Export sales and shipments strengthened during the first full, non-holiday week of 2020.
For the week ending Jan. 9, net soybean export sales were 711,462 MT (26.14 million bushels), reflecting 377,300 MT of reductions from unknown destinations. Weekly net sales were about double the volumes sold during the holiday weeks. Outstanding sales of 7.24 MMT (266.04 million bushels) were down 42 percent YOY.
Net sales to China were just over 216,600 MT for the week, including 85,588 MT of new sales, and the U.S. shipped 412,600 MT to China, leaving 1.55 MMT in outstanding orders.
Exports to China accounted for 32 percent of the week’s total volume, 1.28 MMT, which was up 14 percent from the previous week. Other major destinations were the Netherlands (197,500 MT), Pakistan (137,100 MT), and Mexico (109,100 MT). Cumulative exports increased to 23.24 MMT (854.00 million bushels), up 23 percent YOY.
China has agreed to purchase more ag products during 2020, to the tune of $12.5 billion above 2017 sales. However, it is unclear if China will shift a significant soybean volume away from South America over the next six months, especially with Chinese Vice Premier Liu He clarifying, “Based on market conditions,” during the press conference with President Trump. The increase is being applied to 2017, and that year, a more traditional season, China contracted a little over 3.4 MMT of U.S. soybeans during Feb-Aug, or about 10 percent of its total U.S. commitments for 2016/17. If trade negotiations continue to advance, we may see more impact on new-crop sales.