July 20, 2012

Rising fed cattle imports from Mexico and Canada to US

A recent USDA Livestock, Dairy and Poultry Outlook reveals that Mexico's and Canada's fed cattle imports into the US are rising.

US cattle imports through May were up 21% on-year with imports from Mexico and Canada up 29% and 7%, respectively.

Drought conditions extending into Mexico have continued pulling imports of feeder cattle northward. The price differential between Mexico City feeders and imported 500-600 pound feeder cattle has also continued widening thus far through much of the year to date. USDA's Agricultural Marketing Service (AMS) weekly reports show Mexican cattle imports increasing at higher rates through June as imports are 31% higher on-year .

Canadian cattle imports through June are 9% higher on-year. The increase in imports from Canada has been primarily in feeder cattle, a 92% increase on-year. Canadian feeder cattle prices have deteriorated in recent weeks due to due grain cost uncertainty and limited demand for feeders in Canadian feedlots.

Total US cattle imports for 2012 are forecast at 2.175 million head as conditions for stronger over-year imports from both Canada and Mexico are expected to continue. US cattle imports for 2013 are forecast at two million head.