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USDA: China passed on U.S. pork last week

The USDA says China did make purchases of U.S. ag goods last week. China bought 136,000 tons of soybeans, including 133,000 tons switched from “unknown destinations”, and 124,000 tons of sorghum, but shied away from U.S. pork for the second week in a row because of the 62% tariff on imports, even as African Swine Fever devastates their domestic herd and slashes production. Face to face trade talks between the U.S. and China are scheduled to resume next week.

For the week ending April 25th, 2018/19 soybean oil exports were towards the low end of estimates, while corn, soybeans, soybean meal, and wheat were below analysts’ expectations. The current marketing year runs through the end of May for wheat, the end of August for beans, corn, and sorghum, and the end of September for soybean products.

Wheat was a new marketing year low at 122,100 tons (4.5 million bushels), down 71% from the week ending April 18th and 72% lower than the four-week average. Mexico purchased 52,100 tons and the Philippines bought 40,000 tons, but unknown destinations canceled on 58,000 tons. With about a month left in the 2018/19 marketing year, wheat sales are 935.6 million bushels, compared to 863.6 million in 2017/18. Sales of 297,400 tons (10.9 million bushels) for 2019/20 delivery were mainly to Taiwan (73,400 tons) and Mexico (71,100 tons).

Corn was reported at 586,500 tons (23.1 million bushels), 25% less than the previous week and 17% below the four-week average. Japan picked up 301,400 tons and Mexico purchased 127,200 tons. At this point in the marketing year, corn sales are 1.813 billion bushels, compared to 2.005 billion this time last year. Sales of 209,500 tons (8.2 million bushels) for 2019/20 delivery were to Mexico (180,000 tons) and Japan (29,500 tons).

Sorghum came out at 185,000 tons (7.3 million bushels), up 9% from the week before and 96% higher than the four-week average. China bought 124,000 tons and unknown destinations picked up 50,000 tons. For the marketing year to date, sorghum sales are 59.5 million bushels, compared to 200.3 million a year ago.

Soybeans were pegged at 313,400 tons, a decline of 47% from the prior week and 61% under the four-week average. China purchased 136,400 tons and the Netherlands bought 64,000 tons, but unknown destinations canceled on 242,100 tons. So far, this marketing year, soybean exports are 1.659 billion bushels, compared to 2.013 billion last year. Sales of 23,500 tons (900,000 bushels) for 2019/20 delivery were primarily to Malaysia (10,000 tons) and Thailand (10,000 tons).

Soybean meal was reported at 79,200 tons, down 76% from the previous week and 67% lower than the four-week average. The Philippines picked up 50,200 tons and El Salvador purchased 25,000 tons, while Italy canceled on 38,000 tons. Cumulative soybean meal sales are 10,176,400 tons, compared to 10,060,800 a year ago. Sales of 16,500 tons for 2019/20 delivery were to El Salvador (15,000 tons) and Canada (1,500 tons).

Soybean oil came out at 7,300 tons, 63% below the week before and 75% under the four-week average. South Korea bought 5,000 tons and the Dominican Republic picked up 1,200 tons. 2018/19 soybean oil sales are 669,700 tons, compared to 798,800 in 2017/18.

Net beef sales totaled 10,600 tons, a decrease of 54% on the week and a drop of 50% from the four-week average. The listed purchasers were Japan (5,800 tons), Taiwan (1,300 tons), Mexico (800 tons), South Korea (700 tons), and Canada (600 tons).

Net pork sales totaled 16,100 tons, 4% more than the prior week, but 59% less than the four-week average. The reported buyers were Mexico (6,000 tons), Japan (3,500 tons), Australia (1,600 tons), South Korea (1,500 tons), and Canada (1,100 tons).