A big week for pork and soybean export sales

Farmer Standing in a Field

Pork export sales hit a marketing-year high last week. The USDA says the total for the week ending October 1st of 60,200 tons were up more than 50% from the four-week average, with China buying 29,000 tons, a possible sign of significant demand improvement as Germany remains out of the export market because of an African swine fever outbreak in wild boars.

China also bought more than 4,000 tons of U.S. beef, more than 1.5 million tons of U.S. soybeans, more than 215,000 tons of U.S. sorghum, and more than 25,000 bales of U.S. cotton. Wheat sales were up on the week, corn was down, and rice hit a new marketing year high for the second week in a row. The next export sales report is out on the 16th, delayed a day by Columbus Day.

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

Wheat came out at 530,600 tons (19.5 million bushels), up 5% from the week ending September 24th and 27% higher than the four-week average. The Philippines purchased 202,900 tons and Mexico bought 96,300 tons. For the 2020/21 marketing year to date, wheat sales are 533.5 million bushels, compared to 493.3 million in 2019/20. Sales of 37,400 tons (1.4 million bushels) for 2021/22 delivery were to Brazil (40,000 tons) with cancellation by Malaysia (2,600 tons).

Corn was reported at 1,225,700 tons (48.3 million bushels). Japan picked up 360,100 tons and Mexico purchased 332,700 tons, while Taiwan canceled on 71,800 tons. About a month into the marketing year, corn sales are 1.018 billion bushels, compared to 393.5 million this time last year.

Sorghum sales were a net of 132,400 tons (5.2 million bushels). China bought 215,400 tons but unknown destinations canceled on 83,000 tons. The running total for the marketing year is 115.5 million bushels, compared to 5.9 million a year ago.

Rice export sales were 258,100 tons, more than double the previous week and larger than the four-week average. Mexico picked up 88,400 tons and Venezuela purchased 60,000 tons. A couple of months into the marketing year, rice sales are 1,009,500 tons, compared to 1,334,100 last year.

Soybeans were pegged at 2,590,700 tons (95.2 million bushels). China bought 1,538,100 tons and Mexico picked up 183,300 tons. So far, this marketing year, soybean sales are 1.496 billion bushels, compared to 597.1 million a year ago.

2020/21 soybean meal sales were 271,700 tons. Mexico purchased 117,800 tons and Colombia bought 36,400 tons. New crop soybean meal sales are 3,467,000 tons, compared to 3,463,100 last year. 309,600 tons of outstanding sales were carried over from the 2019/20 marketing year and exports for the period ending September 30th were 216,300 tons, bringing the 2019/20 total to 11,818,300 tons, up 3% from 2018/19.

2020/21 soybean oil sales were 4,600 tons. Guatemala picked up 3,000 tons and Jamaica purchased 500 tons. New crop soybean oil sales are 176,800 tons, compared to 195,900 a year ago. 49,300 tons were carried over from the 2019/20 marketing year and exports for the period ending September 30th were 15,600 tons, bringing the 2019/20 total to 1,234,600 tons, up 54% from 2018/19.

Upland cotton was reported at 178,400 bales, down 24% from the week before and 27% less than the four-week average. Vietnam bought 125,500 bales and China picked up 26,700 bales, while Bangladesh canceled on 14,000 bales. Cumulative upland cotton sales are 8,134,400 bales, compared to 8,929,200 last year. Sales of 15,000 bales for 2021/22 delivery were to Bangladesh (13,200 bales) and Costa Rica (1,800 bales).

Net beef sales totaled 20,700 tons, a decrease of 16% on the week, but an increase of 14% from the four-week average. The listed purchasers were South Korea (5,800 tons), China (4,100 tons), Japan (3,700 tons), Hong Kong (3,100 tons), and Taiwan (1,100 tons). Shipments of 16,900 tons were up 2% from the previous week and 5% from the four-week average, mainly to Japan (4,500 tons), South Korea (3,800 tons), Hong Kong (1,600 tons), China (1,500 tons), and Taiwan (1,400 tons). Sales of 2,200 tons for 2021 delivery were primarily to Japan (1,400 tons) and Canada (500 tons).

Net pork sales totaled 60,200 tons, 52% higher than both the week before and the four-week average. The reported buyers were China (29,000 tons), Mexico (16,400 tons), Canada (4,500 tons), Japan (2,400 tons), and South Korea (2,000 tons). Shipments of 36,800 tons were 13% larger than the prior week and the four-week average, mostly to Mexico (11,200 tons), China (10,600 tons), Japan (4,300 tons), Canada (2,500 tons), and South Korea (2,200 tons). Sales of 500 tons for 2021 delivery were mainly to Canada (300 tons) and Australia (100 tons).