US Beef Export Numbers Paint a Picture of a Robust Demand Environment in the Global MarketplaceWed, 12 Sep 2018 10:48:14 CDT
This past week, the US Department of Agriculture released the latest US beef export numbers, compiled in a report by the US Meat Export Federation. On first glance, the numbers look pretty good. However, Jim Robb of the Livestock Marketing Information Center says that is an understatement, asserting that the numbers in this report for July are really quite robust with stronger results than anticipated.
“Overall, on a tonnage basis, US beef exports were up 17 percent for the month compared to a year ago for July. That’s pretty robust,” he said. “We had South Korea year-over-year up 61 percent and Mexico up 17 percent- but this was the best month in the last 46 months in sales to Mexico on a tonnage basis. And, we had Japan up 13 percent. Also, in the international marketplace, prices have been at or slightly above a year ago.”
Robb says when you put that all together in terms of a demand perspective, that implies a robust demand environment- quite the contrast with the lackluster numbers on the pork and poultry side that is beginning to show weakness under the pressure of the ongoing international trade spats. Robb believes that fundamentally, demand for quality US beef is the driving force behind this burgeoning momentum. Perhaps not immediately, but Robb contends that this sets a stage for a marketplace that can help fed cattle markets rebound from current levels.
“We think so. We’re watching as we look ahead to the second half of 2019, which is a ways down the road, to the worldwide economic growth and that will be one of the keys to sustaining these levels,” Robb said. “In fact, at the LMIC, we raised our third quarter export higher.”
Listen to Robb’s analysis of the current beef export market based on the latest USDA numbers, with Radio Oklahoma Ag Network Farm Director Ron Hays, on today’s Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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