News

Pork sales surge while corn hits marketing year low

The USDA says pork export sales showed a big improvement during the week ending February 25^th, while corn hit a marketing year low. Pork sales were nearly 60,000 tons, up sharply on the week, with China buying nearly half of the total and Mexico purchasing about a quarter. Corn fell 74% on the week following a cancellation of more than 1.75 million tons by unknown destinations. Soybeans were up solidly from the previous week’s marketing year low but fell below the four-week average with no new sales to China and a cancellation by unknown destinations. Beef, wheat, soybean product, and rice export sales were all up on the week, while cotton declined and sorghum had a net reduction. The USDA’s next set of supply and demand estimates is out on Tuesday the 9^th at Noon Eastern/11 Central.

Old and new crop corn fell below pre-report expectations, while soybeans, soybean products, and wheat were within analysts’ estimates. Physical shipments of corn and soybeans were more than what’s needed to meet USDA projections for the current marketing year. The 2020/21 marketing year started June 1^st for wheat, August 1^st for cotton and rice, September 1^st for beans, corn, and sorghum, and October 1^st for soybean products.

Wheat came out at 219,200 tons (8.1 million bushels), up 31% from the week ending February 18^th, but down 51% from the four-week average. Mexico purchased 69,300 tons and China bought 65,900 tons, while unknown destinations canceled on 55,000 tons. Just outside of the final quarter of the 2020/21 marketing year, wheat sales are 874.2 million bushels, compared to 851.7 million in 2019/20. Sales of 23,500 tons (900,000 bushels) for 2021/22 delivery were to Haiti.

Corn was reported at 115,900 tons (4.6 million bushels), 74% lower than the previous week and 96% below the four-week average. China picked up 1,054,700 tons and Mexico purchased 181,900 tons, but unknown destinations canceled on 1,764,900 tons. Closing in on the halfway point of the marketing year, corn sales are 2.328 billion bushels, compared to 1.049 billion this time last year. Sales of 38,800 tons (1.5 million bushels) for 2021/22 delivery were to Mexico (26,800 tons) and Japan (12,000 tons).

Sorghum had a net reduction of 52,200 tons (-2.1 million bushels) following a cancellation by China. Sorghum exports are 231.4 million bushels, compared to 68.5 million a year ago.

Rice sales were 92,300 tons, 14% higher than the week before and 22% above the four-week average. Mexico bought 35,300 tons and Venezuela picked up 31,500 tons. Rice exports are 2,511,800 tons, compared to 2,713,300 last year.

Soybeans were pegged at 334,000 tons (12.3 million bushels), quite a bit more than the prior week, but 33% less than the four-week average. Mexico purchased 139,700 tons and Germany bought 137,700 tons, but unknown destinations canceled on 351,400 tons. So far, this marketing year, soybean sales are 2.210 billion bushels, compared to 1.250 billion a year ago. Sales of 199,400 tons (7.3 million bushels) were to China (198,000 tons) and Canada (1,400 tons).

Soybean meal came out at 187,400 tons, an increase of 17% on the week, but a decrease of 28% from the four-week average. The Philippines picked up 49,000 tons and Mexico purchased 37,400 tons, while unknown destinations canceled on 27,700 tons. For the marketing year to date, soybean meal sales are 8,132,500 tons, compared to 8,159,200 last year.

Soybean oil was reported at 5,500 tons, up 25% from the previous week and 16% from the four-week average. Guatemala bought 5,400 tons and El Salvador picked up 1,000 tons, while Colombia canceled on 900 tons. Cumulative soybean oil sales are 598,000 tons, compared to 732,600 a year ago.

Upland cotton was pegged at 169,000 bales, down 32% from the week before and 27% from the four-week average. Vietnam purchased 65,300 bales and Pakistan bought 33,600 bales, while Turkey canceled on 23,900 bales. 2020/21 upland cotton exports are 13,577,700 bales, compared to 14,042,900 in 2019/20. Sales of 40,600 bales for 2021/22 delivery were mainly to Vietnam (15,500 bales) and China (13,200 bales).

Net beef sales totaled 22,600 tons, a solid rise from the prior week and 15% above the four-week average. The listed buyers were South Korea (6,800 tons), China (4,500 tons), Japan (3,800 tons), Taiwan (2,400 tons), and Mexico (2,000 tons), with a cancellation by the Philippines (100 tons). Shipments of 19,700 tons were up 30% from the prior week and 20% from the four-week average, primarily to Japan (5,700 tons), South Korea (5,000 tons), China (3,100 tons), Mexico (1,700 tons), and Taiwan (1,100 tons).

Net pork sales totaled 59,600 tons, a big jump on the week and 68% larger than the four-week average. The reported purchasers were China (28,000 tons), Mexico (14,500 tons), Japan (4,600 tons), Canada (2,700 tons), and South Korea (2,200 tons). Shipments of 40,000 tons were 13% higher than the previous week and 6% more than the four-week average, mostly to China (13,400 tons), Mexico (9,100 tons), Japan (4,600 tons), South Korea (2,500 tons), and Canada (2,100 tons).