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Mexico, Canada buy U.S. pork, China passes

The USDA says Canada and Mexico bought U.S. ag goods during the week ending July 11th, even as all three nations wait for the enaction of the USMCA trade pact. Mexico was the leading buyer of pork and wheat and the third biggest buyer of beef, while Canada also purchased up U.S. beef, pork, and corn. Mexico did pick up U.S. corn as well. China bought U.S. sorghum, but no soybeans or pork and canceled on previously purchased American Pima cotton. Recent rhetoric from both the U.S. and China seems to indicate the world’s largest economies are not close to a new trade deal.

For the current marketing year, corn sales were below analysts’ estimates, while soybeans, soybean meal, soybean oil and wheat were within pre-report projections. Physical soybean shipments were just ahead of what’s needed to meet USDA projections for the current marketing year, but the overall pace remains significantly behind last marketing year, and shipments of corn, sorghum, and wheat were below their respective targets. The 2019/20 marketing year for wheat started June 1st, while 2018/19 runs through the end of August for beans, corn, and sorghum and the end of September for soybean products.

Wheat came out at 347,300 tons (12.8 million bushels), up 22% from the week ending July 4th and 2% higher than the four-week average. Mexico purchased 166,500 tons and South Korea bought 80,000 tons, while unknown destinations canceled on 32,300 tons. About a month and a half into the 2019/20 marketing year, wheat sales are 288.7 million bushels, compared to 236.2 million in 2018/19.

Corn was reported at 200,000 tons (7.9 million bushels), down 60% from the previous week and 21% lower than the four-week average. Japan picked up 144,300 tons and unknown destinations purchased 31,200 tons, while Colombia canceled on 31,700 tons. With about a month and a half left in 2018/19, corn sales are 1.954 billion bushels, compared to 2.312 billion late in 2017/18. Sales of 133,000 tons (5.2 million bushels) for 2019/20 delivery were mainly to Panama (104,100 tons) and Mexico (11,200 tons).

Net sorghum sales were 28,100 tons (1.1 million bushels), with sales to China (51,100 tons) and Eritrea (30,000 tons) partially offset by a cancellation from unknown destinations (53,000 tons). For the marketing year to date, sorghum sales are 64.9 million bushels, compared to 198.6 million this time last year.

Rice was pegged at 9,200 tons, a decline of 86% from the week before and 84% below the four-week average. Mexico bought 4,500 tons and Saudi Arabia picked up 1,400 tons. At this point in the marketing year, rice sales are 3,445,700 tons, compared to 2,995,300 a year ago. Sales of 1,400 tons for 2019/20 delivery were primarily to Japan (1,200 tons).

Soybeans came out at 127,900 tons (4.7 million bushels), 3% less than the prior week and 68% under the four-week average. Indonesia purchased 123,500 tons and Germany picked up 62,100 tons, but unknown destinations canceled on 171,100 tons. So far, this marketing year, soybean sales are 1.788 billion bushels, compared to 2.118 billion last year. Sales of 198,400 tons (7.3 million bushels) for 2019/20 delivery were mostly to unknown destinations (77,000 tons) and Egypt (55,000 tons).

Soybean meal was reported at 65,300 tons, 45% more than the previous week and 31% above the four-week average. Ecuador bought 31,300 tons and Morocco picked up 30,000 tons, but unknown destinations canceled on 33,000 tons. Cumulative soybean meal sales are 11,383,600 tons, compared to 11,676,500 a year ago. Sales of 149,500 tons for 2019/20 delivery were mainly to the Philippines (90,000 tons) and Panama (46,000 tons).

Soybean oil sales were 12,200 tons, up 43% on the week, but down 6% from the four-week average. Guatemala purchased 6,000 tons and South Korea bought 2,000 tons. 2018/19 soybean oil sales are 825,700 tons, compared to 1,006,400 in 2017/18. Sales of 1,500 tons for 2019/20 delivery were to Mexico.

Upland cotton was pegged at 64,000 tons, 1% higher than the prior week and 46% more than the four-week average. Vietnam picked up 34,400 running bales and India purchased 11,900 running bales, while Thailand canceled on 4,900 tons. Overall, cotton exports are 15,370,100 running bales, compared to 16,318,700 last year. Sales of 218,900 running bales for 2019/20 delivery were primarily to Vietnam (100,900 running bales).

Net beef sales totaled 19,800 tons, a decrease of 8% on the week, but an increase of 8% from the four-week average. The listed buyers were Japan (8,000 tons), South Korea (3,600 tons), Mexico (3,200 tons), Taiwan (1,300 tons), and Canada (1,100 tons). Sales of 100 tons for 2020 delivery were to Japan.

Net pork sales totaled 30,100 tons, a big jump from the week before and 43% larger than the four-week average. The reported purchasers were Mexico (8,800 tons), Taiwan (8,200 tons), Hong Kong (2,300 tons), Japan (2,300 tons), and Canada (2,000 tons). Net sales of 200 tons for 2020 delivery were to Japan.