News

Mexico big weekly buyer of U.S. pork, China disappoints

Mexico’s appetite for U.S. pork continues to grow. The USDA says Mexico was the leading buyer of U.S. pork during the week ending October 24th, purchasing 16,900 tons, pushing their accumulated year-to-date total over 430,000 tons, and was the week’s biggest buyer of corn as well. China made bought 1,900 tons of pork for 2019 delivery, but canceled on 4,200 tons for 2020 delivery, while also buying nearly a half million tons of U.S. soybeans. Japan led the way for beef and wheat. The USDA’s next set of supply, demand, and production estimates is out November 8th.

Soybean oil export sales were above pre-report estimates, while corn, soybeans, soybean meal, and wheat were within expectations. Physical shipments of soybeans were above what’s needed to meet USDA projections for the marketing year. The 2019/20 marketing year started June 1st for wheat, August 1st for cotton and rice, September 1st for beans, corn, and sorghum, and October 1st for soybean products.

Wheat came out at 493,800 tons (18.1 million bushels), up 88% from the week ending October 17th and 31% higher than the four-week average. Japan purchased 117,700 tons and the Philippines bought 112,000 tons. At this point in the 2019/20 marketing year, wheat sales are 535.6 million bushels, compared to 480.8 million in 2018/19.

Corn was reported at 549,100 tons (21.6 million bushels), 12% more than the previous week and 29% above the four-week average. Mexico picked up 297,400 tons and Saudi Arabia purchased 73,300 tons. Less than two months into the marketing year, corn sales are 449.0 million bushels, compared to 859.5 million this time last year.

Sorghum exports were 56,000 tons (2.2 million bushels), a significant gain from the week before and 72% larger than the four-week average. The sole listed buyer was unknown destinations. Sorghum sales are 12.7 million bushels, compared to 8.8 million a year ago.

Rice sales were 84,800 tons, up 1% from the prior week and 22% higher than the four-week average. Mexico picked up 28,100 tons and Haiti purchased 15,300 tons. Rice exports are 1,555,400 tons, compared to 1,018,100 last year.

Soybeans were pegged at 943,600 tons (34.7 million bushels), 99% more than the previous week, but 39% less than the four-week average. China bought 481,000 tons and Germany picked up 135,900 tons, but unknown destinations canceled on 351,500 tons. So far, this marketing year, soybean sales are 708.1 million bushels, compared to 784.4 million a year ago.

Soybean meal came out at 179,100 tons. Mexico purchased 80,500 tons and the Dominican Republic bought 33,600 tons. About a month into the marketing year, soybean meal sales are 3,905,500 tons, compared to 4,572,500 last year. Sales of 400 tons for 2020/21 delivery were to Canada.

Soybean oil was reported at 29,900 tons. Colombia picked up 11,000 tons and South Korea purchased 10,000 tons. 2019/20 soybean oil sales are 233,200 tons, compared to 224,700 in 2018/19. Sales of 200 tons for 2020/21 delivery were to Canada.

Upland cotton exports were 108,100 bales, down 23% from the week before and 39% lower than the four-week average. Turkey and Pakistan both bought 60,500 bales and Vietnam picked up 31,400 bales, but Indonesia canceled on 60,000 bales. Cumulative cotton sales are 9,384,200 bales, compared to 9,147,500 a year ago. Sales of 71,300 bales for 2020/21 delivery were to Indonesia.

Net beef exports totaled 15,700 tons, 14% above the prior week and a big jump from the four-week average. The reported purchasers were Japan (4,900 tons), South Korea (4,200 tons), Hong Kong (2,700 tons), Mexico (1,200 tons), and Canada (1,000 tons). Sales of 400 tons for 2020 delivery were mainly to Hong Kong (200 tons) and Taiwan (100 tons).

Net pork sales totaled 30,100 tons, an increase of 57% on the week, but a decrease of 68% from the four-week average. The listed buyers were Mexico (16,900 tons), Japan (2,700 tons), South Korea (2,700 tons), Canada (2,300 tons), and China (1,900 tons), with a cancellation by Chile (100 tons). Net sales of 1,800 tons for 2020 delivery were primarily to Australia (4,600 tons), South Korea (1,100 tons), and Chile (200 tons), with a cancellation by China (4,200 tons).