July Beef Exports Build; Pork Still Strong

Exports of US beef continued to build momentum in July, according to data released by the USDA and compiled by the US Meat Export Federation.

A USMEF release added that pork exports also were well above year-ago levels in July, led by a value record for shipments to Mexico.

 

BEEF EXPORTS UP 7%

 

July beef exports totaled 110,419 tonnes, up 7,252, or 7.03%, from 103,167 tonnes a year ago and the second largest of 2024, the USMEF said.  Export value climbed $100.480, or 12.4%, to $910.925 million from $810.445 million, also the second highest this year.

For January through July, beef export value increased 6%, to $6.134 billion from $5.807 billion, despite a 2% decline in volume to 754,152 tonnes from 772,343 tonnes, the USMEF said.

Following a solid June performance, July beef exports to Japan reached 22,031 tonnes, up 14% from a year ago, while export value climbed 17% to $175 million, the USMEF said.  These results pushed January-July exports even with last year’s pace at 149,051 tonnes, while export value increased 7% to $1.15 billion.

Although Japan’s economy continues to struggle, surging tourism has been a bright spot and has bolstered demand for US beef in the foodservice and hospitality sectors, the USMEF said.

While the yen has strengthened in recent weeks versus the US dollar it still weighed on July exports, trading in the 160 range in the first half of the month, the USMEF said.  Japan’s real consumer incomes increased in June and July, following 27 months of declining wages in inflation-adjusted terms.

 

PORK EXPORTS UP 10%

 

July pork exports reached 241,210 tonnes, up 22,196, or 10.1%, from 219,014 tonnes a year ago, the USMEF said.  Export value jumped $81.795 million, or 13.0%, to $710.497 million from $628.702 million, fueled in part by a record $244.535 million for leading market Mexico.

Through the first seven months of 2024, pork exports were 71,000 tonnes, or 4.21%. more than last year at 1.758 million tonnes from 1.687 million, the USMEF said.  Export value was $4.973 billion – up $298.0 million, or 6.37%, from $4.675 billion a year ago, when pork exports set an annual value record of $8.16 billion.

After softening modestly in June, pork exports to leading market Mexico roared back in July at $244.5 million – up 29% from a year ago and the highest on record, the USMEF said.  Export volume also was outstanding, climbing 24% to 100,577 tonnes.

January-July exports were on a record pace, climbing 8% above last year at 663,777 tonnes, while export value jumped 15% to $1.45 billion, the USMEF said.  Surging Mexican hog prices and limited availability contributed to the increase in demand.

 

CATTLE, BEEF RECAP

 

The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $181.50 per cwt to $181.82, compared with last week’s range of $181.21 to $188.70 per cwt.  FOB dressed steers, and heifers went for $287.53 per cwt to $287.92, compared with $287.36 to $291.88.

The USDA choice cutout Monday was down $0.89 per cwt at $308.52 while select was up $2.37 at $298.49.  The choice/select spread narrowed to $10.03 from $13.29 with 110 loads of fabricated product and 31 loads of trimmings and grinds sold into the spot market.

The weighted average USDA listed wholesale price for fresh 90% lean beef was $376.88 per cwt, and 50% beef was $126.01.

The USDA said basis bids for corn from feeders in the Southern Plains were up $0.02 at $1.31 to $1.41 a bushel over the Dec corn contract, which settled at $4.07 1/4 a bushel, up $0.01.

The CME Feeder Cattle Index for the seven days ended Friday was $243.92 per cwt, up $1.74.  This compares with Monday’s Sep contract settlement of $237.72, up $3.42.