In second quarter 2020, inspections of wheat, corn, and soybeans for export from all major U.S. ports totaled 27.2 million metric tons (mmt), according to USDA’s Federal Grain Inspection Service (FGIS).
The amount of grain inspected was down 2 percent from second quarter 2019 (year to year) and up 2 percent from the 5-year average.
Inspections of grain were down slightly in three major U.S. port regions. USDA’s July export projections for marketing year 2020/21 were up from 2019/20 for corn and soybeans, but down slightly for wheat.
Grain Inspections by Region
In second quarter 2020, Pacific Northwest (PNW) grain inspections totaled 8.4 mmt, down 1 percent year to year and down 3 percent from the 5-year average. Second-quarter rail deliveries of grain to PNW ports were down 8 percent year to year. Inspections of grain in the U.S. Gulf totaled 14.2 mmt, down only 1 percent year to year and down 2 percent from the 5-year average. At 0.468 mmt, grain inspections in the Atlantic-Great Lakes dropped 50 percent year to year and declined 47 percent from the 5- year average.
At 4.2 mmt, Interior (land-based) grain inspections were down 2 percent year to year, but 8 percent above the 5-year average. In second quarter 2020, corn inspections represented 55 percent of total Interior grain inspections, and soybean inspections accounted for 33 percent of total Interior inspections.
Corn Inspections Rebound
Second-quarter corn inspections totaled 15.2 mmt, up 26 percent year to year and down 1 percent from the 5-year average. The rebound from last year owed mainly to a drop in U.S. corn prices, which led to high exports in May and June. U.S. shipments of corn increased primarily to Asia and South America. At 3.9 mmt, corn inspections in PNW were up 10 percent year to year and down 10 percent from the 5-year average. At 9.0 mmt, U.S. Gulf inspections of corn increased 42 percent year to year and rose 3 percent from the 5-year average. At 2.3 mmt, corn inspections in the Interior reached 2.3 mmt, up 7 percent year to year and up 5 percent from the 5-year average. At 0.008 mmt, corn inspections in the Atlantic-Great Lakes decreased 81 percent year to year.
Soybean Inspections Decrease
At 5.3 mmt in second quarter 2020, soybean inspections were down 32 percent year to year and down 7 percent from the 5-year average. The decrease was due mainly to lower shipments to Asia. Soybeans inspected for export to China decreased 83 percent year to year. For the week ending July 9, year-to-date soybean inspections were down 7 percent from the same week in 2019. At 0.583 mmt, soybean inspections in PNW decreased 59 percent year to year and fell 39 percent from the 5-year average, as demand from Asia dropped significantly. At 3.2 mmt, inspections of soybeans in the U.S. Gulf decreased 26 percent year to year and fell 2 percent from the 5-year average.
The decrease was due primarily to strong Brazilian soybean exports to China, historically a major buyer of U.S. soybeans. At 1.4 mmt, Interior (land-based) inspections of soybeans were down 18 percent year to year but up 8 percent from the 5-year average. 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 All Ports PNW Gulf Atlantic-Great Lakes Interior mmt Figure 1: Second quarter grain inspections by port region 2019 2020 Source: USDA. Federal Grain Inspection Service Grain Transportation Report 3 July 16, 2020
Wheat Inspections Decrease
At 6.7 mmt, second-quarter wheat inspections were down 14 percent year to year and equal to the 5-year average (fig. 2). The year-to-year decline occurred primarily because of high global supplies of wheat and reduced shipments to Africa.
At 4 mmt, wheat inspections in PNW were up 11 percent year to year and up 14 percent from the 5-year average. Mainly resulting from lower demand from Africa, total wheat inspections in the U.S. Gulf dropped 46 percent year to year and fell 24 percent from the 5-year average. Atlantic-Great Lakes wheat inspections (0.289 mmt) decreased 33 percent year to year, mostly because of lower shipments to Canada and Asia. At 0.508 mmt, wheat inspections in the interior were up 12 percent year to year and 31 percent above the 5-year average, largely because shipments to Mexico increased 12 percent.
According to the USDA’s July World Agricultural Supply and Demand Estimates report, corn exports for marketing year 2020/21 were projected to reach 54.7 mmt, unchanged from June, but up 21 percent from marketing year 2019/20. At 55.9 mmt, soybean exports were projected to be unchanged from the June, but up 24 percent from 2019. July export projections for wheat were estimated at 25.9 mmt, unchanged from June, and 2 percent below marketing year 2019/20.
Information provided by the USDA Grain Transportation Report.
