April US beef exports topped $1 billion for the third time this year, according to data released by USDA and compiled by the US Meat Export Federation. April pork exports were well below the large totals posted a year ago.
“Global demand for US beef continues to overcome enormous obstacles, from inflationary pressure to logistical challenges to the recent lockdowns in some of China’s major metropolitan areas,” said USMEF President and CEO Dan Halstrom, in a release. “Most encouraging is that even as beef exports climb to unprecedented levels in our largest Asian markets, demand is strengthening in other regions as well, fueled by a strong rebound in the foodservice sector.”
“The sharp decline in China’s demand for imported pork continues to weigh heavily on the year-over-year results for US exports, and the COVID lockdowns dampened demand even further by limiting consumer spending and slowing activity in the wholesale market and the meat processing sector,” Halstrom explained.
Halstrom cautioned that April results did not capture the full effect of recent COVID-19 lockdowns in China, some of which continued through May and into early June. The pressure inflation imposes on consumers’ discretionary income and the rising strength of the US dollar versus some key trading partner currencies also are growing headwinds for US red meat exports.
BEEF EXPORTS UP
Beef exports totaled 124,408 tonnes in April, up 3,358, or 2.77%, from 121,050 a year ago and the fifth largest on record, while export value soared to $1.054 billion – second only to the record $1.07 billion posted in March and up $245,674, or 30.4%, from last year’s $808,326.
For January through April, beef exports increased 23,862 tonnes, or 4.99%, from a year ago to 478,260 tonnes from 454,398 tonnes, valued at $4.054 billion, up $1.121 billion, or 38.2%, from $2.933 billion.
April beef exports to Taiwan reached new heights at 7,466 tonnes, up about 41% from a year ago, while value climbed about 36% to $87.1 million. Through April, exports to Taiwan increased 45% from a year ago to 25,889 tonnes, while value soared 85% to $314.3 million.
PORK EXPORTS DOWN
April pork exports were 212,876 tonnes, down 57,042, or 21.1%, from the large volume of 269,918 tonnes reported a year ago. Export value was $600.569 million, down $148.595 million, or 19.8%, from $749.164 million a year ago.
Through April, pork exports fell 210,196 tonnes, or 20.0%, from 1.053 million tonnes a year ago to 842,804 tonnes, valued at $2.313 billion, down $503.000 million, or 17.9%, from $2.816 billion a year ago.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $135.00 to $143.15 per cwt, compared with last week’s range of $138.47 to $147.00. FOB dressed steers, and heifers went for $213.40 to $216.89 per cwt, versus $216.01 to $219.32.
The USDA choice cutout Thursday was down $0.64 per cwt at $271.10, while select was up $0.20 at $249.61. The choice/select spread narrowed to $21.49 from $22.33 with 91 loads of fabricated product and 18 loads of trimmings and grinds sold into the spot market.
The USDA reported that basis bids for corn from feeders in the Southern Plains were unchanged at $1.75 to $1.85 a bushel over the Jul futures and for southwest Kansas were steady at even the Jul, which settled at $7.73 a bushel, up $0.08 1/2.
No live cattle delivery intentions were posted Thursday.
The CME Feeder Cattle Index for the seven days ended Wednesday was $159.80 per cwt up $1.12. This compares with Thursday’s Aug contract settlement of $176.02, up $0.37.