Weekly US Cattle Outlook: Beef Exports Up In May

US - Weekly Cattle Outlook, 6th November 2009, a weekly review of the US cattle industry, written by Glenn Grimes and Ron Plain.

19 July 2010

3 minute read

North America

Ron Plain

Beef exports in May were up 26.8 per cent compared to a year earlier. Our two biggest foreign customers, Mexico and Canada purchased less US beef in May, but Japan, South Korea, Vietnam and Egypt purchased a lot more than in May 2009. In total, 9.7 per cent of US May beef production was exported.

Beef imports were down 2.2 per cent in May. Australia and Brazil shipped less to us while Canada and New Zealand sent us more beef than in May 2009. May beef imports equaled 11.1 per cent of US production.

The overall trend in beef trade is quite encouraging. For the first five months of the year, beef imports were down 16.3 per cent and beef exports were up 26.3 per cent.

Cattle imports from Mexico and Canada were both down from April but up compared to May 2009.

The boxed beef cutout declined just a bit this week. On Friday morning, the choice boxed beef carcass cutout value was $1.5421/pound, down 0.27 cents for the week, but 17.74 cents higher than last year. The select cutout was down 0.08 cents from the previous Friday to $1.4465 per pound.

Fed cattle prices rose for the third week in a row. The 5-area daily weighted average price for slaughter steers sold through Thursday of this week on a live weight basis was $93.41/cwt, up $1.58 from a week earlier and $10.41 higher than a year ago. Steers sold on a dressed weight basis this week averaged $150.20/cwt, $1.96 higher than the week before and $20.76 higher than last year.

This week's cattle slaughter totaled 666,000 head, up 10.6 per cent from the previous week (which was low because of Independence Day) and up five per cent compared to the same week last year. Year-to-date, beef production is down one per cent.

Steer carcass weights averaged 827 pounds during the week ending July 3. That was up three pounds from the week before, but 13 pounds lighter than a year ago. This was the 32nd consecutive week with steer weights below year earlier levels.

Cash bids for feeder cattle this week were mostly in the range of $2 lower to $2 higher. Because of the Independence Day holiday Oklahoma City did not have a sale this week. The price ranges at Oklahoma City for medium and large frame steers were: 400-450# $137.50-$146, 450-500# $133-$139, 500-550# $132-$138.50, 550-600# $120-$128, 600-650# $112-$124, 650-700# $108-$119.50, 700-750# $112-$116.50, 750-800# $111.25-$115.50, and 800-1000# $98.50-$111/cwt.

The August fed cattle futures contract ended the week at $92.27/cwt, up $2.07 compared to the previous Friday. The October contract gained $2.22 this week to end at $93.62/cwt. The December contract settled at $95.65 and February ended the week at $96.83.

Feeder cattle futures ended the week slightly lower as corn prices moved higher.