August 20, 2008

 

US imports less cattle from Mexico, more from Canada

 
 

The US is likely to see more Canadian feeder cattle imports from Canada and less from Mexico, according to the USDA.

 

US imports of live cattle totaled 1.245 million head through June this year.

 

Imports from Mexico have dropped 34 percent from last year, totaling 355,999 head, according to official trade statistics.

 

Aample precipitation this summer and good grazing conditions, allowed for the potential of above-average imports later in the year.  Historically, the fourth quarter has the highest amount of imports from Mexico. 

 

Cattle may have been kept in Mexico due to the good grazing conditions, but this would not become evident until the fall, the USDA said.

 

Imports of Canadian cattle, on the other hand, have been 46 percent above last year's totals through June.

 

This has primarily been driven by the increase in feeder cattle from Canada; a trend that started in the fourth quarter of last year as Canadian ranchers struggled with high feed costs and a stronger Canadian dollar.

 

However, weekly AMS reports show a decrease in US imports of feeder animals in July. Historically, imports of Canadian cattle have exhibited an annual trough in June and July, before increasing again in August through the end of the year.

 

This year's total US imports of cattle are expected to be 2.65 million head, an increase of 6 percent. Next year's imports are expected to fall to 2.5 million head, as fewer Canadian feeder cattle are expected.

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