Due in part to a sharp decline in shipments to China, April exports of US beef and pork trended lower than a year ago, according to data released by USDA and compiled by the US Meat Export Federation.
In a release, the USMEF said China’s retaliatory duties were a major headwind for US beef and pork, while beef exporters faced an additional obstacle: China failed to renew establishment registrations for US beef plants and cold storage facilities, the majority of which expired in mid-March.
BEEF EXPORTS DECLINE
April beef exports totaled 100,659 tonnes, down 10,921 tonnes, or 9.79%, from 111,580 tonnes a year ago, while value fell to $824.478 million from $898.680 million.
Exports to China declined nearly 70%, and shipments trended lower to Mexico, Taiwan and the Middle East, the USMEF said. These results were partially offset by larger exports to South Korea, Japan and Central and South America.
For January through April, beef exports were 12,467 tonnes, or 2.94%, less than last year’s pace at 411,027 tonnes from 423,494 tonnes, the USMEF said. Export value was down $32 million, or 0.95%, to $3.351 billion from $3.383 billion.
China’s duties on US beef peaked in April at 147%, the USMEF said. The rate was lowered to 32% on May 14 when the US and China agreed to a temporary de-escalation to allow for further negotiations. (Product that shipped prior to April 10 was allowed to clear without the additional 125%, provided it arrived by May 13.) President Trump spoke with Chinese President Xi Jinping on June 5 and said further talks would be held soon.
PORK EXPORTS ALSO DOWN
Pork exports totaled 237,250 tonnes in April, down 40,660, or 14.6%, from 277,910 a year ago and the lowest in 10 months, the USMEF said. Export value fell $103.520 million, or 13.3%, to $675.324 million from $778.844 million.
Exports to China, which mainly are pork variety meats, declined 35% from a year ago, the USMEF said. Shipments also were lower year-over-year to leading market Mexico and to Japan and Canada. But April was another outstanding month for pork exports to Colombia and Central America, both of which are on a record pace.
For January through April, pork exports were 49,262 tonnes, or 4.73%, less than last year’s record pace at 991,738 tonnes from 1.041 billion, while value fell to $2.785 billion from $2.887 billion, a decline of $102 million, or 3.53%.
China’s duties on US pork peaked in April at 172% but was lowered to 57% on May 14. (Product that shipped prior to April 10 and arrived by May 13 was allowed to clear without the additional 125%.)
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $236.18 per cwt to $239.52, compared with last week’s range of $223.72 to $234.90 per cwt. FOB dressed steers, and heifers went for $354.94 per cwt to $355.88, compared with $349.46 to $370.67.
The USDA choice cutout Monday was up $2.17 per cwt at $367.25 while select was up $2.20 at $358.93. The choice/select spread narrowed to $8.32 from $8.35 with 65 loads of fabricated product and 25 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $386.14 per cwt, and 50% beef was $139.76.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.15 to $1.25 a bushel over the Jul corn contract, which settled at $4.33 1/2, down $0.09.
No live cattle delivery notices were posted.
The CME Feeder Cattle Index for the seven days ended Friday was $310.46 per cwt, up $4.30. This compares with Monday’s Aug contract settlement of $311.65, up $1.50.