News

Soybean exports strong, but a new low for beef sales

The USDA reports combined old and new crop soybean export sales for the week ending July 19th were larger than what most analysts were expecting, while corn and wheat were within pre-report estimates. Physical shipments of beans, corn, and wheat continue to trail the respective previous marketing years. The 2018/19 marketing year for wheat got underway June 1st, while 2017/18 continues through August for corn, sorghum, and soybeans, and September for soybean products.

Wheat came out at 385,900 tons (14.2 million bushels), up 29% from the week ending July 12th and 7% higher than the four-week average. Unknown destinations purchased 100,800 tons and South Korea bought 80,500 tons, while Argentina canceled on 30,000 tons. Still early in the 2018/19 marketing year, wheat sales are 250.4 million bushels, compared to 364.4 million in 2017/18.

Corn was reported at 338,500 tons (13.3 million bushels), down 47% from the previous week and 42% lower than the four-week average. Mexico picked up 110,800 tons and South Korea purchased 72,000 tons, but Argentina canceled on 80,000 tons. With about a month and a half remaining in 2017/18, corn sales are 2.326 billion bushels, compared to 2.217 billion late in 2016/17. Sales of 747,500 tons (29.4 million bushels) for 2018/19 delivery were mainly to Mexico (249,900 tons) and unknown destinations (125,400 tons).

Sorghum exports of 1,000 tons were to Japan. Cumulative sorghum sales this marketing year are 198.6 million bushels, compared to 183.9 million last marketing year.

Soybeans were pegged at 538,100 tons (19.8 million bushels), a big jump from the week before and 69% larger than the four-week average. The Netherlands bought 143,300 tons and Egypt picked up 141,400 tons, while unknown destinations canceled on 134,000 tons. At this point in the marketing year, soybean sales are 2.138 billion bushels, compared to 2.224 billion a year ago. Sales of 963,800 tons (35.4 million bushels) for 2018/19 delivery were primarily to unknown destinations (406,200 tons) and Pakistan (234,500 tons).

Soybean meal came out at 166,400 tons, 27% more than the prior week and 49% above the four-week average. Vietnam purchased 69,100 tons and Thailand bought 58,600 tons, but unknown destinations canceled on 59,500 tons. So far, this marketing year, soybean meal sales are 11,842,900 tons, compared to 10,055,000 last year. Sales of 37,600 tons for 2018/19 delivery were mostly to Jamaica (13,000 tons) and unknown destinations (12,500 tons).

Old crop soybean oil had a net reduction of 4,400 tons, with sales ranging from 800 to 5,300 tons more than offset by cancellations of 800 to 10,000 tons. 2017/18 soybean oil sales are 1,001,900 tons, compared to 1,042,000 in 2016/17. Sales of 5,400 tons for 2018/19 delivery were mainly to the Dominican Republic (2,300 tons) and South Korea (2,000 tons).

Net beef sales were 4,700 tons, a new marketing year low, down 65% on the week and 69% lower than the four-week average. The listed buyers were South Korea (2,900 tons), Canada (1,200 tons), Mexico (900 tons), Hong Kong (800 tons), and Vietnam (800 tons), with a cancellation by Japan (3,900 tons). Sales of 200 tons for 2019 delivery were to Japan (100 tons) and South Korea (100 tons).

Net pork sales totaled 21,100 tons, up 7% from the previous week and 21% higher than the four-week average. The reported purchasers were Mexico (6,400 tons), South Korea (4,500 tons), Japan (3,900 tons), Canada (2,600 tons), and Australia (2,000 tons). Sales of 600 tons for 2019 delivery were to South Korea.