Global beef trade continues to grow, with total beef imports by major world importers expected to increase in 2021 along with increases in total beef exports by major world exporters, said Oklahoma State University Extension Livestock Marketing Specialist Derrell Peel, in a letter to Extension agents called Cow-Calf Corner.
U.S. beef exports and imports take place in the context of the much larger and growing global beef market.
US BEEF IMPORTS MIXED, DECLINING
Beef and veal imports, at 274.784 million pounds, were up 1.5% from 270.670 million last year in April but were down 7.0%, at 970.912 million for the January to April period compared with 1.044 billion last year, Peel said.
US beef imports were projected to decrease in 2021 by 10% to 13% year over year, which will put total beef imports below the 2015–2019 average of 3.09 billion pounds, he said.
AUSTRALIA LARGEST SOURCE
In the 2015-2019 period, Australia was the largest source of beef imports, followed by Canada, with New Zealand at number three and Mexico fourth, Peel said. Brazil, Nicaragua and Uruguay round out the top seven sources of beef imports.
From 2015-2019, the top seven countries accounted for 98.7% of total beef imports with the top four accounting for 85.5%, he said.
In 2020, beef imports spiked to the highest level since 2015 because of supply chain disruptions resulting from the pandemic, Peel said.
Thus far in 2021, Canada has been the largest source of beef imports and is up 17.0% year over year, Peel said. Mexico is the number two source with imports down 6.0% from last year.
New Zealand is the third largest source of beef imports in 2021, down 9.9% year over year, he said. Australia is the fourth largest, down 48.1% from last year.
FURTHER NOTES
Australia is experiencing reduced production from herd liquidation in previous years resulting from drought, wildfires and floods, Peel said. Australia is attempting to rebuild herds, which further reduces beef production and exports in the short run.
Argentina does not make the list of major sources of US beef imports, but the country has rebounded sharply in recent years as a beef exporting country, he said. US beef imports from Argentina in 2020 were the highest since 2007 but represented less than 2% of the total.
Recently, the Argentine government announced a 30-day ban on beef exports from the country, which has disrupted the rebuilding of its beef export markets and is indicative of the challenges faced by the Argentinian beef industry in recent years.
CATTLE, BEEF RECAP
Fed cattle traded this week is at $122 to $125 per cwt, up $1 to $2 from last week. Dressed-basis trading was at $197, up $2 to $7.
The USDA choice cutout Wednesday was down $3.70 per cwt at $312.05, while select was off $4.34 at $275.41. The choice/select spread narrowed to $36.64 from $38.00 with 97 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The USDA reported Wednesday that basis bids for corn from livestock feeding operations in the Southern Plains were up $0.05 a bushel at $1.05 to $1.12 over the Jul futures and for southwest Kansas were unchanged at $0.70 over Jul, which settled at $6.64 1/4 a bushel, up $0.04 1/2.
No live cattle delivery notices were tendered Wednesday against the Jun contract.
The CME Feeder Cattle Index for the seven days ended Tuesday was $145.44 per cwt up $0.20. This compares with Wednesday’s Aug contract settlement of $155.70 per cwt, down $2.65.