News

Soybean exports top expectations, but show tariff effects

The USDA reports combined old and new crop soybean export sales for the week ending June 28th were above most pre-report estimates. The 2018/19 marketing year for wheat got underway June 1st, while 2017/18 runs through the end of August for corn, sorghum, and soybeans and the end of September for soybean products.

Wheat came out at 440,100 tons (16.2 million bushels). Taiwan purchased 97,600 tons and Mexico bought 88,300 tons. Less than a month into the 2018/19 marketing year, wheat sales are 220.2 million bushels, compared to 308.4 million in 2017/18.

Corn was reported at 440,700 tons (17.3 million bushels), down 48% from the week ending June 21st and 37% lower than the four-week average. Mexico picked up 144,800 tons and Egypt purchased 109,200 tons, but unknown destinations canceled on 228,800 tons. For the 2017/18 marketing year to date, corn sales are 2.271 billion bushels, compared to 2.189 billion with less than a quarter left in 2016/17. Sales of 232,100 tons (9.1 million bushels) for 2018/19 delivery were mainly to Guatemala (91,100 tons) and Mexico (45,700 tons).

Sorghum sales were 37,200 tons (1.5 million bushels). Mexico bought 38,000 tons and South Africa picked up 9,200 tons, while unknown destinations canceled on 10,000 tons. Cumulative sorghum sales are 204.6 million bushels, compared to 177.3 million this time last year.

Soybeans were pegged at 561,600 tons (20.6 million bushels), up 57% from the previous week and 78% higher than the four-week average. The Netherlands purchased 162,100 tons and Pakistan bought 134,700 tons, but China canceled on 366,000 tons. So far, this marketing year, soybean sales are 2.105 billion bushels, compared to 2.195 billion a year ago. Sales of 458,700 tons (16.9 million bushels) for 2018/19 delivery were primarily to Mexico (193,600 tons) and unknown destinations (187,500 tons), with a cancellation by China (66,000 tons).

Soybean meal was reported at 132,800 tons, 9% less than the week before, but 14% more than the four-week average. The Philippines picked up 31,600 tons and Ecuador purchased 30,800 tons, while unknown destinations canceled on 25,000 tons. With roughly a quarter remaining in the current marketing year, soybean meal sales are 11,508,000 tons, compared to 10,003,100 last year. Sales of 61,600 tons for 2018/19 delivery were mostly to Guatemala (44,200 tons) and Mexico (8,100 tons).

Soybean oil came out at 36,600 tons, 20% above the prior week and significantly larger than the four-week average. South Korea bought 13,000 tons and unknown destinations picked up 12,300 tons. 2017/18 soybean oil sales are 967,900 tons, compared to 989,600 in 2016/17.

Net beef sales totaled 12,900 tons, a decrease of 30% on the week and 29% from the four-week average. The reported purchasers were Japan (3,700 tons), Hong Kong (2,700 tons), Taiwan (1,800 tons), Mexico (1,600 tons), and South Korea (1,400 tons), with a cancellation by Chile (100 tons).

Net pork sales totaled 16,500 tons, down 32% from the previous week, but up 15% from the four-week average. The listed buyers were Mexico (3,900 tons), Hong Kong (2,700 tons), South Korea (2,600 tons), Canada (2,500 tons), and Japan (1,700 tons).