US beef exports in September continued to struggle while pork exports showed modest gains, according to the USDA.
Beef exports during the month fell 20,594 tonnes, or 20.6% in volume from a year earlier to 79,474 from 100,068 tonnes in September 2014. The value of these exports was down $175.3 million, or 27.7%, to $456.6 million from $631.9 million a year earlier, the lowest monthly value in years.
For the first nine months of the year, beef exports were down 12.1% in volume to 782,705 tonnes from 890,276 tonnes during the same period a year earlier. The value of these exports totaled $4.8 billion, down 7.92% from $5.2 billion in the 2014 period.
September pork exports totaled 172,012 tonnes, up 9,887, or 6.10%, from 162,125 tonnes a year earlier. However, these exports were valued at $456.1 million, down $56.8 million, or 11.1%, from $513.0 million a year earlier.
For the year to date, pork exports totaled 1.585 million pounds, down 3.65% from 1.645 billion the previous year. These shipments were valued at $4.2 million, down 16.6% from $5.0 million in 2014.
ALL BEEF EXPORTS TAKE A HIT
Digging deeper into the USDA statistics shows that beef variety meat exports in September were down as well as beef muscle cuts.
Beef variety meats are the items not associated with the carcass. They include things like the tongue, liver and heart, items in low demand in the US but which command a higher price overseas. Including the hides, these items make up what is known in the industry as the “drop credit” value of a slaughtered animal.
In September, beef variety meat exports totaled 23,965 tonnes, down 2,929, or 10.9%, from 26,894 tonnes a year earlier. These exports were valued at $70.1 million, down $1.1 million, or 1.52%, from $71.1 million a year ago.
For the year to date, beef variety meat exports totaled 224,153 tonnes, down 23,390, or 9.45%, from 247,543 tonnes in the year-earlier period. These shipments were valued at $632.3 million, up $39,516, or 6.67%, from $592.8 million a year ago.
Beef muscle meat exports took the larger hit to volume and pricing than did the variety meat in September and for the year to date.
September shipments of these items totaled 55,509 tonnes, down 17,665, or 24.1%, from 73,174 a year earlier. These beef shipments were valued at $386.5 million, down $174,3, or 31.1%, from $560,7 in September 2014.
For the year to date, beef muscle cut exports totaled 558,552 tonnes, down 84,181, or 13.1%, from 642,733 tonnes a year earlier. These exports were valued at $4.1 billion, down $450.2 million, or 9.82%, from $4.6 billion in the year-ago period.
EXPORT DECLINES NORMAL BUT AT A LOWER LEVEL
Since peaking in June near seasonal volumes, total US beef and veal exports have fallen away. Normally, this peak happens in July, although last year, it occurred in June as it did this year.
With the five-year average peaking in July and this year’s July decline, the two came out of synch, and average declines have not caught up with this year’s falling away.
However, September should mark the seasonal low point in US beef and veal exports with a sharp drop in January.
CASH FED CATTLE MARKETS LOWER
Cash fed cattle markets traded around the fringes Thursday, but those transactions that did take place were done at lower money. In Iowa, cattle traded at $130 to mostly $131 per cwt on a live basis, down $1 to $3 from last week. On a dressed basis, cattle have traded from $204 to $208, steady to down $4.
Wholesale beef prices Thursday were lower, with the USDA choice cutout value at $218.86 per cwt, down $1.28 on the day, and its select cutout at $208.65, off $1.04.
The choice/select spread narrowed to $10.21 from $10.45 on Wednesday, and there were 97 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Wednesday was $191.80 per cwt, down $1.08. This compares with the Nov settlement Thursday of $181.62, down $4.52.