Corn and wheat export sales hit marketing year lows

Shipping Dock or Export (cargo ship being loaded)

The USDA says export sales numbers for most major commodities declined during the week ending February 18th.  Corn and wheat were driven to new marketing year lows following cancellations by unknown destinations, possibly China, while soybean sales dropped also following cancellations by an unknown destination. China also canceled on U.S. beef and while it was a net purchaser of U.S. pork, total sales were lower than average. China did push cotton sales sharply higher than the week before and soybean oil was up modestly on the week thanks to solid global vegetable oil demand. The USDA’s next set of supply and demand estimates is out on March 9th.

Physical shipments of soybeans were more than 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 167,700 tons (6.2 million bushels), down 58% from the week ending February 11th and 67% from the four-week average. Bangladesh purchased 55,000 tons and Mexico bought 53,500 tons, but unknown destinations canceled on 83,000 tons. Nearing the final quarter of the 2020/21 marketing year, wheat sales are 866.1 million bushels, compared to 831.8 million in 2019/20. Sales of 14,800 tons (500,000 bushels) for 2021/22 delivery were to unknown destinations (14,500 tons) and Hong Kong (300 tons).

Corn was reported at 453,300 tons (17.8 million bushels), 55% lower than the previous week and 85% below the four-week average. Peru picked up 160,300 tons and Vietnam purchased 146,200 tons, but unknown destinations canceled on 300,500 tons. Closing in on the halfway point of the marketing year, corn sales are 2.323 billion bushels, compared to 1.019 billion a year ago. Sales of 145,900 tons (5.7 million bushels) for 2021/22 delivery were to Mexico (90,000 tons) and Japan (55,900 tons.

Sorghum had a net reduction of 700 tons. Sorghum exports are 233.5 million bushels, compared to 65.6 million this time last year.

Rice sales were 81,100 tons, a decline of 19% from the week before and 12% from the four-week average. Japan bought 48,700 tons and Venezuela picked up 18,300 tons, while Mexico canceled on 8,700 tons. Rice exports are 2,419,600 tons, compared to 2,675,100 a year ago.

Soybeans were pegged at 167,900 tons (2.203 billion bushels), a decrease of 63% from the prior week and 72% from the four-week average. The Netherlands purchased 139,100 tons and Japan bought 77,700 tons, but unknown destinations canceled on 300,800 tons. So far, this marketing year, soybean sales are 2.203 billion bushels, compared to 1.238 billion last year. Sales of 70,800 tons (2.6 million bushels) for 2021/22 delivery were to China (66,000 tons) and Japan (4,800 tons).

Soybean meal was reported at 160,200 tons, a loss of 50% on the week and 38% from the four-week average. The Philippines picked up 47,300 tons and Honduras purchased 44,700 tons, while unknown destinations canceled on 17,000 tons. For the marketing year to date, soybean meal sales are 7,945,200 tons, compared to 7,842,500 a year ago.

Soybean oil came out at 4,400 tons, 1% more than the previous week, but 48% less than the four-week average. Venezuela bought 1,500 tons and the Dominican Republic picked up 1,000 tons. Cumulative soybean oil sales are 592,500 tons, compared to 689,000 last year.

Upland cotton was pegged at 247,800 bales, up sharply from the week before, but down 1% from the four-week average. China purchased 59,500 bales and Turkey bought 45,000 bales. 2020/21 upland cotton exports are 13,408,600 bales, compared to 13,647,400 in 2019/20. Sales of 40,700 bales for 2021/22 delivery were to Mexico (61,000 bales) with cancellation by China (20,200 bales).

Net beef sales totaled 8,500 tons, a drop of 63% from the prior week and 66% from the four-week average. The reported buyers were South Korea (3,800 tons), Japan (3,100 tons), Mexico (700 tons), Canada (500 tons), and Taiwan (300 tons), with cancellation by China (1,000 tons). Shipments of 15,100 tons were mainly to South Korea (4,800 tons), Japan (3,900 tons), China (1,900 tons), Mexico (1,300 tons), and Taiwan (1,000 tons).

Net pork sales totaled 25,600 tons, a decline of 23% on the week and 40% from the four-week average. The listed purchasers were Mexico (7,300 tons), Japan (4,100 tons), China (3,700 tons), South Korea (3,200 tons), and the Philippines (2,100 tons), with cancellations by El Salvador (400 tons) and Singapore (100 tons). Shipments of 35,300 tons were primarily to China (11,900 tons), Mexico (8,900 tons), Japan (4,200 tons), Canada (2,100 tons), and Colombia (1,900 tons).

 

Photo by Nilantha Ilangamuwa on Unsplash