For the first half of the year, beef exports decreased 4.5% year over year, said Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, in a letter called Cow-Calf Corner.
That followed a 14.3% year over year decrease in 2023, down from record beef exports in 2022, Peel said. Beef exports continue to follow current market conditions of declining beef production and higher domestic beef prices.
Those, combined with a generally strong dollar, have pressured beef exports, as expected, he said.
H1 BEEF EXPORTS DOWN
Beef exports in the January–June period were down in most major beef export destinations, but by varying degrees, Peel said. The top three beef export markets, Japan, South Korea and China/Hong Kong were down 1.8%, 13.4% and 11.0%t year over year, respectively.
Those along with Taiwan, down 8.3% from last year, account for 73.9% of total beef exports in the first half of 2024, he said.
MEXICO AN EXCEPTION
Number four Mexico was an exception with US beef exports to Mexico up 14.7% year over year, Peel said. This follows a 12.2% year over year increase in 2023.
Mexico currently accounts for 11.2% of total beef exports, he said. The growth in beef exports to Mexico follows a significant decline from 2020 through 2022.
In 2019, Mexico was the number three beef export market with a 14.0% share of total US beef exports, Peel said. Beef exports to Mexico have been helped since 2020 by increasing strength of the Mexican Peso to the US dollar.
However, since the beginning of August, the Peso has weakened against the dollar to its lowest level in more than 18 months, which could temper beef exports to Mexico in the last half of the year, he said.
Canada is the number five market for US beef exports, down 2.1% year over year for the first six months of 2024, and accounting for 8.7% of total beef exports, Peel said.
CANADA, MEXICO EXPORTS
Canada and Mexico also were major sources of US beef imports, he said. Canada was the largest source, accounting for 22.9% of imports.
Mexico was the number four beef import source, accounting for 12.8% of beef imports in the January–June period, Peel said.
The bilateral trade highlights the fact that beef trade flows consist of many different products that move into distinct markets in each country, he said. This is true for all beef exports, with each destination representing demands for specific products.
Exports and imports enhance the value of US beef production by improving the balance of supply and demand.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $183.44 per cwt to $183.88, compared with last week’s range of $183.00 to $196.22 per cwt. FOB dressed steers, and heifers went for $289.57 per cwt to $290.10, compared with $289.28 to $296.44.
The USDA choice cutout Tuesday was up $1.33 per cwt at $310.67 while select was up $4.29 at $300.11. The choice/select spread narrowed to $10.56 from $13.52 with 94 loads of fabricated product and 11 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $375.23 per cwt, and 50% beef was $125.01.
The USDA said basis bids for corn from feeders in the Southern Plains were at $1.29 to $1.39 a bushel over the Dec corn contract, which settled at $4.09 1/4 a bushel, up $0.08 1/4.
The CME Feeder Cattle Index for the seven days ended Monday was $239.98 per cwt, down $0.82. This compares with Tuesday’s Sep contract settlement of $241.37, up $0.90.