USDA: mostly slow week for export sales
The USDA says China made a handful of appearances in the weekly export sales report. For the week ending August 29th, China bought 1,400 tons of U.S. pork and 1,600 tons of old crop sorghum, while cancelling on more than 150,000 tons of old crop U.S. corn and 4,600 bales of new crop upland cotton. Trade negotiations between the U.S. and China are scheduled to resume in early October.
Overall, soybean and soybean oil exports fell with most analysts’ estimates, while corn, soybean meal, and wheat were below expectations. Physical shipments of wheat were more than what’s needed weekly to meet USDA projections for the current marketing year, but corn, sorghum, and soybeans fell short of their respective marks. The 2019/20 marketing year started June 1st for wheat, 2018/19 ran through the end of August for beans, corn, and sorghum, and 2018/19 runs through the end of September for soybean products.
Wheat came out at 312,100 tons (11.5 million bushels), down 53% from the week ending August 22nd and 43% lower than the four-week average. The Philippines purchased 86,200 tons and Mexico bought 45,100 tons. Roughly a quarter into the 2019/20 marketing year, wheat sales are 418.7 million bushels, compared to 343.6 million in 2018/19.
Old crop corn had a net reduction of 165,900 tons (-6.5 million bushels). Sales of 1,200 to 44,800 tons were more than offset by a few cancellations, including China at 157,500 tons and unknown destinations at 59,500 tons. With just a couple of reporting days remaining in 2018/19, corn sales are 1.966 billion bushels, compared to 2.385 billion late in 2017/18. Sales of 416,700 tons (16.4 million bushels) for 2019/20 delivery were mainly to Mexico (170,300 tons) and unknown destinations (142,000 tons).
Sorghum sales were 1,600 tons (100,000 bushels), all to China. Cumulative sorghum exports are 68.0 million bushels, compared to 200.2 million this time last year.
Rice exports were 94,700 tons. Nicaragua picked up 54,400 tons and Honduras purchased 22,000 tons. Less than a month into the marketing year, rice sales are 1,024,800 tons, compared to 568,500 a year ago.
Soybeans were pegged at 69,400 tons (2.6 million bushels). Indonesia bought 131,200 tons and Pakistan picked up 59,500 tons, but unknown destinations canceled on 312,400 tons. So far, this marketing year, soybean sales are 1.793 billion bushels, compared to 2.159 billion last year. Sales of 788,400 tons (29.0 million bushels) for 2019/20 delivery were primarily to unknown destinations (409,000 tons) and Mexico (102,000 tons).
Soybean meal was reported at 68,500 tons. Japan purchased 25,200 tons and Mexico bought 15,800 tons, while Guatemala canceled on 9,200 tons. At this point in the marketing year, soybean meal sales are 12,046,400 tons, compared to 12,499,100 a year ago. Sales of 158,600 tons for 2019/20 delivery were mostly to Mexico (49,600 tons) and Ecuador (30,000 tons).
Soybean oil sales were 3,100 tons, a drop of 66% from the week before and 72% less than the four-week average. The Dominican Republic picked up 1,500 tons and Mexico purchased 800 tons. 2018/19 soybean oil sales are 891,600 tons, compared to 1,057,300 in 2017/18. Sales of 9,500 tons for 2019/20 delivery were primarily to South Korea (7,000 tons) and Guatemala (2,000 tons).
Upland cotton came out at 162,800 running bales. Vietnam picked up 42,100 bales and Pakistan purchased 22,400 bales, while China canceled on 4,600 bales. Early in the marketing year, cotton sale are 8,247,600 bales, compared to 8,753,600 last year. Sales of 198,200 bales for 2020/21 delivery were to Mexico (180,000 bales) and Japan (18,200 bales).
Net beef sales totaled 18,100 tons, up 31% from the previous week and 5% higher than the four-week average. The listed buyers were Japan (5,600 tons), South Korea (4,200 tons), Hong Kong (2,600 tons), Taiwan (2,000 tons), and Mexico (1,300 tons). Sales of 200 tons for 2020 delivery were to Japan.
Net pork sales totaled 17,700 tons, a decrease of 38% on the week and 13% from the four-week average. The reported purchasers were Mexico (7,700 tons), South Korea (4,200 tons), Canada (1,800 tons), China (1,400 tons), and Australia (1,300 tons), with a cancellation by Japan (1,600 tons).