Soybean, sorghum exports recover from recent lows

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Soybean, sorghum exports recover from recent lows

The USDA says U.S. export sales during the week ending January 7^th, generally bounced back from the lows of the previous week. Soybeans and sorghum both bounced off of marketing year lows, with solid interest from China but while an unknown destination was the big buyer for sorghum, it canceled on more than a half a million tons of beans. Cotton, corn, soybean meal, and soybean oil also improved with bean meal notching a marketing year high. Wheat and rice exports were both down on the week and lower than average. U.S. pork and beef sales started the year with decent numbers, but while China did buy U.S. beef last week, it passed on pork. The USDA’s next set of supply and demand estimates is out February 9^th.

Physical shipments of corn and soybeans were above what’s needed to meet projections for the current marketing year. The 2020/21 marketing year started June 1^st for wheat, August 1^st for cotton and rice, September 1^st for beans, corn, and sorghum, and October 1^st for soybean products. The marketing year for beef and pork is the calendar year.

Wheat came out at 221,900 tons (8.2 million bushels), down 19% from the week ending December 31^st, 2020 and 49% from the four-week average. Bangladesh purchased 55,000 tons and Mexico bought 46,200 tons. Just over seven months into the 2020/21 marketing year, wheat sales are 773.8 million bushels, compared to 719.6 million in 2019/20. Sales of 10,100 tons (400,000 bushels) for 2021/22 delivery were mainly to Guatemala (6,100 tons).

Corn was reported at 1,437,700 tons (56.6 million bushels), up 92% from the previous week and 34% from the four-week average. Japan picked up 401,500 tons and unknown destinations purchased 334,500 tons. Roughly a third of the way through the marketing year, corn sales are 1.787 billion bushels, compared to 759.9 million this time last year.

Sorghum sales were 190,900 tons (7.5 million bushels), a solid improvement from the week before and 76% higher than the four-week average. Unknown destinations bought 120,000 tons and China picked up 70,900 tons. For the marketing year to date, sorghum sales are 207.8 million bushels, compared to 44.5 million a year ago.

Rice sales were 12,900 tons, 66% lower than the prior week and 86% below the four-week average. Canada purchased 3,600 tons and Jordan bought 2,800 tons. Rice exports are 1,900,800 tons, compared to 2,202,500 last year.

Soybeans were pegged at 908,000 tons (33.4 million bushels), a strong increase on the week and 93% above the four-week average. China picked up 758,300 tons and Spain purchased 143,000 tons, but unknown destinations canceled on 586,300 tons. So far, this marketing year, soybean sales are 2.046 billion bushels, compared to 1.118 billion a year ago. Sales of 326,000 tons (12.0 million bushels) for 2021/22 delivery were to unknown destinations (260,000 tons) and China (66,000 tons).

Soybean meal came out at 337,400 tons, a big jump from the previous week and 97% larger than the four-week average. El Salvador bought 82,000 tons and Vietnam picked up 49,900 tons. At this point in the marketing year, soybean meal sales are 6,287,500 tons, compared to 5,988,000 last year. Sales of 60,000 tons for 2021/22 delivery were to unknown destinations.

Soybean oil was reported at 11,100 tons, quite a bit more than the week before, but 52% less than the four-week average. Unknown destinations purchased 8,500 tons and Mexico bought 2,500 tons. Cumulative soybean oil sales are 502,200 tons, compared to 464,400 a year ago.

Upland cotton was pegged at 326,000 bales, a significant gain from the prior week and 2% more than the four-week average. China picked up 151,200 bales and Pakistan purchased 56,600 bales. 2020/21 upland cotton exports are 11,864,200 bales, compared to 11,859,400 in 2019/20. Sales of 50,300 bales for 2021/22 delivery were primarily to Malaysia (22,000 bales) and Guatemala (13,200 bales).

Net beef sales totaled 16,800 tons. The reported buyers were South Korea (4,900 tons), Japan (4,100 tons), China (2,800 tons), Mexico (1,300 tons), and Taiwan (800 tons). Shipments of 14,200 tons were mostly to Japan (4,200 tons), South Korea (4,000 tons), China (1,600 tons), Mexico (1,400 tons), and Taiwan (900 tons).

Net pork sales totaled 23,800 tons. The listed purchasers were Mexico (6,600 tons), Japan (3,400 tons), South Korea (3,300 tons), Colombia (2,400 tons), and the Philippines (2,400 tons), with a net cancellation by Australia (100 tons). Shipments of 30,000 tons were mainly to China (11,500 tons), Mexico (6,900 tons), Japan (3,300 tons), South Korea (2,300 tons), and Canada (1,500 tons).