US beef exports to Japan continue to grow, with a 41% jump in February on the same time last year to 8,516 tonnes cwt, despite the limitation that all US beef products be derived from cattle less than 21 months of age, according to the USDA.

A likely premise for higher beef exports to Japan was a lift in US cattle on feed numbers on year ago levels, between September and November 2009. This lift in fed cattle numbers saw a boost in US beef production during November and December on the same time in 2008, increasing fed beef supply eligible for the Japanese market for the beginning of this year.

The outlook is for US beef supply to tighten over coming months, as US cattle on feed numbers for the past five months (December 2009 to April 2010) have declined progressively on-year. This will limit the availability of product for export and possibly domestic use - US prices have already increased significantly due to supply shortages.

In other global markets, US beef exports to Mexico continue to remain lower on year ago volumes, down 2% during February to 17,980 tonnes cwt. Economic conditions in Mexico are yet to recover, with the depressed Mexican Peso against the US dollar affecting the affordability of US beef.

US beef exports to Canada increased 21% in February on the same time last year, to 11,207 tonnes cwt, as the Canadian dollar strengthened against the US dollar.