Soybean export sales hit marketing year low
The USDA says soybean export sales during the week ending April 9th were a marketing year low. Egypt was leading buyer with no new sales to China as Beijing continues to rely on Brazil, with their prices at a significant discount to U.S. prices because of the dive in their currency and the relative strength of the dollar. After delays related to weather and COVID-19, cargoes of beans from Brazil are reportedly arriving at crush facilities southern China at a slow but steady pace. Cotton sales were also a marketing year low following several cancellations. China was the biggest buyer of U.S. pork and sorghum, and also purchased U.S. beef and wheat. The USDA’s next set of supply and demand estimates is out May 12th.
Soybean export sales fell below pre-report expectations, while corn, soybean products, and wheat were within analysts’ estimates. Physical shipments of corn were more than what’s needed to meet USDA projections for the current marketing year. The 2019/20 marketing year got underway June 1st for wheat, August 1st for corn and rice, September 1st for beans, corn, and sorghum, and October 1st for soybean products.
Wheat came out at 178,300 tons (6.6 million bushels), down 31% from the week ending April 2nd and 49% lower than the four-week average. Mexico purchased 84,700 tons and China bought 55,000 tons, while Peru canceled on 35,000 tons. With less than two months left in the 2019/20 marketing year, wheat sales are 926.7 million bushels, compared to 915.4 million in 2018/19. Sales of 419,400 tons (15.4 million bushels) for 2020/21 delivery were mainly to China (110,000 tons) and Japan (93,900 tons).
Corn was reported at 906,600 tons (35.7 million bushels), 51% less than the previous week and 36% below the four-week average. Japan picked up 290,100 tons and Mexico purchased 206,400 tons. More than halfway though the marketing year, corn sales are 1.365 billion bushels, compared to 1.759 billion this time last year. Sales of 62,900 tons (2.5 million bushels) for 2020/21 delivery were primarily to unknown destinations (30,000 tons) and Jamaica (22,000 tons).
Sorghum sales were 74,300 tons (2.9 million bushels). China bought 137,800 tons and South Korea picked up 53,000 tons, but unknown destinations canceled on 126,300 tons. For the marketing year to date, sorghum exports are 122.9 million bushels, compared to 45.5 million a year ago.
Rice exports were 33,300 tons, 24% under the week before and a loss of 43% from the four-week average. Honduras purchased 11,200 tons and Saudi Arabia bought 6,100 tons. Rice sales are 3,034,200 tons, compared to 2,750,000 last year.
Soybeans were pegged at 244,700 tons (9.0 million bushels), a decline of 53% from the prior week and 68% from the four-week average. Egypt picked up 114,100 tons and Japan purchased 38,900 tons. So far, this marketing year, soybean sales are 1.383 billion bushels, compared to 1.625 billion a year ago. Sales of 60,000 tons (2.2 million bushels) for 2020/21 delivery were to unknown destinations.
Soybean meal came out at 158,700 tons, down 18% from the previous week and 2% lower than the four-week average. Ecuador bought 33,200 tons and Morocco picked up 30,900 tons. At this point in the marketing year, soybean meal sales are 9,138,900 tons, compared to 9,768,000 last year.
Soybean oil was reported at 21,200 tons. Guatemala purchased 5,800 tons and Mexico bought 5,700 tons. Cumulative bean oil sales are 945,200 tons, compared to 642,800 a year ago.
Upland cotton had a net reduction of 183,800 bales. Sales of 1,200 to 36,600 bales were more than offset by cancellations of 3,200 to 138,700 bales. 2019/20 upland cotton sales are 15,103,500 bales, compared to 13,394,300 last year. Sales of 71,800 bales for 2020/21 delivery were mostly to Vietnam (35,700 bales) and Mexico (20,000 bales).
Net beef sales totaled 20,200 tons, up 20% on the week and 16% from the four-week average. The reported buyers were Japan (9,500 tons), South Korea (5,200 tons), Hong Kong (3,200 tons), China (1,500 tons), and Taiwan (700 tons), with cancellations by Canada (200 tons), Mexico (100 tons), and Vietnam (100 tons). Shipments of 16,700 tons were down 6% from the previous week and 2% from the four-week average, mainly to Japan (6,700 tons), South Korea (4,300 tons), Taiwan (1,500 tons), Canada (1,100 tons), and Hong Kong (1,100 tons).
Net pork sales totaled 45,700 tons, a decrease of 18% from the week before, but an increase of 9% from the four-week average. The listed purchasers were China (16,400 tons), Mexico (13,000 tons), South Korea (4,500 tons), Japan (4,300 tons), and Canada (3,000 tons). Shipments of 36,600 tons were 4% lower than the prior week and 14% less than the four-week average, primarily to China (18,400 tons), Mexico (4,900 tons), Japan (4,500 tons), South Korea (2,800 tons), and Canada (1,700 tons).