The USDA confirmed stronger U.S. soybean export sales due to demand from China. Several of the main commodities did see week-to-week improvements thanks to key trading partners.
The USDA says those sales during the week ending October 15th were considerably larger than average thanks to strong demand from China, as Beijing resumed buying after the Golden Week holiday. That’s at least partially due to seasonal trends and China pushing to get closer to its pledged purchase total ahead of more trade negotiations next month. Corn, pork, cotton, and rice were also up on the week and above average.
Wheat came out at 239,600 tons (8.8 million bushels), down 25% from the week ending October 7th and 28% from the four-week average. Mexico purchased 98,000 tons and unknown destinations bought 49,900 tons.
Corn was reported at 1,527,100 tons (60.1 million bushels), up 36% from the previous week and 87% from the four-week average. Mexico picked up 477,700 tons and unknown destinations purchased 307,200 tons.
Sorghum sales of 2,000 tons (79,000 bushels) were all to Mexico.
Rice sales of 69,000 tons were 58% higher than the week before and 4% above the four-week average. Japan bought 25,000 tons and Mexico picked up 19,700 tons.
Soybeans were pegged at 2,841,200 tons (104 million bushels), substantially larger than both the prior week and the four-week average. China purchased 2,178,600 tons and Mexico bought 232,200 tons.
Soybean meal came out at 212,200 tons. Vietnam picked up 69,900 tons and Saudi Arabia purchased 60,000 tons, but unknown destinations canceled on 70,800 tons.
Soybean oil was reported at 900 tons. Canada bought 500 tons and Mexico picked up 400 tons.
Upland cotton was pegged at 199,600 bales, a decrease of 19% on the week and 1% from the four-week average. Vietnam purchased 94,500 bales and Bangladesh bought 34,200 bales.
Net beef sales totaled 18,500 tons, 7% less than the previous week, but 30% more than the four-week average.
Net pork sales totaled 37,500 tons, rising 3% from the prior week and 12% from the four-week average.
EDITOR’S TAKE:
Despite a couple of disappointing results, most of the major commodities showed strength and improvement during the reporting timeframe. It goes without saying that increased export sales are an important underpinning to prices in the U.S. We always support the concept of increased export sales and expanding markets with more trading partners.
Speaking of adding trading partners, be on the lookout for an exciting announcement of several new AgPack® partners in the coming weeks….
