Although cattle imports and export totals sound large in absolute numbers, the role of imported cattle is rather modest in domestic markets, said Derrell Peel, Oklahoma State University livestock marketing specialist in a letter to Extension Agents called Cow-Calf Corner.
Imports of slaughter cows/bulls for the first seven months of 2022 accounted for 2.8% of total cow and bull slaughter in the US during the period, Peel said. Imported fed cattle accounted for 1.2% of total steer and heifer slaughter during the same period.
Net imports of feeder cattle from Mexico and Canada from January–July represented 1.3% of the estimated feeder supply on July 1, he said.
TRADE INTEGRATED, IMPORTANT
The integration of North American beef and cattle markets includes trade in live cattle between Canada, Mexico and the US, Peel said. For the year to date, US cattle imports totaled 951,910 head, down 6.3% year over year.
Total cattle exports thus far in 2022 were 192,415 head, down 36.7% from the record total last year, he said. Net cattle imports for the January–July period were 759.495 head, up 6.7% year over year.
MEXICAN IMPORTS
Cattle imports from Mexico for the year to date were down 30.2% year over year, Peel said. The seven-month year total of 488,449 head was the smallest since 2009.
More than 99% of cattle imports from Mexico consist of feeder cattle, which included 84.6% steers and 15.4% heifers thus far in 2022, he said.
Year-to-date cattle exports to Mexico were 64,226 head, up 73.7%, of which 79.95 were feeder cattle, with the remainder purebred beef and dairy animals, Peel said. Net cattle imports from Mexico were down 36.0% from last year.
CANADIAN IMPORTS
Cattle imports from Canada include slaughter and feeder cattle, he said. For the January–July period, total cattle imports from Canada are 463,461 head, up 46.7% year over year.
That included 307,302 head of slaughter cattle consisting of 40.1% slaughter cows/bulls and 59.9% fed steers and heifers. Imports of slaughter cows/bulls were up 13.8% year over year, and imports of fed cattle were up 28.4%.
A total of 146,845 head of feeder cattle have been imported from Canada in the first seven months of the year, with heifers making up 78.9% of total feeder imports, Peel said. Feeder cattle imports were up 152.6% for the January–July period.
US exports of feeder cattle to Canada accounted for 96.2% of the total 120,594 head of cattle exports to Canada in the January–July period, he said. This was down 52.7% from the record in 2021.
Combined net feeder cattle imports from Mexico and Canada were down 2.7% year over year for the first seven months of 2022, Peel said.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $141.72 to $144.73 per cwt, compared with last week’s range of $141.00 to $150.00. FOB dressed steers, and heifers went for $221.34 to $224.93 per cwt, versus $223.30 to $228.00.
The USDA choice cutout Tuesday was down $2.28 per cwt at $256.66 while select was up $2.18 at $233.58. The choice/select spread narrowed to $23.08 from $23.18 with 120 loads of fabricated product and 53 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $2.65 to $2.75 a bushel over the Dec futures and for southwest Kansas were steady at $0.85 over Dec, which settled at $6.92 3/4, down $0.03 1/4.
The CME Feeder Cattle Index for the seven days ended Monday was $180.06 per cwt down $0.85. This compares with Tuesday’s Sep contract settlement of $179.45, down $2.07.