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Cancellations hit old crop soybean export sales

 

The USDA reports combined old and new crop soybean and soybean meal exports for the week ending May 17th were towards the low end of pre-report estimates, while corn and wheat were near the high end of what analysts were anticipating. Physical shipments of sorghum remain ahead of what’s needed weekly to meet USDA projections for the 2017/18 marketing year. The current marketing year runs through May for wheat, August for beans, corn, and sorghum, and September for soybean products.

Wheat came out at 112,300 tons (4.1 million bushels), up 78% from the week ending May 10th, but down 29% from the four-week average. South Korea purchased 75,200 tons and Guatemala bought 22,000 tons, while unknown destinations canceled on 32,300 tons. With the 2017/18 marketing year drawing to a close, wheat sales are 871.3 million bushels, compared to 1.044 billion late in 2016/17. Sales of 340,000 tons (12.5 million bushels) for 2018/19 delivery were mainly to Taiwan (85,800 tons) and Japan (55,400 tons).

Corn was reported at 854,300 tons (33.6 million bushels), 13% lower than the previous week, but 3% higher than the four-week average. Japan picked up 326,900 tons and South Korea purchased 223,300 tons, but unknown destinations canceled on 318,400 tons. At this point in the marketing year, corn sales are 2.105 billion bushels, compared to 2.097 billion this time last year. Sales of 273,400 tons (10.8 million bushels) for 2018/19 delivery were primarily to Japan (188,000 tons) and Vietnam (60,000 tons).

Sorghum sales were 29,800 tons (1.2 million bushels). Unknown destinations bought 20,000 tons and South Africa picked up 9,000 tons. Cumulative sorghum sales are 212.2 million bushels, compared to 169.6 million a year ago.

Soybeans had a net reduction of 139,500 tons (-5.1 million bushels), considerably smaller than both the week before and the four-week average. Pakistan purchased 248,000 tons and Bangladesh bought 173,100 tons, but unknown destinations canceled on 894,500 tons. So far, this marketing year, soybean sales are 2.028 billion bushels, compared to 2.125 billion last year. Sales of 6,900 tons (300,000 bushels) for 2018/19 delivery occurred after sales ranging from 5,000 to 1,000 tons were partially offset following a cancellation on 8,000 tons by unknown destinations.

Soybean meal came out at 239,500 tons, 36% less than the prior week, but 2% more than the four-week average. The Philippines picked up 134,800 tons and Canada purchased 25,700 tons. For the marketing year to date, soybean meal sales are 10,767,200 tons, compared to 9,458,100 a year ago. Net reductions of 42,600 tons for 2018/19 delivery happened after sales to Japan (1,400 tons) and Canada (1,000 tons) were more than offset by a cancellation from the Philippines (45,000 tons).

Soybean oil was reported at 17,700 tons, a jump of 74% from the previous week, but a decline of 36% from the four-week average. South Korea bought 15,100 tons and the Dominican Republic picked up 8,900 tons, but Malaysia canceled on 15,000 tons. 2017/18 soybean oil sales are 872,000 tons, compared to 886,500 in 2016/17.

Net beef sales totaled 9,900 tons, a decrease of 10% on the week and 31% from the four-week average. The listed purchasers were Taiwan (2,000 tons), South Korea (1,700 tons), Japan (1,600 tons), Canada (1,400 tons), and Mexico (1,000 tons). Canada bought 300 tons for 2019 delivery.

Net pork sales of 20,600 tons were down 6% from the prior week and basically unchanged from the four-week average. The reported buyers were Mexico (9,200 tons), Japan (3,200 tons), Australia (2,300 tons), Canada (1,900 tons), and Taiwan (1,100 tons).