News

Strong week for new crop corn exports

The USDA says new crop corn sales topped 4 million tons, including more than 3 million tons in sales to China, while old crop demand for corn and soybeans continues to be limited by price and seasonal factors. The USDA originally had beef at a marketing year high, but that was due to a reporting error. There were good weekly beef numbers for China and Japan. Pork export sales were up modestly on the week, but a little bit slower than average, with Mexico, Japan, and China leading the way. Old crop soybean oil sales were a marketing year low. The USDA’s next set of supply and demand estimates is out June 10^th.

Physical shipments of corn and soybeans were above what’s needed to meet USDA projections for the current marketing year. The 2020/21 marketing year started June 1^st, 2020 for wheat, August 1^st, 2020 for cotton and rice, September 1^st, 2020 for beans, corn, and sorghum, and October 1^st, 2020 for soybean products. The marketing year for beef and pork is the calendar year.

Wheat came out at 121,000 tons (4.4 million bushels), up solidly from the week ending May 6^th and 21% from the four-week average. Indonesia purchased 66,500 tons and Nigeria purchased 60,100 tons, but unknown destinations canceled on 118,900 tons. With less than a month left in the 2020/21 marketing year, wheat sales are 942.4 million bushels, compared to 975.8 million late in 2019/20. Sales of 317,700 tons (11.7 million bushels) for 2021/22 delivery were mainly to unknown destinations (123,300 tons) and Japan (60,800 tons).

Corn was reported at 277,600 tons (10.9 million bushels), higher than the previous week’s marketing year low and 19% above the four-week average. Mexico picked up 294,100 tons and Japan purchased 65,300 tons, but unknown destinations canceled on 195,300 tons. Closing in on the final quarter of the marketing year, corn sales are 2.678 billion bushels, compared to 1.552 billion this time last year. Sales of 4,061,800 tons (159.9 million bushels) for 2021/22 delivery were to China (3,740,000 tons) and Mexico (198,800 tons), with a cancellation by Nicaragua (31,200 tons).

Sorghum sales were 119,800 tons (4.7 million bushels), an increase of 69% from the week before and larger than the four-week average. China bought 119,800 tons. Sorghum exports are 289.3 million bushels, compared to 144.6 million a year ago. Sales of 53,000 tons (2.1 million bushels) for 2021/22 delivery were to China.

Rice sales were 96,200 tons, a strong gain from the prior week and 98% greater than the four-week average. Mexico picked up 42,300 tons and Venezuela purchased 28,500 tons. Rice exports are 3,104,400 tons, compared to 3,265,900 last year. Sales of 700 tons for 2021/22 delivery were to Guatemala.

Soybeans were pegged at 84,200 tons (3.1 million bushels), down 11% on the week and 45% from the four-week average. Japan bought 57,800 tons and Egypt picked up 55,000 tons, but unknown destinations canceled on 101,300 tons. So far, this marketing year, soybean sales are 2.258 billion bushels, compared to 1.517 billion a year ago. Sales of 96,000 tons (3.5 million bushels) for 2021/22 delivery were primarily to Mexico (47,500 tons) and unknown destinations (47,500 tons).

Soybean meal came out at 189,400 tons, up considerably from the previous week and 34% from the four-week average. Canada purchased 41,700 tons and Ecuador bought 30,000 tons. At this point in the marketing year, soybean meal sales are 9,889,500 tons, compared to 9,837,100 last year. Sales of 77,600 tons were mostly to Mexico (24,900 tons) and Honduras (15,100 tons).

Soybean oil had a net reduction of 4,500 tons. Sales of 800 tons to Canada and 100 tons to Mexico were more than offset by cancellations ranging from 500 to 2,200 tons. Cumulative soybean oil sales are 665,000 tons, compared to 1,084,100 a year ago.

Upland cotton was pegged at 108,000 bales, a jump of 99% from the week before and 45% from the four-week average. China picked up 24,800 bales and Turkey purchased 23,300 bales. 2020/21 upland cotton exports are 15,375,400 bales, compared to 16,291,200 in 2019/20. Sales of 21,800 bales for 2021/22 delivery were mainly to Turkey (6,600 bales) and Peru (5,600 bales).

Net beef sales totaled 23,200 tons, not 56,900 as originally reported by the USDA. The reported buyers were China (9,200 tons), Japan (5,900 tons), South Korea (4,500 tons), and Taiwan (2,200 tons), with a cancellation by Belgium (100 tons). The 33,700 tons originally reported as being sold to the Netherlands were actually net sales of 34 tons, according to a correction from the USDA. Shipments of 19,400 tons were primarily to Japan (5,900 tons), South Korea (5,100 tons), China (2,900 tons), and Taiwan (1,400 tons).

Net pork sales totaled 19,000 tons, up 29% from the week before, but down 1% from the four-week average. The listed purchasers were Mexico (8,300 tons), Japan (3,600 tons), China (3,100 tons), Canada (1,000 tons), South Korea (1,000 tons), with cancellations by Australia (200 tons) and New Zealand (100 tons). Shipments of 34,600 tons were down 17% from the prior week and 24% from the four-week average, mostly to China (11,100 tons), Mexico (10,600 tons), Japan (4,500 tons), South Korea (2,400 tons), and Canada (1,100 tons).