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Corn, soybean oil export sales hit marketing year highs

Corn export sales rocketed to a marketing year high during the week ending March 16^th. The USDA says corn sales topped 3 million tons, with nearly 2.3 million of that purchased by China, which has returned to the U.S. corn market as other sellers exhaust their supplies. Soybean oil also notched a marketing year high, while cotton, beef, and pork saw good week-to-week improvements. Sorghum hit a marketing year low following a cancellation by China and soybean, wheat, rice, and soybean meal sales were all down on the week. The USDA’s next set of supply and demand estimates is out April 11^th.

Physical shipments of corn and soybeans were more than what’s needed to meet projections for the current marketing year. The 2022/23 marketing year started June 1^st, 2022 for wheat, August 1^st, 2022 for cotton and rice, September 1^st, 2022 for beans, corn, and sorghum, and October 1^st, 2022 for soybean products. The marketing year for beef and pork is the calendar year.

Wheat came out at 125,600 tons (4.6 million bushels), down 63% from the week ending March 9^th and 59% from the four-week average. Mexico purchased 74,900 tons and China bought 73,600 tons, but unknown destinations canceled on 142,700 tons. In the final quarter of the 2022/23 marketing year, wheat exports are 656.4 million bushels, compared to 694.1 million in 2021/22. Sales of 13,000 tons (500,000 bushels) for 2023/24 delivery were mainly to Trinidad and Tobago (8,900 tons) and Ecuador (4,000 tons).

Corn was reported at 3,095,900 tons (121.9 million bushels), a big jump from both the previous week and the four-week average. China picked up 2,245,200 tons and Japan purchased 683,000 tons, while unknown destinations canceled on 261,400 tons. Early in the back half of the marketing year, corn exports are 1.376 billion bushels, compared to 2.087 billion a year ago. Sales of 93,000 tons (3.7 million bushels) for 2023/24 delivery were primarily to Mexico (80,000 tons) and Japan (10,000 tons).

Sorghum had a net reduction of 3,600 tons (100,000 bushels) following a cancellation by China. Sorghum exports are 59 million bushels, compared to 266.8 million this time last year.

Rice sales were 14,900 tons, 42% lower than the week before and 73% under the four-week average. Guatemala bought 6,200 tons and El Salvador picked up 4,000 tons. Rice exports are 1,568,400 tons, compared to 2,448,400 a year ago.

Soybeans were pegged at 152,500 tons (5.6 million bushels), 77% below the prior week and down 55% from the four-week average. China purchased 137,700 tons and Mexico bought 76,700 tons, but unknown destinations canceled on 222,000 tons. So far, this marketing year, soybean exports are 1.818 billion bushels, compared to 1.986 billion last year. Sales of 199,000 tons (7.3 million bushels) for 2023/24 delivery were to unknown destinations (132,000 tons) and China (67,000 tons).

Soybean meal came out at 121,100 tons, a decrease of 45% on the week and 38% from the four-week average. Canada picked up 33,400 tons and the Philippines purchased 19,700 tons. Nearing the halfway point of the marketing year, soybean meal exports are 8,386,500 tons, compared to 9,052,500 a year ago.

Soybean oil was reported at 10,800 tons, significantly higher than both the previous week and the four-week average. Mexico bought 10,700 tons and Canada picked up 100 tons. Cumulative soybean oil exports are 74,100 tons, compared to 602,400 last year.

Upland cotton came out at 310,200 bales, an increase of 38% from the week before and 33% from the four-week average. Vietnam purchased 115,300 bales and China bought 95,900 bales. 2022/23 upland cotton exports are 11,179,100 bales, compared to 13,963,300 in 2021/22. Sales of 21,300 bales for 2023/24 delivery were mostly to Guatemala (9,600 bales) and Japan (5,300 bales).

Net beef sales totaled 18,600 tons, up 5% from the prior week and 59% from the four-week average. The reported buyers were South Korea (10,800 tons), Japan (3,600 tons), China (1,500 tons), Hong Kong (800 tons), and Taiwan (800 tons), with a reduction by the United Kingdom (100 tons). Shipments of 13,500 tons were down 15% on the week and 13% from the four-week average, mainly to Japan (3,500 tons), South Korea (3,200 tons), China (2,300 tons), Mexico (1,300 tons), and Taiwan (900 tons).

Net pork sales totaled 38,000 tons, 7% higher than the previous week and 8% above the four-week average. The listed purchasers were Mexico (18,400 tons), Canada (4,800 tons), Japan (4,400 tons), South Korea (3,400 tons), and Australia (1,800 tons). Shipments of 30,500 tons were 3% larger than the week before and 2% more than the four-week average, primarily to Mexico (13,200 tons), China (4,400 tons), Japan (3,900 tons), South Korea (2,600 tons), and Canada (1,500 tons).