Mexico continues to be a driver of export demand for U.S. pork. The USDA says more than 30,000 tons of U.S. pork were sold during the week ending January 16th, more than a third of that to Mexico, and while purchases by China continue to fall short of expectations, physical shipments were strong at nearly 17,000 tons. Weekly beef exports were almost 28,000 tons, primarily to South Korea and Japan. Japan was the leading buyer of corn, China topped the list for soybeans, and soybean meal exports were a new marketing year high. The USDA’s next set of supply and demand estimates is out February 11th.
Corn and soybean product sales were above expectations, while soybeans and wheat were within analysts’ estimates. Physical shipments of soybeans and wheat were above 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 cotton and rice, September 1st for beans, corn, and sorghum, and October 1st for soybean products.
Wheat came out at 696,000 tons (25.6 million bushels), up 7% from the week ending January 9th and 58% higher than the four-week average. Bangladesh purchased 111,900 tons and Japan bought 96,200 tons. For the 2019/20 marketing year to date, wheat sales are 745.2 million bushels, compared to 658.0 million in 2018/19. Sales of 46,000 tons (1.7 million bushels) for 2020/21 delivery were to unknown destinations.
Corn was reported at 1,006,900 tons (39.6 million bushels), 28% more than the previous week and 92% larger than the four-week average. Japan picked up 372,600 tons and Mexico purchased 269,900 tons. More than a third of the way through the marketing year, corn sales are 799.5 million bushels, compared to 1.271 billion this time last year. Sales of 2,000 tons (100,000 bushels) for 2020/21 delivery were to Nicaragua.
Sorghum exports were 11,100 tons (400,000 bushels), all to Japan. Sales this marketing year are 44.9 million bushels, compared to 18.8 million a year ago.
Rice sales were 78,600 tons, a significant jump from the week before and 82% above the four-week average. South Korea bought 30,800 tons and Mexico picked up 26,400 tons. About halfway through the marketing year, rice exports are 2,293,100 tons, compared to 1,907,500 last year.
Soybeans were pegged at 790,000 tons (29.0 million bushels), up 23% from the prior week and 59% higher than the four-week average. China purchased 225,900 tons and Mexico bought 218,900 tons, but unknown destinations canceled on 256,900 tons. So far, this marketing year, soybean sales are 1.147 billion bushels, compared to 1.116 billion a year ago. Sales of 120,700 tons (4.4 million bushels) for 2020/21 delivery were to unknown destinations (120,000 tons) and Japan (700 tons).
Soybean meal came out at 641,900 tons, a rise of 71% from the previous week and a noticeable increase from the four-week average. The Philippines picked up 184,500 tons and Mexico purchased 82,300 tons. Cumulative soybean meal sales are 6,629,900 tons, compared to 6,909,700 last year.
Soybean oil was reported at 55,600 tons. Unknown destinations bought 19,000 tons and South Korea picked up 13,400 tons. At this point in the marketing year, soybean oil sales are 520,000 tons, compared to 405,900 a year ago.
Upland cotton sales were 307,800 bales, 32% more than the prior week and 61% above the four-week average. Turkey purchased 82,700 bales and Pakistan bought 72,200 bales, while India canceled on 25,000 bales. 2019/20 upland cotton exports are 12,167,200 bales, compared to 10,878,800 last year. Sales of 13,200 bales for 2020/21 delivery were to Vietnam.
Net beef sales totaled 27,800 tons. The listed purchasers were South Korea (9,700 tons), Japan (8,200 tons), Mexico (3,000 tons), Taiwan (2,000 tons), and Hong Kong (1,800 tons).
Net pork sales totaled 30,300 tons. The reported buyers were Mexico (10,400 tons), Japan (4,900 tons), Canada (3,400 tons), China (3,000 tons), and South Korea (2,600 tons). Sales of 300 tons for 2021 delivery were to South Korea.