News

Strong week for soybean, corn export sales

The USDA says corn and soybean export sales surged during the week ending October 14^th. U.S. beans and corn have the best price position on the export market when compared to competing nations. Soybean sales were nearly 3 million tons, with almost 2 million of that to China, while corn topped a million tons for the third week in a row thanks to strong demand from unknown destinations and Mexico. Sorghum was up sharply, led by China and unknown destinations, while rice hit a marketing year high. Pork exports declined with no sales to China and beef hit a marketing year low. The USDA’s next set of supply and demand estimates is out November 9^th.

Physical shipments of soybeans were more than what’s needed to meet USDA projections for the current marketing year. 2021/22 got underway June 1^st for wheat, August 1^st for cotton and rice, September 1^st for beans, corn, and sorghum, and October 1^st for soybean products. The marketing year for beef and pork is the calendar year.

Wheat came out at 362,400 tons (13.3 million bushels), down 36% from the week ending October 7^th and 6% from the four-week average. Nigeria purchased 98,000 tons and Japan bought 92,100 tons. At this point in the 2021/22 marketing year, wheat sales are 453.3 million bushels, compared to 566.5 million in 2020/21.

Corn was reported at 1,273,100 tons (50.1 million bushels), up 22% from the previous week and 67% from the four-week average. Unknown destinations picked up 456,700 tons and Mexico purchased 377,100 tons. About a month and a half into the marketing year, corn sales are 1.138 billion bushels, compared to 1.116 billion a year ago. Sales of 500 tons for 2022/23 delivery were to Canada.

Sorghum sales were 262,500 tons (10.3 million bushels), a solid improvement from both the week before and the four-week average. China bought 127,300 tons and unknown destinations picked up 103,000 tons. Sorghum exports are 103.1 million bushels, compared to 126.6 million this time last year.

Rice sales were 81,400 tons, sharply higher than the prior week and 54% larger than the four-week average. Mexico purchased 47,800 tons and Honduras bought 17,100 tons. Rice exports are 1,052,700 tons, compared to 1,079,400 a year ago.

Soybeans were pegged at 2,878,400 tons (105.8 million bushels), a big increase on the week and from the four-week average. China picked up 1,884,400 tons and unknown destinations purchased 568,800 tons. So far, this marketing year, soybean sales are 1.075 billion bushels, compared to 1.666 billion last year.

Soybean meal came out at 240,400 tons. Ecuador bought 64,900 tons and Canada picked up 49,800 tons. A couple of weeks into the marketing year, soybean meal sales are 4,294,800 tons, compared to 3,941,100 a year ago. Sales of 6,100 tons for 2022/23 delivery were to Japan (3,600 tons) and the Netherlands (2,500 tons).

Soybean oil was reported at 3,000 tons. Mexico purchased 2,200 tons and the Dominican Republic bought 800 tons. Cumulative soybean oil sales are 108,000 tons, compared to 215,200 last year.

Upland cotton was pegged at 391,800 bales, above the previous week and 20% more than the four-week average. China picked up 272,800 bales and Turkey purchased 76,900 bales. 2021/22 upland cotton exports are 8,008,900 bales, compared to 8,461,000 in 2020/21. Sales of 63,900 bales for 2022/23 delivery were mainly to China (50,000 bales) and Turkey (12,300 bales).

Net beef sales totaled 7,800 tons, a decline of 50% from the week before and 51% from the four-week average. The reported buyers were Japan (2,300 tons), China (1,600 tons), South Korea (1,100 tons), Taiwan (1,100 tons), and Mexico (300 tons). Shipments of 17,100 tons were up 10% from the prior week and steady with the four-week average, primarily to South Korea (5,400 tons), Japan (4,000 tons), China (3,000 tons), Mexico (1,400 tons), and Taiwan (1,100 tons). Net reductions of 200 tons for 2022 delivery occurred as the sale of 200 tons to Chile and 100 tons to Indonesia were more than offset by a cancellation of 500 tons by South Korea.

Net pork sales totaled 20,900 tons, a decrease of 38% on the week and 36% from the four-week average. The listed purchasers were Mexico (10,200 tons), South Korea (3,700 tons), Japan (2,300 tons), Colombia (800 tons), and the Dominican Republic (800 tons), with cancellations by the Bahamas (200 tons) and New Zealand (100 tons). Shipments of 32,800 tons were 11% above the previous week and 5% higher than the four-week average, mostly to Mexico (15,000 tons), Japan (4,400 tons), China (4,100 tons), Colombia (2,700 tons), and Canada (1,800 tons).