Strong buying from China bolstered US pork exports in October, according to USDA data that was compiled by the US Meat Export Federation, while October beef exports were below the very high totals posted a year ago.
PORK EXPORTS JUMP
October pork exports increased 18,101 tonnes, or 8.73%, year-over-year to 225,376 tonnes from 207,275, while export value climbed $55.593 million, or 10.4%, to $592.043 million from $536.450 million, the USMEF said.
January-October export volume was 109,572 tonnes, or 5.42%, ahead of last year’s pace of 2.021 million tonnes at 2.130 million, while value increased $153.071 million, or 2.87%, to $5.479 billion from $5.326 billion, the report said.
Pork export value averaged $48.13 per hog slaughtered in October, up 4%, from a year ago. For January through October, the per-head average was down 1% to $51.12, the USMEF said.
October exports accounted for 24% of total US pork production and 20.9% for muscle cuts only, up from 23.6% and 20.7%, respectively, a year ago, the USMEF said. January-October exports accounted for 26% of total pork production and 22.6% for muscle cuts, both up slightly year over year.
Although still saddled by China’s retaliatory duties, October pork exports to the China/Hong region reached 61,062 tonnes, up 150% year over year, while export value climbed 127% to $141.3 million, the USMEF said.
For January through October, pork exports to China/Hong Kong were up 55% in volume to 468,576 tonnes and 34% in value to $974.8 million, the report said. Exports to the region already exceed the full-year 2018 totals.
BEEF EXPORTS SAG
October US beef exports totaled 108,017 tonnes, a decline of 9,821 tonnes, or 8.33%, from last year’s large volume of 117,838 tonnes, while export value of $649.059 million was down $78.346 million, or 10.8%, from $727.405 million, the USMEF said.
Through the first 10 months of 2019, beef exports were down 27.956 million tonnes, or 2.48%, in volume to 1.099 million tonnes from 1.127 million and value by $173.234 million, or 2.50%, to $6.746 billion from last year’s record pace of $6.923 billion, the USMEF said.
Beef export value per head of fed cattle slaughtered averaged $284.56 in October, down 10% from a year ago, while the January-October average was down 4% to $308.04, the report said.
October exports accounted for 12.9% of total US beef production and 10.5% for muscle cuts only, down from 14.1% and 11.6%, respectively, last year, the USMEF said.
For January through October, exports accounted for 14.1% of total beef production and 11.5% for muscle cuts, each down about 0.5 percentage point from 2018, when a record percentage of production was exported, the USMEF said.
The tariff for US beef muscle cuts to Japan is 38.5% but will drop by nearly one-third when the agreement takes effect, mirroring the 26.6% rate imposed on Australia, Canada, Mexico and New Zealand.
CATTLE, BEEF RECAP
Cash cattle trading was reported last week at $118 to $119.50 per cwt on a live basis, up $0.50 to $1 from the previous week. Dressed-basis trade was reported at $188 to $190 per cwt, up $1 to $3.
The USDA choice cutout Monday was down $0.92 per cwt at $223.64, while select was off $0.81 at $206.49. The choice/select spread narrowed to $17.15 from $17.26 with 87 loads of fabricated product sold into the spot market.
Seven steer contracts were tendered Monday for delivery against the Dec live cattle futures contract.
The CME Feeder Cattle index for the seven days ended Friday was $143.48 per cwt, down $1.01 from the previous day. This compares with Monday’s Jan contract settlement of $141.52, down $0.02.