US Pork Exports Sparkle; Beef Not So Much

Led by another outstanding month in Mexico and robust demand for variety meat, exports of US pork continued to gain momentum in May, according to data released by USDA and compiled by the US Meat Export Federation.

While well below the record-large volume and value posted in May 2022, beef exports rose from April and were the second largest (behind March) of 2023, the USMEF said in a release.

 

PORK EXPORTS STRONG

 

May pork exports reached 261,361 tonnes, up 36,684, or 16.3%, from 224,677 a year ago, the ninth largest on record and the largest since May 2021, the USMEF said.  Export value climbed $76.029 million, or 11.6%, to $731.091 million from $655.062 million, also the highest since May 2021 and the seventh highest on record.

Pork variety meat exports were particularly outstanding in May, setting a value record of $126.959 million, up $24.413 million, or 23.8%, from $102.546 million last year.  Volume was 51,826 tonnes, up 10,991, or 26.9%, from 40,835 a year ago.

Through the first five months of the year, pork and pork variety meat exports were 155,000 tonnes, or 14.5%, above last year’s pace at 1.222 million tonnes from 1.067 million, valued at $3.355 billion, up $387 million, or 13.0%, from $2.968 billion.

Pork exports to leading market Mexico remained on a record-shattering pace in May, soaring 21% from a year ago to 96,811 tonnes and climbing 16% in value to $198.9 million, the USMF said.  This pushed January-May export volume to 447,081 tonnes, up 13% from a year ago, while value increased 24% to $890.1 million.

While most pork shipments to Mexico were muscle cuts, Mexico’s demand for pork variety meat also strengthened this year, the USMEF said.  Through May, variety meat shipments increased 46% to 64,232 tonnes, valued at $111.4 million (up 40%).

 

BEEF EXPORTS LAG

 

Beef exports in May totaled 116,159 tonnes, down 18,847, or 14.0%, from the May 2022 record of 135,006 tonnes but up 4,743 tonnes, or 4.26%, from the previous month’s 111,416-tonne total.  Export value was $874.720 million, down $211.776 million, or 19.5%, from last year’s 1.086 million but $15.215 million, or 1.77% above April’s $859.505 million.

For January through May, beef exports were down 59,197 tonnes, or 9.65%, to 554,069 tonnes from 613,266 tonnes last year, valued at $4.087 billion, down $1.054 billion, or 20.5%, from $5.141 billion.

For many markets, May beef exports trended below last year’s record-setting totals, the USMEF said, but Mexico was a strong exception, with shipments climbing 9% to 17,254 tonnes, valued at $94.2 million (up 14%).

Through the first five months of the year, exports to Mexico were 13% above last year 82,166 tonnes, with value up 17% to $459.6 million.

 

CATTLE, BEEF RECAP

 

The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $178.00 per cwt to $185.67, compared with last week’s range of $177.10 to $190.00 per cwt.  FOB dressed steers, and heifers went for $282.79 per cwt to $285.96, compared with $280.53 to $289.54.

The USDA choice cutout Tuesday was down $1.67 per cwt at $312.12 while select was off $2.09 at $280.24.  The choice/select spread widened to $31.88 from $31.46 with 123 loads of fabricated product and 38 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 $1.75 to $1.95 a bushel over the Sep corn contract, which settled at $4.94 1/2 a bushel, up $0.02 1/4.

The CME Feeder Cattle Index for the seven days ended Monday was $238.33 per cwt, down $0.33.  This compares with Tuesday’s Aug contract settlement of $247.15 per cwt, up $0.90.