In 2014, the U.S. beef export value hit a record-high of $7.13 billion—up 16 percent and nearly $1 billion from the previous record set in 2013. This is good news for beef producers, as opportunities to market beef to a growing middle class around the world adds value to each beef animal sold in the U.
After going through a long period of relative stability in the world grain markets, there have been some major interventions in the past few years. Most of these have occurred in the former Soviet Union (FSU), but some of the actions by China also have had drastic impacts.
“Delayed feedlot marketings, down 9 percent yearover-year in January, have allowed feedlot inventories to hold close to year-ago levels but feedlot production continues to fall,” explained Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist.
All told, 2.38 million head were slaughtered under federal inspection during January 2015. This is down 10 percent from January 2014. This produced 1.94 billion pounds of beef, down 8 percent from January 2014’s 2.11 billion pounds of federally inspected beef.
At 490.94 million pounds of beef in cold storage as of Jan. 31, beef stocks are up 14 percent compared to the prior year. Though boneless beef makes up roughly 90 percent of all the beef in freezers, both the volume of boneless beef and beef cuts rose 14 percent.
Between 1960 and 2007, the share of disposable personal income spent on total food by Americans fell from 17.5 to 9.6 percent, as the share of income spent on food at home fell. The share of income spent on food purchased in grocery stores and other retailers declined from 14.
Australia is one of the world’s major beef producers and exporters, exporting roughly three-quarters of its total production. It was also the number one source of beef (not cattle) imported into the U.S. in 2014. The vast majority of the beef imported from Australia into the U.
The cash fed trade was slow and developed warily last week as other portions of the market moved erratically. By Thursday afternoon, more than 18,000 had been confirmed sold at $156-157 live and $250-252 dressed. This was down $3-4 live and down $1-8 dressed compared to the prior week.
The football season has long since ended and baseball hasn’t yet started. So in the meantime, perhaps your strategy needs can be sated with a peak at a different sort of playbook. Brazil is the U.S.’ biggest beef competitor so it’s important to keep tabs on what it’s doing.
The issue of the West Coast ports—and the effect that has had on beef trade—was the story of the week last week. Everything from cash fed trade to the futures turned on the slowdown in export demand and the prospect of more competing protein and beef needing to be absorbed by the domestic market.