Soybean, pork export sales hit marketing year lows

The USDA says soybean and pork export sales notched new marketing year lows last week. China was the leading buyer for soybeans during the week ending December 26th, but it was a routine amount and unknown destinations canceled on more than 200,000 tons of U.S. beans. Pork export sales for 2019 delivery were down sharply on the week with a big cancellation by China, while sales for 2020 delivery were strong, mainly to Mexico and China. Overall, export sales for most of the major commodities were below the previous week, largely because of Christmas. The USDA’s next set of supply and demand estimates is out January 10th.

Soybean and soybean oil exports fell below pre-report estimates, while corn, soybean meal, and wheat were within analysts’ expectations. The 2019/20 marketing year got underway June 1st for wheat, August 1st for cotton and rice, September 1st for beans, corn, and sorghum, and October 1st for soybean products.

Wheat came out at 312,900 tons (11.5 million bushels), down 56% from the week ending December 19th and 46% lower than the four-week average. Indonesia purchased 71,100 tons and Mexico bought 61,200 tons. About seven months into the 2019/20 marketing year, wheat sales are 692.8 million bushels, compared to 653.2 million in 2018/19. Sales of 20,400 tons (700,000 bushels) for 2020/21 delivery were to Italy (20,000 tons) and Nicaragua (400 tons).

Corn was reported at 531,400 tons (20.9 million bushels), 15% less than the previous week and 43% below the four-week average. Mexico picked up 237,700 tons and Japan purchased 172,100 tons. Roughly a third of the way through the marketing year, corn sales are 722.6 million bushels, compared to 1.253 billion this time last year. Sales of 8,600 tons (300,000 bushels) for 2020/21 delivery were to Japan.

Sorghum sales of 400 tons were to Mexico. At this point in the marketing year, sorghum exports are 42.8 million bushels, compared to 18.3 million a year ago.

Rice exports were 45,900 tons, a decline of 26% from the week before and down 4% from the four-week average. Nicaragua bought 15,000 tons and Venezuela picked up 10,000 tons. Rice sales are 2,149,900 tons, compared to 1,825,000 last year.

Soybeans were pegged at 330,300 tons (12.1 million bushels), a decline of 31% from the prior week and 41% from the four-week average. China purchased 160,200 tons and Bangladesh bought 112,300 tons, but unknown destinations canceled on 202,900 tons. So far, this marketing year, soybean sales are 1.084 billion bushels, compared to 1.138 billion a year ago. Sales of 1,700 tons (100,000 bushels) for 2020/21 delivery were to Japan.

Soybean meal came out at 94,700 tons, 31% lower than the previous week and 41% less than the four-week average. Mexico picked up 33,900 tons and Venezuela purchased 15,000 tons. For the marketing year to date, soybean meal exports are 5,538,600 tons, compared to 6,784,900 last year. Sales of 1,500 tons for 2020/21 delivery were to Mexico.

Soybean oil had a net reduction of 1,900 tons, with sales of 100 to 2,500 tons more than offset by a cancellation on 7,000 tons by unknown destinations. Cumulative soybean oil sales are 425,700 tons, compared to 403,700 a year ago.

Upland cotton was reported at 246,200 bales, up 82% from the week before and 19% higher than the four-week average. Vietnam bought 114,300 bales and Turkey picked up 36,100 bales. 2019/20 upland cotton exports are 11,474,500 tons, compared to 10,579,000 in 2018/19. Sales of 19,400 bales for 2020/21 delivery were mainly to Vietnam (13,200 bales) and Bangladesh (6,000 bales).

Net beef sales totaled 3,700 tons, a decrease of 42% on the week and 45% from the four-week average. The listed purchasers were Japan (1,600 tons), Mexico (500 tons), Canada (300 tons), Hong Kong (200 tons), and Taiwan (200 tons), with a cancellation by South Korea (200 tons). Net sales of 5,700 tons for 2020 delivery were primarily to Taiwan (2,100 tons), Japan (1,800 tons), South Korea (600 tons), Mexico (400 tons), and Hong Kong (300 tons).

Net pork sales totaled 3,300 tons, a drop of 80% from the prior week and 87% under the four-week average. The reported buyers were Mexico (9,600 tons), Japan (1,800 tons), South Korea (1,500 tons), Nicaragua (1,000 tons), and Chile (700 tons), with cancellations by China (13,300 tons) and Colombia (200 tons). Net sales of 24,100 tons for 2020 delivery were mostly to Mexico (10,400 tons), China (9,700 tons), Australia (2,700 tons), Japan (2,400 tons), and Canada (600 tons), with cancellations by South Korea (2,100 tons) and Chile (100 tons).

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