Monthly US beef exports in January were 233 million pounds, 4% less than last year and 8% less than the 2019–23 average, the USDA said Thursday in its monthly Livestock, Dairy, and Poultry Outlook.
US pork exports began 2024 strong with January shipments about 588 million pounds, almost 6% more than a year ago, the USDA report said. As has become customary, shipments to Mexico led the pack, with 236 million pounds, up 3.2%. from last year.
Broiler exports totaled 608.7 million pounds in January, a decrease of 3.4% from January 2023.
BEEF EXPORTS TO CHINA DOWN
January beef exports to China were about 4 million pounds lower year over year, a 12% decrease, but were about mid-range of where monthly exports have been since ramping up in 2020, the USDA said.
Exports to Taiwan also were 4 million pounds less than last year, though for a much smaller market this was about a 28% decrease, the USDA said.
Exports to Japan were 11% lower year over year, while exports to South Korea were 3% lower, the USDA said. Reduced exports to Asia were offset partially by a 17% increase in exports to Mexico, where the peso continued to strengthen against the US dollar, making US beef more competitive.
On a global scale, US beef was expected to remain less competitive, especially as Australian beef production increases, the USDA said. Australia has emerged from the rebuilding phase of the cattle cycle, and its production continues to increase.
There are some indicators of drier weather across Australia, leading producers to retain fewer cattle in order to maintain feed availability, the USDA said. According to the Australian Bureau of Agricultural and Resource Economics and Sciences Agricultural Commodities Report from March 2024, increased cattle slaughter and beef production were expected to lead to a 21% increase in exports during their 2023–24 marketing year (July–June).
MEXICO DOMINATES FOREIGN PORK MARKETS
January pork shipments to Mexico led the pack, with 236 million pounds, up 3.2% from last year and 40% of US pork exports, the USDA said. The next-largest buyer, Japan, accounted for 15%, less than 40% of Mexico’s share.
Among buyers of US pork in January, South Korea stood out, buying almost 52% more than a year ago, the USDA said. Data grom the Government of South Korea shows strong 2023 import demand carried over with more than 11,000 tonnes of US pork exports, almost 28% more than a year ago.
Most EU states exported lower volumes to South Korea in January, with the exception of Spain and the Netherlands, the USDA said.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $185.00 per cwt to $190.74, compared with last week’s range of $183.58 to $186.24 per cwt. FOB dressed steers, and heifers went for $287.48 per cwt to $293.35, compared with $287.28 to $292.50.
The USDA choice cutout Thursday was up $0.96 per cwt at $310.78 while select was up $0.65 at $301.69. The choice/select spread widened to $9.09 from $8.78 with 86 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The daily weighted average USDA listed wholesale price for fresh 90% lean beef was $324.01 per cwt, and 50% beef was $108.44.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.55 to $1.75 a bushel over the May corn contract, which settled at $4.33 3/4 a bushel, down $0.07 1/2.
The CME Feeder Cattle Index for the seven days ended Wednesday was $248.46 per cwt, up $0.27. This compares with Thursday’s Mar contract settlement of $247.47, down $2.80.