US beef exports posted another strong performance in February, according to data released by USDA and compiled by the US Meat Export Federation, led by excellent value growth in key Asian and Latin American markets.
The USMEF added in a release that February pork exports trended lower year-over-year, as larger shipments to Mexico and Japan did not offset the continued decline in buying from China/Hong Kong.
BEEF EXPORTS UP
Beef exports totaled 108,501 tonnes in February, up 5,008, or 4.84%, from 103,493 tonnes a year ago, while value climbed $234.815 million, or 35.1%, to $904.352 million from $669.537 million, the USMEF said.
Through the first two months of the year, exports increased 19.027 tonnes, or 9.12%, to 227,567 tonnes from 208.540 tonnes, while value soared $607 million, or 45.9%, to $1.930 billion from $1.323 billion, the release said.
Following record-large January shipments, beef export volume to leading market South Korea slowed in February to 19,033 tonnes, down 19% from a year ago, but value still increased 17% to $197.8 million.
Through February, exports to Korea were off to a torrid start in 2022, climbing 8% in volume to 48,611 tonnes and already breaking the $500 million mark in value at $514.2 million, up 57%, the release said.
Strong retail demand for US beef continues, and there is growing optimism for foodservice once Korea works through the current Omicron wave, the USMEF said. Although restaurant restrictions have been minimized, consumers still opted to dine at home as COVID cases surged in February and March.
PORK EXPORTS STRUGGLE
Demand for US pork did not fare as well in the first two months of 2022, as logistics challenges were compounded by lower-priced offerings from competitors, the USMEF said. Like the US, suppliers were shipping significantly lower volumes to China/Hong Kong, which pushed more product into other markets at reduced prices.
February pork exports totaled 198,539 tonnes, down 40,701 tonnes, or 17.0%, from 239,240 tonnes a year ago, while export value fell $88.099 million, or 14.0%, to $541.254 million from $629.353 million, the release said.
Through February, exports also were down 80,549 tonnes, or 16.5%, in volume to 407,347 tonnes from 487,896 tonnes and $175 million, or 13.8%, in value to $1.097 billion from $1.272 billion, the USMEF said.
US pork exports to Mexico reached new heights in 2021 and this strong momentum continued through February, the release said. Exports totaled 73,939 tonnes, up 30% from a year ago, with value increasing 14% to $118.6 million.
January-February exports to Mexico climbed 33% to 160,996 tonnes, with value up 19% to $255.1 million.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $138.00 to $141.00 per cwt, compared with last week’s range of $138.00 to $140.00. FOB dressed steers, and heifers went for $217.13 to $220.09 per cwt, versus $216.58 to $221.36.
The USDA choice cutout Thursday was up $0.36 per cwt at $271.40, while select was up $0.17 at $261.22. The choice/select spread widened to $10.18 from $9.99 with 83 loads of fabricated product and 12 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 steady at $1.40 to $1.55 a bushel over the May futures and for southwest Kansas were unchanged at $0.10 over May, which settled at $7.57 3/4 a bushel, up $0.01 1/4.
No live cattle contracts were tendered for delivery Thursday.
The CME Feeder Cattle Index for the seven days ended Wednesday was $155.59 per cwt up $0.05. This compares with Thursday’s Apr contract settlement $156.40, down $0.70.