Tuesday, October 9, 2018

U.S. Beef Exports Climb, Pork Steady


U.S. beef exports set new records in August with export value topping $750 million for the first time, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). August pork exports were fairly steady with last year’s volume, but retaliatory duties in key markets continued to pressure pork export value.

August beef exports totaled 119,850 metric tons (mt), up 7 percent from a year ago, valued at $751.7 million – up 11 percent year-over-year and easily exceeding the previous record of $722.1 million reached in May 2018. For January through August, beef exports totaled 899,300 mt, up 9 percent from a year ago, while value climbed 18 percent to $5.51 billion.

August exports accounted for 13.2 percent of total beef production, up from 12.5 percent a year ago. For beef muscle cuts only, the percentage exported was 11.2 percent, up from 10.4 percent last year. For January through August, exports accounted for 13.5 percent of total beef production and 11.1 percent for muscle cuts – up from 12.8 percent and 10.1 percent, respectively, last year. Beef export value averaged $320.92 per head of fed slaughter in August, up 11 percent from a year ago. The January-August average was $318.66 per head, up 16 percent.

August pork export volume was down 1 percent from last year at 182,372 mt, while export value fell 3 percent to $494.1 million. Pork muscle cuts fared better in August, increasing 5 percent to 148,736 mt, but value still declined 1 percent to $414.7 million. Pork variety meat exports declined sharply in August in both volume (33,636 mt, down 20 percent) and value ($79.4 million, down 15 percent).

U.S. pork currently faces retaliatory duties in two markets: China and Mexico. China’s duty rate on pork muscle cuts and variety meat increased from 12 to 37 percent in April and from 37 to 62 percent in July. Mexico’s duty rate on pork muscle cuts increased from zero to 10 percent in June and jumped to 20 percent in July (pork variety meats continue to enter Mexico duty-free). Beginning in June, Mexico also imposed a 15 percent duty on sausages and a 20 percent duty on some prepared or preserved hams and shoulders.

Source: U.S. Meat Export Federation

Artwork: Herd of Texas Longhorn Cattle in Southern Utah Mountains 
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Farm Supply


Saturday, September 22, 2018

U.S. Beef Exports Soar, But Pork Suffers Under Tariffs

July exports of U.S. pork and beef were higher than a year ago, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Export value results were mixed, with beef exports posting another near-record month while pork export value declined, reflecting the impact of retaliatory duties imposed by Mexico and China.

Pork exports totaled 176,413 metric tons (mt) in July, up 1.5 percent from a year ago, valued at $465.3 million – down 5 percent year-over-year and the lowest monthly value since February 2016. For the first seven months of the year, pork exports remained 2 percent ahead of last year’s record volume pace at 1.45 million mt, while value was up 3 percent to $3.83 billion.

Led by spectacular performance in South Korea and strong growth in Japan, Taiwan and Latin America, July beef exports climbed 12 percent in volume to 116,575 mt, valued at $722 million – up 16 percent from a year ago and just slightly below the May 2018 record of $722.1 million. For January through July, beef exports established a record pace in both volume (779,450 mt, up 10 percent year-over-year) and value ($4.76 billion, up 20 percent).

With pork exports, July value suffered due to trade headwinds

The duty rate on most U.S. pork entering Mexico increased from zero to 10 percent in early June and from 10 to 20 percent in early July. This took a toll on July exports to Mexico, especially in terms of value. July volume was 56,484 mt, down just 4 percent from a year ago. But pork moved south at lower prices, with value falling 25 percent to $92 million.

In China, the duty rate on U.S. pork and pork variety meat increased from 12 to 37 percent on April 1, and to 62 percent on July 6. July exports to the China/Hong Kong region totaled 22,199 mt, down 31 percent from a year ago, while value dropped 19 percent to $55.9 million. Pork variety meat volume to China was hit especially hard in July, dropping 49 percent from a year ago to 7,446 mt. For January through July, pork and pork variety exports to China/Hong Kong dropped 22 percent year-over-year in volume (238,207 mt) and 10 percent in value ($563 million) – due in part to the higher duty rates, but also due to an upward trend in China’s domestic pork production. 

Source: U.S. Meat Export Federation

Artwork: Pork Carcase Cuts
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Monday, April 9, 2018

U.S. Corn Planted Acres Forecast Lowered


As a result of the March 29th USDA Prospective Plantings and Grain Stocks reports, the outlook for U.S. corn supply‐demand and prices has changed somewhat for both the “old crop” 2017/18 and “new crop” 2018/19 marketing years.   With lower 2018 U.S. corn planted acres forecast in the Prospective Plantings report than previous USDA projections or market expectations, prospects for 2018 U.S. corn production has been reduced. 

At the same time, higher than expected U.S. March 1st corn stocks in the Grain Stocks reporthave signaled lower than expected usage of corn for livestock feeding during December‐February 2018 and in “old crop” MY 2017/18 than has been anticipated.

Following these USDA’s March 29th reports, “old crop” MAY 2018 CME corn futures prices have traded sharply higher.  The day of the reports, MAY 2018 corn futures opened at $3.73 ¾, trading as high as $3.89 ¼ per bushel before closing up $0.14 ¼ for the day at $3.87 ¾.  “New crop” DEC 2018 corn futures traded $0.14 ½ higher to close at $4.11 ½ that same day.  Through Tuesday, April 3rd MAY 2018 corn has traded as high as $3.92 ½ before closing at $3.87 ¼ per bushel.  DEC 2018 corn futures have traded as high as $4.16 before closing at $4.12 ¼ per bushel on April 3rd.     

Source: Kansas State University Ag Economics

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Artwork: Corn



Thursday, March 8, 2018

Solid 2018 Start for U.S. Beef and Pork

January exports of U.S. beef were significantly higher than the large totals of a year ago while pork exports were steady in volume and increased in value, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Beef exports totaled 105,486 metric tons (mt) in January, up 9 percent year-over-year, while export value surged 21 percent to $624.4 million. Exports accounted for 12.4 percent of total beef production in January, up slightly from a year ago. For muscle cuts only, the percentage exported increased from 9.5 percent to 10.1 percent. Beef export value averaged $293.06 per head of fed slaughter, up 14 percent year-over-year.

January pork exports totaled 203,488 mt, steady with last year’s strong volume, while export value increased 7 percent to $545.6 million. Pork exports accounted for 24.7 percent of total pork production, down from 26.2 percent a year ago. For muscle cuts only, the percentage exported declined slightly to 21.5 percent. Pork export value averaged $50.93 per head slaughtered, up 1 percent year-over-year.

For muscle cuts only, beef exports reached 80,495 mt (up 15 percent) valued at $555.7 million (up 23 percent). Pork export volume increased 5 percent to 164,189 mt, while value climbed 9 percent to $454.2 million. Beef variety meat volume fell 5 percent to just under 25,000 mt, but value increased 7 percent to $68.8 million. Pork variety meat exports dropped 16 percent in volume (39,299 mt) but still managed a 2 percent increase in value to $91.5 million.

Source: U.S. Meat Export Federation

Artwork: Rib Eye Steak
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Thursday, December 7, 2017

U.S. Pork, Beef Exports Continue Surge


U.S. pork exports remained ahead of last year’s record volume pace, and beef exports are poised to break $7 billion this year for only the second time, according to October export results released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

October pork exports were the largest since May, totaling 211,592 metric tons (mt), up 5 percent from a year ago, valued at $565.4 million, up 8 percent. Through the first 10 months of the year, pork exports increased 8 percent in volume (2.005 million mt) and 10 percent in value ($5.28 billion) from the same period last year.

Exports accounted for 25.4 percent of total pork production in October (steady with last year) and 21.6 percent for muscle cuts only (up slightly from a year ago). For January through October, these ratios increased about one percentage point from a year ago to 26.4 percent of total production and 22 percent for muscle cuts. October export value averaged $51.41 per head slaughtered, up 9 percent from a year ago and the highest since July. Through the first 10 months of the year, per-head export value was $52.64, up 7 percent.

Beef exports reached 111,287 mt in October, up 5 percent from a year ago, valued at $662 million, up 18 percent. These were the second-largest monthly totals of 2017, trailing only August. For January through October, exports totaled 1.038 million mt, up 9 percent year-over-year, valued at $5.93 billion – up 16 percent from a year ago and slightly ahead of the record value pace established in 2014.

Beef exports accounted for 13 percent of total production in October, the highest since July but down from 13.9 percent last year. The percentage of muscle cuts exported was steady with last year at 10.7 percent. For January through October, beef exports accounted for 12.8 percent of total production (down from 13.3 percent last year) and 10.2 percent for muscle cuts (steady with last year).

October beef export value averaged $301.88 per head of fed slaughter, up 12 percent from a year ago and the highest since December 2016. January-October export value averaged $279.85 per head, up 10 percent.

Source: U.S. Meat Export Federation

Artwork: Pork Loin
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Saturday, September 9, 2017

U.S. Beef Exports Strong in July; Pork Exports Lower


U.S. beef exports remained well above last year’s pace in July, posting one of the highest monthly export value totals on record, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF). July pork export volume dipped below its year-ago level for the first time in 15 months, with export value also down slightly.

July beef exports totaled 104,488 metric tons (mt), up 5 percent year-over-year, while export value reached $623.7 million – up 18 percent from a year ago and the highest since December 2014. For January through July, exports increased 11 percent in volume (711,364 mt) and 15 percent in value ($3.97 billion) compared to the first seven months of last year.

Exports accounted for 13.2 percent of total U.S. beef production in July and 10.7 percent for muscle cuts only. These were the highest ratios of 2017, but down from 14.2 percent and 11 percent, respectively, last July. For January through July, beef exports accounted for 12.8 percent of total production and 10 percent for muscle cuts – roughly steady with last year. Export value per head of fed slaughter averaged $299.21 in July, up more than $35 (or 13 percent) from a year ago. Through July, per-head export value was up 9 percent to $273.52.

Pork exports totaled 173,675 mt in July, down 4 percent year-over-year, valued at $488.9 million, down 0.6 percent. January-July volume was still up 11 percent from a year ago to 1.43 million mt, while export value was up 13 percent to $3.7 billion.

Exports accounted for 26 percent of total pork production in July (down from 27.5 percent a year ago) and 21 percent for muscle cuts only (down from 23 percent). For the first seven months of the year, with U.S. production at a record pace, the percentage of total production exported increased from 25.6 percent to 27.5 percent. For muscle cuts only, the increase was from 21.6 percent to 23 percent. Export value per head slaughtered in July was $54.22 – up slightly from June but 3 percent below last July. The January-July per-head average increased 10 percent from a year ago to $54.11.

Source: U.S. Meat Export Federation

Artwork: Prime Rib Roast
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Friday, July 7, 2017

Red Meat Exports Continue Strong

U.S. pork and beef exports posted a strong May performance, increasing significantly from the previous month and from year-ago levels, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Pork exports reached 222,015 metric tons (mt) in May, up 11 percent year-over-year and the fourth-largest monthly volume on record. Pork export value was $583.2 million, up 16 percent. For January through May, exports increased 14 percent from a year ago in volume (1.05 million mt, a record pace) and 18 percent in value ($2.68 billion).

Even with the growth in U.S. pork production, exports account for a larger share in 2017. May exports equated to 29.4 percent of total production and just under 25 percent for muscle cuts only – up from 28.4 percent and 24.3 percent, respectively, last year. Through the first five months of 2017, exports accounted for 27.9 percent of total production and 23.2 percent for muscle cuts (up from 25.2 percent and 21.3 percent). Exports are also commanding higher prices, indicative of strong demand across a wide range of international markets. Export value per head slaughtered averaged $58.61 in May, up 7 percent from a year ago. The January-May average was $54.23, up 14 percent.

May beef exports totaled 105,321 mt, up 6 percent from a year ago, valued at $582.6 million, up 9 percent. For January through May, beef exports were up 12 percent in volume (497,322 mt) and 16 percent in value ($2.75 billion) compared to the same period last year.

Exports accounted for 13 percent of total U.S. beef production in May and 10 percent for muscle cuts only – each down one percentage point from a year ago. Through May, these ratios were steady with last year’s pace – 12.8 percent for total production and 10 percent for muscle cuts. Export value per head of fed slaughter averaged $265.55 in May, matching the average from a year ago. Through May, per-head export value averaged $270.27, up 8 percent. Beef export prices are also increasing, especially in key Asian markets, with double-digit increases in Japan and Korea in May illustrating the strong demand for U.S. beef.

Source: U.S. Meat Export Federation

Artwork: red meat with a knife
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