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USDA: China big weekly buyer for U.S. pork

The USDA says China bought a sizable amount of U.S. pork during the week of September 5^th. China was the leading weekly buyer at 10,900 tons and another 5,100 tons of previously purchased pork was shipped out to Chinese ports. Beijing also canceled on almost 21,000 bales of upland cotton and didn’t buy any U.S. soybeans. This week, China suspended tariffs on some U.S. products and President Trump delayed a tariff increase on some Chinese goods. Trade negotiations are expected to resume in October.

Physical shipments of corn, sorghum, soybeans, and wheat were less than what’s needed weekly to meet USDA projections for the 2019/20 marketing year. That marketing year started June 1^st for wheat, September 1^st for beans, corn, and sorghum, and gets underway October 1^st for soybean products.

Wheat came out at 610,900 tons (22.4 million bushels), up 96% from the week ending August 29^th and 20% higher than the four-week average. The Philippines purchased 109,000 tons and Mexico bought 91,900 tons, while unknown destinations canceled on 62,500 tons. Just over a quarter into the 2019/20 marketing year, wheat sales are 441.2 million bushels, compared to 357.8 million at this stage of 2018/19. Sales of 8,200 tons for 2020/21 delivery were to unknown destinations.

New crop corn was reported at 498,100 tons (19.6 million bushels). Mexico picked up 193,800 tons and Japan purchased 158,100 tons, but unknown destinations canceled on 120,300 tons. A total of 734,400 tons were carried over from 2018/19 to the new marketing year. A handful of days into the 2019/20 marketing year, corn sales are 283.1 million tons, compared to 597.3 million at the outset of 2017/18. With sales of 278,000 tons on August 31^st, the 2018/19 corn export total was 49,202,100 tons, down 14% from 57,473,700 tons in 2017/18.

New crop sorghum sales were 24,300 tons (1.0 million bushels). Unknown destinations bought 18,000 tons and Mexico picked up 7,500 tons, while Eritrea canceled on 1,200 tons. The USDA says 32,900 tons were carried over into the new marketing year. Cumulative sorghum sales are 2.7 million bushels, compared to 1.8 million this time last year. Including sales of 1,200 tons on August 31^st, the 2018/19 total for sorghum was 1,693,800 tons, a drop of 66% from the 2017/18 total of 5,080,900 tons.

Rice exports were 46,600 tons. Mexico purchased 24,700 tons and Guatemala bought 10,000 tons. Roughly a month into the marketing year, rice exports are 1,071,400 tons, compared to 595,500 a year ago.

New crop soybeans were pegged at 1,172,200 tons (43.1 million bushels). Mexico picked up 644,300 tons and unknown destinations purchased 150,000 tons. Sales of 1,934,300 tons were carried over from last marketing year to this marketing year. So far, at this point in 2019/20, soybean sales are 349.4 million bushels, compared to 622.6 million last year. Including sales of 581,800 tons on August 31^st, the 2018/19 total for soybeans was 46,770,300 tons, 17% less than the 2017/18 total of 56,350,000 tons.

Soybean meal came out at 38,000 tons. The Philippines bought 9,200 tons and unknown destinations picked up 8,500 tons, but Honduras canceled on 9,200 tons. With about a month left in the current marketing year, soybean meal sales are 12,084,300 tons, compared to 12,534,000 a year ago. Sales of 81,100 tons for 2019/20 delivery were mainly to Mexico (36,800 tons) and Colombia (23,600 tons), with a cancellation by unknown destinations (16,000 tons).

Soybean oil was reported at 8,200 tons, a big jump from both the previous week and the four-week average. South Korea purchased 10,000 tons and the Dominican Republic bought 3,700 tons, but unknown destinations canceled on 10,000 tons. 2018/19 soybean oil sales are 899,800 tons, compared to 1,062,000 in 2017/18. Sales of 2,600 tons for 2019/20 were to Mexico.

Upland cotton exports were 74,600 bales, down 54% from the week before and 63% lower than the four-week average. Bangladesh picked up 17,300 bales and Vietnam purchased 17,200 bales, but China canceled on 20,800 bales. Early in the marketing year, cotton sales are 8,322,200 bales, compared to 8,835,400 this time last year. Sales of 500 bales for 2020/21 delivery were to Japan.

Net beef sales totaled 18,000 tons, unchanged on the week but 11% more than the four-week average. The reported buyers were Hong Kong (11,100 tons), Japan (2,900 tons), South Korea (1,000 tons), Taiwan (900 tons), and Mexico (800 tons), with a cancellation by Indonesia (100 tons). Sales of 100 tons for 2020 delivery were to Japan.

Net pork sales totaled 21,900 tons, 24% above the prior week and up 3% from the four-week average. The listed purchasers were China (10,900 tons), Japan (3,800 tons), Canada (2,000 tons), Mexico (2,000 tons), and South Korea (1,400 tons), with a cancellation by Vietnam (100 tons).