October was another strong month for US red meat exports as beef export value continued to soar, according to data released by USDA and compiled by the US Meat Export Federation.
October pork exports were less than last year’s large total, but year-to-date shipments remained slightly above the record pace of 2020.
“USMEF has always prioritized market diversification, and this is more critical than ever now that the red meat industry faces unprecedented transportation challenges and rising input costs,” said President and CEO Dan Halstrom, in a release.
BEEF EXPORTS UP 7.5%
Beef exports reached 115,709 tonnes in October, up 8,118, or 7.55%, from 107,591 a year ago, while export value climbed $310.897 million, or 48.1%, to $956.886 million from $645.989 million – the second-largest total on record, behind August 2021.
Through the first 10 months of the year, beef exports totaled 1.195 million tonnes, up 175 million, or 17.2%, from 1.020 million a year ago. Value increased $2.335 billion, or 37.7%, to $8.532 billion from $6.197 billion, surpassing the 2018 record of $8.33 billion with two months to spare.
US beef exports were projected to top $2 billion this year in each of three key Asian markets – South Korea, Japan and China/Hong Kong, the USMEF said. Korea and Japan already are knocking on the door, with exports through October exceeding $1.9 billion.
October beef exports to Korea increased about 13% from a year ago to 21,934 tonnes, while value soared about 57% to $212.4 million. Through October, exports also were up 13% to 235,260 tonnes and increased 32% in value to $1.93 billion.
PORK EXPORTS DOWN 7%
Pork exports totaled 226,206 tonnes in October, down 16,330, or 6.73%, from 242,536 a year ago, while export value slipped $22.306 million, or 3.48%, to $618.836 million from $641.142 million.
For January through October, pork exports were up 11,000 tonnes, or 0.45%, from a year ago in volume at 2.469 million tonnes from 2.458 million and increased $514 million, or 7.51%, in value to $6.844 billion from $6.330 billion.
Pork exports to Mexico continued to strengthen in October as shipments reached a new monthly high of 83,929 tonnes, up about 38% from a year ago, while value increased about 37% to $143.8 million, the USMEF said. Through October, exports to Mexico increased 28% to 707,157 tonnes, valued at $1.38 billion (up 55%). Exports also were ahead of the record pace established in 2017, when full-year shipments to Mexico exceeded 800,000 tonnes and topped $1.5 billion in value.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $140.55 to $143.75 per cwt, compared with last week’s range of $140.55 to $143.75. FOB dressed steers and heifers went for $219.10 to $222.88 per cwt, versus $219.10 to $222.88.
The USDA choice cutout Monday was down $1.32 per cwt at $263.22, while select was up $1.40 at $253.64. The choice/select spread narrowed to $9.58 from $12.30 with 89 loads of fabricated product and 37 loads of trimmings and grinds sold into the spot market.
The USDA reported Monday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.30 to $1.40 a bushel over the Mar futures and for southwest Kansas were unchanged at $0.40 over Mar, which settled at $5.85 a bushel, down $0.05.
No delivery intentions were posted against the Dec live cattle contract Monday.
The CME Feeder Cattle Index for the seven days ended Friday was $162.16 per cwt up $0.65. This compares with Monday’s Jan contract settlement of $165.52 per cwt, up $0.65.