US beef exports soared to another new value record in March, according to data released by USDA and compiled by the US Meat Export Federation.
A USMEF release also said March pork exports were the largest so far this year but well below the record-large totals posted in March 2021.
BEEF EXPORTS UP SHARPLY
Beef exports totaled 126,285 tonnes in March, up 1,477 tonnes, or 1.18%, from 124,808 tonnes a year ago and the third largest on record, while value climbed $268.198 million, or 33.4%, to a record $1.070 billion from $801.918 million.
First-quarter exports increased 6% to 353,852 tonnes from 333,348 tonnes, valued at $3.000 billion, up $875.565 million, or 41.2%, from $2.124 billion.
“Global demand for US beef has eclipsed anything I have seen in many years in the meat business,” said USMEF President and CEO Dan Halstrom, in the release. “While this momentum is fueled by mainstay markets such as South Korea, Japan and Taiwan, demand is also very strong in China/Hong Kong and key Latin American markets, while exports to the Middle East have rebounded impressively.”
In fact, South Korea emerged as the top destination for US beef in the quarter, taking 75,445 tonnes, compared with 68,996 tonnes a year ago.
Halstrom cautioned that first-quarter results do not reflect the full effect of recent COVID-19 lockdowns in China that have slowed product movement and forced many restaurants to suspend or limit service. These obstacles were thought likely to have a greater effect on April and May export data. Inflation also represents a potential headwind, he said.
PORK EXPORTS BELOW YEAR-AGO
March pork exports totaled 222,581 tonnes, the USMEF said, the largest since November but 72,143 tonnes, or 24.5%, less than the record volume of 294,724 tonnes achieved a year ago. Export value was $615.330 million, also the highest since November but down $179.608 million, or 22.6%, from $704.938 million last year.
First-quarter pork exports fell 152,692 tonnes, or 19.5%, from a year ago to 629,928 tonnes from 782,620 tonnes. They were valued at $1.712 billion, down $354.861 million, or 17.2%, from $2.067 billion.
“While pork exports were down significantly from last year’s record, we saw some encouraging trends in the March results,” Halstrom said in the release. “US pork commanded a higher price per pound than a year ago, with outstanding demand from Mexico and value growth in key markets such as South Korea and the Dominican Republic.
“The stronger US dollar creates more price pressure in some destinations, but this will be offset to some degree by the narrowing price gap between US and European pork,” he said.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $137.25 to $147.00 per cwt, compared with last week’s range of $137.25 to $147.00. FOB dressed steers, and heifers went for $220.50 to $228.60 per cwt, versus $220.50 to $228.60.
The USDA choice cutout Monday was up $3.85 per cwt at $258.29, while select was down $1.93 at $243.13. The choice/select spread widened to $15.16 from $9.38 with 94 loads of fabricated product and 36 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 unchanged at $1.55 to $1.65 a bushel over the Jul futures and for southwest Kansas were steady at even the Jul, which settled at $7.72 a bushel, down $0.12 3/4.
The CME Feeder Cattle Index for the seven days ended Friday was $156.21 per cwt up $0.70. This compares with Monday’s May contract settlement of $159.80, up $0.25.