USDA data showed US cattle imports from Mexico rose sharply last year while those from Canada declined.
The data, released by the USDA and compiled by the Livestock Marketing Information Center in Denver, also showed that cattle imports from the US’ two closest trading partners fell short of record years.
IMPORTS COULD INCREASE
It’s interesting to note that 2023 US cattle imports from Mexico, which are mostly feeder cattle, increased after dropping even more sharply in 2022 when both years were ones of declining US herd size. With cattle supplies at their lowest levels since 1951 and a 19% decline since 2023, according to the LMIC, an increase in prices could draw more imports from Mexico over the next year or two, a market analyst said.
Feeder cattle imports from Canada also could increase over the next couple of years, the analyst said. The US imports beef breed feeder cattle, dairy cattle and breeding stock of both from Canada, although Canada has a more mature and balanced cattle industry, fewer cattle are available for export at agreeable prices.
The USDA data showed that the US imported 1.247 million head of cattle from Mexico last year, up 375,854, or 43.2%, from 870,700 in 2022 and down from the most recent high in 2020 of 1.441 million and the 2012 record of 1.468 million.
The same data set showed US cattle imports from Canada last year totaled 734,032 head, down 23,354, or 3.08%, from 757,386 in 2022. They also were down from the most recent high of 1.243 million in 2014.
CATTLE EXPORTS DOWN
Data from the USDA also showed that 2023 cattle exports to Mexico and Canada also were down from 2022. And while US live cattle exports are a small portion of the US industry, looking at changes can be instructional.
The USDA said cattle exports to Mexico last year totaled only 44,198 head, down 58,923, or 57.1%, from 103,121 in 2022. Exports to Mexico also were down from the record year of 2001 when they bought 144,021 US cattle.
Cattle exports last year to Canada totaled 287,684 head, down 22,591, or 7.28%, from 310,275 in 2022 and down from the 2021 record year of 394,026 head.
With US cattle prices over the next couple of years set to increase as the herd is rebuilt, it would be reasonable to expect live cattle exports to Canada and Mexico to decrease, the analyst said. Domestic prices may simply outpace buyers’ ability in both countries to pay.
To a large part, it will depend on the weather in the contiguous 48 states, the analyst said. If parched pasturelands can get rain to return, there would be a larger ability to hold cattle rather than sell.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $180.00 per cwt to $182.19, compared with last week’s range of $175.69 to $183.00 per cwt. FOB dressed steers, and heifers went for $284.18 per cwt to $288.11, compared with $280.06 to $290.07.
The USDA choice cutout Tuesday was up $0.28 per cwt at $297.37 while select was up $0.42 at $287.82. The choice/select spread narrowed to $9.55 from $9.69 with 83 loads of fabricated product and 27 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.35 to $1.45 a bushel over the Mar corn contract, which settled at $4.18 3/4 a bushel, up $0.02 1/4.
Nine heifer and no steer contracts were tendered Tuesday for delivery against the Feb live cattle contract. Two more were retendered and demanded at one.
The CME Feeder Cattle Index for the seven days ended Monday was $242.65 per cwt, up $0.38. This compares with Tuesday’s Mar contract settlement of $251.37, up $0.35.