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USDA: China buys U.S. soybeans, pork

China bought U.S. pork and soybeans last week. The USDA says Beijing purchased 31,400 tons of pork and 71,000 tons of beans, with delivery scheduled for the current respective marketing years. Trade talks between the U.S. and China have reportedly stalled, but this could be viewed as a positive for negotiations in general.

Overall, combined old and new crop corn, soybean, wheat, and soybean product export sales for the week ending May 16th were within analysts’ estimates. The 2018/19 marketing year runs through the end of May for wheat, the end of August for beans, corn, and sorghum, and the end of September for soybean products.

Old crop wheat was a new marketing year low at 48,400 tons (1.8 million bushels), down 58% from the week ending May 9th and 74% lower than the four-week average. Indonesia purchased 129,900 tons and Taiwan bought 30,700 tons, but unknown destinations canceled on 249,000 tons. Nearing the end of the 2018/19 marketing year, wheat sales are 944.9 million bushels, compared to 871.3 million late in 2017/18. Sales of 344,900 tons (12.7 million bushels) for 2019/20 delivery were mainly to unknown destinations (196,000 tons) and Japan (62,000 tons).

Corn was reported at 442,100 tons (17.4 million bushels), 20% less than both the previous week and the four-week average. Japan picked up 185,800 tons and unknown destinations purchased 42,600 tons. At this point in the marketing year, corn sales are 1.864 billion bushels, compared to 2.105 billion this time last year. Sales of 183,900 tons (7.2 million bushels) for 2019/20 delivery were primarily to Panama (65,000 tons) and Costa Rica (33,500 tons).

Sorghum had a net reduction of 3,800 tons (-100,000 bushels). Mexico bought 11,500 tons, but Japan canceled on 15,300 tons. For the marketing year to date, sorghum sales are 63.4 million bushels, compared to 212.2 million a year ago.

Soybeans were pegged at 535,800 tons (19.7 million bushels), up 45% from the week before and significantly higher than the four-week average. Unknown destinations picked up 255,500 tons and Indonesia purchased 78,000 tons. So far, this marketing year, soybean sales are 1.682 billion bushels, compared to 2.028 billion last year. Sales of 5,100 tons (200,000 bushels) for 2019/20 delivery were mostly to Thailand (2,500 tons) and Japan (1,800 tons).

Soybean meal came out at 188,000 tons, 4% below the prior week and unchanged from the four-week average. Mexico bought 29,400 tons and Honduras picked up 23,800 tons. Cumulative soybean meal sales are 10,711,300 tons, compared to 10,767,200 a year ago. Sales of 112,000 tons for 2019/20 delivery were mainly to Mexico (63,000 tons), and Panama (18,000 tons), while Jamaica canceled on 8,000 tons.

Soybean oil sales were 9,100 tons, down 16% from the previous week and 33% lower than the four-week average. South Korea purchased 5,000 tons and El Salvador bought 1,500 tons. 2018/19 soybean oil sales are 706,000 tons, compared to 872,000 in 2017/18.

Net beef sales totaled 24,400 tons, an increase of 44% on the week and 30% more than the four-week average. The listed purchasers were South Korea (9,100 tons), Japan (5,900 tons), Mexico (2,400 tons), Hong Kong (2,200 tons), and Canada (1,700 tons), with a cancellation by Chile (100 tons).

Net pork sales totaled 46,300 tons, a big jump from both the prior week and the four-week average. The reported buyers were China (31,400 tons), Mexico (5,700 tons), Japan (2,600 tons), South Korea (2,300 tons), and Canada (1,500 tons).