US pork exports trended higher year-over-year in January, led by another outstanding performance from leading market Mexico, according to data released by the USDA and compiled by the US Meat Export Federation.
And, in a release, the USMEF said January beef exports were lower than a year ago because of the prolonged lockout by China, but export value per head of fed slaughter was more than $415 – the highest since March and reflecting solid demand in other markets. Beef variety meats were a major bright spot, with export value topping the previous monthly high reached in December.
PORK EXPORTS RISE
January pork exports totaled 250,861 tonnes, up 6,895 tonnes, or 2.83%, from 243,965 tonnes a year ago, while value increased $24.041 million, or 3.60%, to $692.088 million from $668.047 million, the USMEF said.
In addition to Mexico, exports were larger year-over-year to Japan, South Korea, Canada, Central America, Colombia, the Dominican Republic, the ASEAN and Taiwan, the USMEF said.
“Very impressive start to the year for US pork in Mexico and other Western Hemisphere markets, but strengthening demand in Asian destinations is especially encouraging,” said USMEF President Dan Halstrom, in the release. “The US industry continues to capitalize on consumers’ growing demand for convenience-oriented products at both retail and foodservice, and this is reflected in our recent export results.”
BEEF EXPORTS DECLINE
Beef exports totaled 92,558 tonnes in January, down 10,282 tonnes, or 10.0%, from 102,840 tonnes last year, the USMEF said. But value fell just $24.549 million, or 3.05%, to $780.060 million from $804.609 million, as exports commanded higher prices.
Beef variety meat exports were especially strong in January, increasing 1,673 tonnes, or 6.47%, from a year ago to 27,511 tonnes from 25,838 tonnes, while value soared $39.584 million, or 45.8%, to a record $126.015 million from $86.431 million.
Beef prices still were not being maximized to the degree that would be possible with China back in the mix, the USMEF said. When excluding China from the January results, exports increased 5% in volume and climbed 16% in value.
January beef shipments trended higher year-over-year to Korea, Japan, Taiwan, the Caribbean, the ASEAN and South America, with export value also increasing to Mexico, Canada and Central America.
“Beef variety meat value reaching new heights for the second consecutive month is great news for cattle producers and for the entire supply chain,” Halstrom said in the release. “With cattle numbers being tight, it is more critical than ever to maximize the value of every animal. And while much of this export growth was driven by tongues and skirts going to Japan, demand was strong in a wide range of markets.”
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $235.89 per cwt to $238.16, compared with last week’s range of $239.92 to $246.64 per cwt. FOB dressed steers and heifers went for $376.01 per cwt to $377.44, compared with $376.66 to $382.97.
The USDA choice cutout Monday was up $4.74 per cwt at $402.66 while select was up $2.97 at $394.51. The choice/select spread widened to $8.15 from $6.38 with 47 loads of fabricated product and nine loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $433.15 per cwt, and 50% beef was $192.93.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $0.90 to $1.05 a bushel over the May corn contract, which settled at $4.54, down $0.13 1/4.
The CME Feeder Cattle Index for the seven days ended Friday was $357.05 per cwt, down $1.30. This compares with Monday’s Mar contract settlement of $355.45, up $5.97.