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Big week for pork export sales to Mexico

Demand from Mexico drove U.S. pork export sales during the week ending July 22nd. The USDA says the weekly total was more than 40% above average, with about two thirds of that to Mexico. Beef export sales were down modestly on the week, all to either South Korea, Japan, or China. Old crop corn and soybean export sales were bearish due to heavy competition and relatively high prices, but new crop sales were good. The USDA’s next set of supply and demand estimates is out August 12th.

The 2021/22 marketing year started June 1st, 2021 for wheat, while 2020/21 got underway August 1st, 2020 for cotton and rice, September 1st, 2020 for beans, corn, and sorghum, and October 1st, 2020 for soybean products. The marketing year for beef and pork is the calendar year.

Wheat came out at 515,200 tons (18.9 million bushels), up 9% from the week ending July 15th and 46% from the four-week average. China purchased 128,900 tons and Mexico bought 85,600 tons. About two months into the 2021/22 marketing year, wheat sales are 297.8 million bushels, compared to 349.7 million in 2020/21. A net reduction of 5,000 tons (-200,000 bushels) for 2022/23 delivery followed a cancellation by unknown destinations.

Corn had a net reduction of 115,200 tons (-4.5 million bushels). Japan picked up 36,300 tons and Venezuela purchased 30,000 tons, but China and unknown destinations canceled on 119,300 and 71,600 tons, respectively. With just over a month remaining in the 2020/21 marketing year, corn sales are 2.742 billion bushels, compared to 1.720 billion late in 2019/20. Sales of 529,300 tons (20.8 million bushels) for 2021/22 delivery were mainly to Mexico (172,000 tons) and unknown destinations (150,000 tons).

Sorghum sales were 2,000 tons (100,000 bushels). China bought 69,000 tons and Mexico picked up 1,000 tons, but unknown destinations canceled on 68,000 tons. Sorghum exports are 282.7 million bushels, compared to 171.8 million this time last year.

Rice sales of 10,700 tons were down 85% from the previous week and 64% from the four-week average. Mexico purchased 6,900 tons and Canada bought 2,200 tons. With just a handful of reporting days left in the marketing year, rice exports are 3,439,100 tons, compared to 3,386,300 a year ago. Sales of 91,800 tons for 2021/22 delivery were primarily to Iraq (80,000 tons) and Guatemala (7,500 tons).

Soybeans had a net reduction of 79,300 tons (2.9 million bushels). Taiwan picked up 12,800 tons and Mexico purchased 5,800 tons, but those were offset by cancellations of 74,800 and 51,500 tons, by Japan and unknown destinations, respectively. So far, this marketing year, soybean sales are 2.275 billion bushels, compared to 1.1725 billion last marketing year. Sales of 312,800 tons (11.5 million bushels) for 2021/22 delivery were mostly to Mexico (160,500 tons) and China (121,000 tons), with a cancellation by unknown destinations (64,000 tons).

Soybean meal was reported at 87,300 tons, 28% higher than the week before, but 40% lower than the four-week average. The Dominican Republic bought 32,800 tons and Mexico picked up 25,500 tons, with a cancellation on 42,000 tons by Slovenia. At this point in the marketing year, soybean meal sales are 11,676,900 tons, compared to 11,671,100 a year ago. Sales of 73,100 tons for 2021/22 delivery were mainly to Slovenia (42,000 tons) and Canada (19,100 tons).

Soybean oil came out at 2,200 tons, solid improvements from both the prior week and the four-week average. Canada purchased 1,300 tons and Mexico bought 900 tons. Cumulative soybean oil exports are 679,500 tons, compared to 1,245,000 last year.

Upland cotton had a net reduction of 1,200 bales. Mexico picked up 2,400 bales and Pakistan purchased 900 bales, with several cancellations ranging from 400 to 2,200 bales. Very late in the 2020/21 marketing year, cotton exports are 16,189,300 bales, compared to 17,124,900 bales in 2019/20. Sales of 192,200 bales for 2021/22 delivery were primarily to Bangladesh (55,000 bales) and Mexico (36,900 bales).

Net beef sales totaled 22,500 tons, down 11% on the week, but up 28% from the four-week average. The reported buyers were South Korea (8,200 tons), Japan (6,100 tons) and China (4,500 tons). Shipments of 19,100 tons were 11% less than the previous week, but 4% more than the four-week average, mostly to South Korea (5,100 tons), Japan (4,400 tons), China (3,100 tons), Taiwan (1,700 tons), and Mexico (1,500 tons).

Net pork sales totaled 38,500 tons, 57% larger than the week before and 43% above the four-week average. The listed purchasers were Mexico (25,100 tons), Chile (3,300 tons), Japan (3,200 tons), Honduras (2,300 tons), and Colombia (2,000 tons). Shipments of 29,900 tons were 3% lower than the prior week, but 1% higher than the four-week average, mainly to Mexico (12,300 tons), China (5,700 tons), Japan (4,000 tons), South Korea (2,100 tons), and Canada (1,700 tons). Sales of 400 tons for 2022 delivery were to Chile.

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