February 22, 2011

US beef exports surpass beef imports

US beef exports exceeded more than its imports in 2010 for the first time since 1947, as beef imports decreased 12.5% last year while beef exports rose 18.9% compared to the year before.

For the first year since 1947, the US exported more beef in 2010 than we imported. In total, 2010 beef exports equalled 8.74% of US beef production and imports equalled 8.73% of our production.

The four biggest foreign buyers of US beef last year were Mexico, Canada, Japan and South Korea, respectively. Together they purchased 66% of our total beef exports. The biggest growth market last year was South Korea which bought 136 million pounds more US beef than in 2009.

Three countries, Canada, Australia and New Zealand, accounted for 83% of US beef imports in 2010. The biggest drop in imports was in shipments of beef from Australia. They were down 225 million pounds compared to 2009.

The value of beef exports (US$3.5 billion) exceeded the value of beef imports by US$700 million. The value of beef exports were up US$858 million compared to 2009. Last year we exported US$105 worth of beef for each head of cattle slaughtered, up from US$78/head in 2009. We exported more beef than we imported in only four months of 2010, but they were the last four. This bodes well for continued strong beef exports in 2011.

The boxed beef cutout value was lower this week. On Friday morning, the choice boxed beef carcass cutout value was US$166.96/cwt, down US$1.17 for the week. The select cutout was down US$1.72 from the previous Friday to US$166.23 per hundred pounds of carcass weight. The narrow spread between choice and select was negative earlier in the week.

Fed cattle prices were higher this week. The five-area daily weighted average price for slaughter steers sold through Thursday of this week on a live weight basis was US$106.99/cwt, up US$1.69 from a week earlier. Steers sold on a dressed weight basis this week averaged US$174.89/cwt, US$5.35 high than the week before. This week last year, slaughter steer prices averaged US$88.79/cwt live and US$144.48/cwt dressed.

This week's cattle slaughter totalled 651,000 head, up 2.2% from the week before and up 4.7% compared to the same week last year. Steer carcass weights averaged 845 pounds during the week ending February 5. That was down one pound from the week before but 12 pounds heavier than a year ago.

Cash bids for feeder cattle around the country this week were steady to US$8 higher. Oklahoma City auction prices were US$3 to US$6 higher with price ranges for medium and large frame #1 steers: 400-450# US$159-$167.75, 450-500# US$158-$164, 500-550# US$147-$160, 550-600# US$138.25-US$147.50, 600-650# US$135-$142, 650-700# US$129.50-$137, 700-750# US$127.50-$132.50, 750-800# US$126.50-$130, and 800-1000# US$113.75-$126/cwt.

The February fed cattle futures contract ended the week at US$111.05/cwt, up US$3.28 from a week ago. The April contracted closed out the week at US$115.15/cwt, up US$2.45 for the week.