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USDA: China made big U.S. pork purchases last week
The USDA says China bought a lot of pork during the week ending October 3rd as it tries to make up for domestic production lost to African swine fever. Beijing purchased 123,400 tons of U.S. pork for delivery in 2020, along with 18,800 tons for delivery this year, and was also the leading weekly buyer for U.S. soybeans and wheat. Thursday morning, the USDA also reported the sale of 398,000 tons of 2019/20 U.S. soybeans to China. High-level trade negotiations between the U.S. and China resumed this week.
Weekly soybean and soybean meal sales topped most analysts’ estimates, while wheat was within expectations and corn and soybean oil fell short of the low end of the range. Physical shipments of soybeans were more than what’s needed weekly to meet USDA’s current projection for the marketing year. The 2019/20 marketing year started June 1st for wheat, September 1st for beans, corn, and sorghum, and October 1st for soybean products.
Wheat came out at 521,900 tons (19.2 million bushels), up 59% from the week ending September 26th and 38% higher than the four-week average. China purchased 130,000 tons and Taiwan bought 110,300 tons, while Indonesia canceled on 47,300 tons. At this point in the 2019/20 marketing year, wheat sales are 493.3 million bushels, compared to 426.1 million in 2018/19.
Corn was reported at 284,500 tons (11.2 million bushels). Colombia picked up 109,300 tons and Japan purchased 75,600 tons. About a month into the marketing year, corn sales are 393.5 million bushels, compared to 815.1 million a year ago.
Sorghum sales were 13,700 tons (500,000 bushels). Japan bought 10,000 tons and unknown destinations picked up 2,000 tons. For the marketing year to date, sorghum exports are 5.9 million bushels, compared to 6.2 million this time last year.
Soybeans were pegged at 2,092,500 tons (76.9 million bushels). China purchased 1,177,700 tons and unknown destinations bought 210,000 tons. So far, this marketing year, soybean sales are 602.1 million bushels, compared to 755.0 million a year ago. Sales of 3,000 tons (100,000 bushels) for 2020/21 delivery were to Japan.
2019/20 soybean meal sales were 364,700 tons. Mexico picked up 201,300 tons and Colombia purchased 47,400 tons. Outstanding sales of 802,600 tons were carried over from 2018/19 to 2019/20. Cumulative soybean meal sales for the current marketing year are 3,463,100 tons, compared to 3,948,000 early last year.
2019/20 soybean oil sales were 1,200 tons. The Dominican Republic bought 1,000 tons and Canada picked up 100 tons. Outstanding sales of 125,900 tons were carried over from 2018/19 to 2019/20. A few days into the current marketing year, soybean oil sales are 195,900 tons, compared to 149,700 a year ago.
Upland cotton came out at 188,800 bales, 6% more than the previous week and 53% above the four-week average. Pakistan purchased 137,300 bales and Vietnam bought 37,500 bales. Roughly two months into the marketing year, upland cotton sales are 8,929,200 bales, compared to 9,123,300 last year. A net reduction of 5,300 bales for 2020/21 delivery followed a cancellation by El Salvador.
Beef had a net reduction of 29,100 tons. The reported purchasers were Japan (4,200 tons), South Korea (4,200 tons), Mexico (1,200 tons), Taiwan (1,100 tons), and Indonesia (700 tons), but those were more than offset by a cancellation from Hong Kong (36,000 tons). Sales of 1,600 tons for 2020 delivery were to South Korea (1,100 tons) and Japan (500 tons).
Net pork sales were 31,300 tons, an increase of 1% on the week and 26% from the four-week average. The listed buyers were China (18,800 tons), Canada (3,300 tons), Mexico (2,700 tons), South Korea (2,300 tons), and Japan (1,900 tons), with a cancellation by Guatemala (500 tons). Net sales of 123,500 tons for 2020 delivery were to China (123,400 tons) and Australia (100 tons).
