First-half 2018 US beef exports set records in volume and value, and pork exports remained ahead of the 2017 pace, although June shipments were lower than a year ago for the second straight month, according to data released by the USDA and compiled by the US Meat Export Federation.
RECORD FIRST HALF FOR BEEF
International beef customers bought a larger share of US beef production at higher prices, giving way to the record sales and value of beef shipments for the first half, the USMEF said. Export volume was up 9% from a year ago to 662,875 tonnes while export value was a little more than $4 billion, up 21%.
In previous years, export value never topped the $4 billion mark before August.
Beef muscle cut exports set a new volume record in June of 90,745 tonnes, up 15% from a year ago, the USMEF said. When adding variety meat, total beef export volume was 115,718 tonnes, up 6%, valued at $718.4 million, up 19% year over year and only slightly below the record total of $722.1 million in May.
June beef exports accounted for 13.4% of total beef production, up from 12.8% a year ago, the USMEF said. For muscle cuts only, the percentage exported was 11.3%, up from a little less than 10% last year.
First-half beef exports accounted for 13.5% of total beef production for the period and 11% for muscle cuts, up from 12.8% and 10% respectively, last year, the USMEF said.
Beef export value averaged $313.56 a head of fed slaughter in June, up 19% from a year ago, the USMEF said. The first-half average was $3165.94 a head, up 18%.
PORK EXPORTS FALLING OFF
After setting a new record in April, pork export volume has trended lower the past two months, mainly because of lower exports to China/Hong Kong.
June exports totaled 191,303 tonnes, down 4.5% from a year ago, despite a slight increase in muscle cut exports to 153,083 tonnes, the USMEF said. June export value was $510.4 million, down 3%.
For the first half of 2018, pork export volume was still 2% ahead of last year’s record pace at 1.27 million tonnes, while value increased 5% to $3.36 billion, the USMEF said. For pork muscle cuts only, first-half exports were up 6% year over year in volume of 1.02 million tonnes and value of $2.78 million.
April 2, the import duty on US pork entering China increased to 37% from 12%. On July 6, the rate increased to 62%.
Mexico imposed a 10% retaliatory tariff on US pork muscle cuts on June 5, boosting it to 20% on July 5.
CATTLE, BEEF RECAP
851 head of fed cattle sold last Wednesday on the Livestock Exchange Video Auction at an average price of $110.07 per cwt, down from the last sale at $112 two weeks previous.
Cash cattle traded last week at $113 to mostly $114 per cwt on a live basis, up $1 to $2 from the previous week. Dressed-basis sales were reported at $178 per cwt, steady to up $2.
The USDA choice cutout Tuesday was down $0.19 per cwt at $205.49, while select was up $0.18 at $198.51. The choice/select spread narrowed to $6.98 from $7.35 with 95 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Monday, was $150.06 per cwt, up $0.32. This compares with Tuesday’s Aug settlement of $149.85, down $2.00.