News

South Korea big weekly buyer for beef, pork

China made a few minor appearances in the weekly export sales report. The USDA says that during the week ending August 15th, China bought 50,000 tons of old crop U.S. sorghum along with 66,000 tons of new crop soybeans but canceled on upland and American Pima cotton.

Mexico was the big weekly buyer of corn, wheat, and soybean products, while South Korea was the leading purchaser of beef and pork and Germany topped list for soybeans. The USDA’s next set of supply and demand estimates is out September 12th.

Overall, wheat export sales were larger than anticipated, soybean meal was within pre-report projections and corn, soybeans, and soybean oil were below analysts’ estimates. Physical shipments of soybeans wheat were ahead of what’s needed weekly to meet USDA expectations, but corn and sorghum fell short of the mark. The 2019/20 marketing year for wheat got underway June 1st, while 2018/19 runs through the end of August for beans, corn, and sorghum and the end of September for soybean products.

Wheat came out at 594,600 tons (21.8 million bushels), up 29% from the week ending August 8th and 19% higher than the four-week average. Mexico purchased 113,800 tons and Guatemala bought 60,500 tons. Less than a quarter into the 2019/20 marketing year, wheat sales are 382.9 million bushels, compared to 314.4 million in 2018/19. Sales of 4,900 tons (200,000 bushels) for 2020/21 delivery were Peru (4,200 tons) and unknown destinations (700 tons).

Corn was reported at 119,300 tons (4.7 million bushels), a jump from the previous week and 31% more than the four-week average. Mexico picked up 96,900 tons and Japan purchased 61,700 tons, but unknown destinations canceled on 60,800 tons. With just a couple of weeks remaining in the 2018/19 marketing year, corn sales are 1.973 billion bushels, compared to 2.377 billion late in 2017/18. Sales of 301,600 tons (11.9 million bushels) for 2019/20 delivery were mainly to Mexico (155,400 tons) and South Korea (65,200 tons).

Sorghum had a net reduction of 2,900 tons (-100,000 bushels). China bought 50,000 tons, including 53,000 tons switched from unknown destinations and a cancellation on 3,000 tons, and South Korea picked up 100 tons. For the marketing year to date, sorghum sales are 67.9 million bushels, compared to 200.3 million a year ago. Sales of 10,200 tons (400,000 bushels) for 2019/20 delivery were to Japan.

Rice sales were 69,000 tons. Nicaragua purchased 40,000 tons and Costa Rica bought 14,200 tons, while Guatemala canceled on 2,300 tons. Two weeks into the marketing year, rice sales are 802,200 tons, compared to 451,500 at the outset of last marketing year.

Soybeans were pegged at 25,900 tons (1.0 million bushels). Germany picked up 68,500 tons and Indonesia purchased 56,000 tons, but unknown destinations canceled on 169,000 tons. So far, this marketing year, soybean sales are 1.786 billion bushels, compared to 2.159 billion this time last year. Sales of 792,600 tons for 2019/20 delivery were primarily to unknown destinations (421,000 tons) and Mexico (111,500 tons).

Soybean meal came out at 118,600 tons, 9% below the week before, but 12% above the four-week average. Mexico bought 48,300 tons and Venezuela picked up 27,500 tons. Cumulative soybean meal sales are 11,925,200 tons, compared to 12,451,200 a year ago. Sales of 13,400 tons for 2019/20 delivery were mostly to Honduras (6,200 tons) and Jamaica (4,000 tons), with a cancellation by Costa Rica (5,800 tons).

Soybean oil was reported at 2,200 tons, an increase of 62% on the week, but a decrease of 83% from the four-week average. Mexico purchased 1,500 tons and El Salvador bought 600 tons. 2018/19 soybean oil sales are 879,200 tons, compared to 1,037,000 in 2017/18.

Upland cotton exports were 164,000 running bales. Indonesia picked up 50,400 bales and Vietnam purchased 36,100 bales, while Hong Kong canceled on 8,600 bales. 2019/20 cotton sales are 7,938,700 bales, compared to 8,510,900 early in 2018/19. Net upland sales of 500 bales for 2020/21 delivery occurred after Japan bought 1,200 bales and Bangladesh canceled on 500. American Pima had a net reduction of 5,100 bales, with sales of 200 to 900 bales more than offset by a cancellation on 6,700 bales by China.

Net beef sales totaled 17,300 tons, up 7% from the previous week and 17% higher than the four-week average. The reported buyers were South Korea (5,400 tons), Japan (4,200 tons), Hong Kong (3,200 tons), Mexico (1,500 tons), and Taiwan (1,100 tons), with a net cancellation by Panama (100 tons).

Net pork sales totaled 18,500 tons, 9% less than the prior week, but 16% more than the four-week average. The listed purchasers were South Korea (3,900 tons), Mexico (3,800 tons), Japan (3,400 tons), Canada (2,000 tons), and Colombia (2,000 tons). Net sales of 100 tons for 2020 delivery were to Japan.