China buys more U.S. pork

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China buys more U.S. pork

China bought more U.S. pork during the week ending
April 11th. The USDA says Beijing purchased 23,500 tons, bringing the two-week
total to 101,200 tons, even as Chinese tariffs on U.S. pork remain in place
during trade negotiations. African Swine Fever has hit China’s domestic pork
industry hard, with China’s National Bureau of Statistics reporting production
during the first quarter of the year was down 5% and the herd size dropped 10%.
A tentative timeline has reportedly been reached for continued negotiations,
but public details are scarce.

Grain and oilseed export sales were within most analysts’ pre-report expectations. Physical shipments of corn were above what’s needed weekly to meet USDA projections for the current marketing year, while soybeans, wheat, and sorghum were below required levels. The 2018/19 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 came out at 317,700 tons (11.7 million bushels), up 16% from the week ending April 4th, but down 28% from the four-week average. Nigeria purchased 77,800 tons and unknown destinations bought 69,300 tons. With about a month and a half remaining in 2018/19, wheat sales are 915.4 million bushels, compared to 844.1 million late in 2017/18. Sales of 227,800 tons (8.4 million bushels) for 2019/20 delivery were mainly to Algeria and the Philippines.

Corn was reported at 947,600 tons (37.3 million bushels), 73% higher than the previous week and 33% more than the four-week average. Japan picked up 365,200 tons and Mexico purchased 309,700 tons, while unknown destinations canceled on 51,800 tons. More than halfway into the marketing year, corn sales are 1.759 billion bushels, compared to 1.940 billion this time last year. Sales of 18,400 tons (700,000 bushels) for 2019/20 delivery were primarily to El Salvador, Guatemala, and Honduras, all at 4,000 tons.

Sorghum sales were 119,700 tons (4.7 million bushels), a significant rise from both the week before and the four-week average. Unknown destinations bought 108,000 tons and Japan picked up 11,700 tons. At this point in the marketing year, sorghum sales are 45.5 million bushels, compared to 200.5 million a year ago.

Soybeans were pegged at 382,100 tons (14.0 million bushels), 41% above the prior week, but 46% below the four-week average. Unknown destinations purchased 170,600 tons and South Korea bought 48,700 tons. So far, this marketing year, soybean sales are 1.628 billion bushels, compared to 1.984 billion last year. Sales of 21,100 tons (800,000 bushels) for 2019/20 delivery were to Mexico (19,600 tons) and Indonesia (1,500 tons).

Soybean meal came out at 295,300 tons, a jump of 94% on the week and up sharply from the four-week average. The Philippines picked up 142,100 tons and South Korea purchased 52,500 tons, but unknown destinations canceled on 52,000 tons. Cumulative soybean meal sales are 9,768,000 tons, compared to 9,591,200 a year ago. Sales of 2,800 tons for 2019/20 delivery were to Canada.

Soybean oil was reported at 24,200 tons, 28% lower than the previous week, but 10% higher than the four-week average. South Korea bought 16,000 tons and Mexico picked up 4,100 tons. 2018/19 soybean oil sales are 642,800 tons, compared to 743,100 in 2017/18. Sales of 1,700 tons for 2019/20 delivery were to Mexico.

Net beef sales totaled 28,800 tons, a big increase from the week before and 81% larger than the four-week average. The listed purchasers were South Korea (10,900 tons), Japan (8,800 tons), Mexico (2,900 tons), Hong Kong (2,100 tons), and Canada (1,700 tons), with a cancellation by Chile (100 tons).

Net
pork sales totaled 40,300 tons, 56% less than the prior week, but 6% more than
the four-week average. The reported buyers were China (23,500 tons), Hong Kong
(4,800 tons), Mexico (4,000 tons), South Korea (2,600 tons), and Canada (1,400
tons), with a cancellation by Guatemala (600 tons).

2019-04-18T11:06:53-05:00Agriculture News|