Daily Market Highlights

Cattle futures extended gains Wednesday, buoyed by stronger wholesale beef prices, upward cash momentum and weaker Corn futures.

Feeder Cattle futures closed an average of 89¢ higher (25¢ to $1.65 higher).

Live Cattle futures closed an average of $1.20 higher (88¢ to $1.83 higher).

Choice Boxed beef cutout value was $2.61 higher Wednesday afternoon at $253.39/cwt. Select was 91¢ higher at $222.19/cwt.

Negotiated cash fed cattle trade ranged from very limited on moderate demand to inactive on light to moderate demand through Wednesday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service. There were some early live sales at $147/cwt. in the Southern Plains and at $150 in the western Corn Belt

Last week, live prices were $145/cwt. in the Southern Plains and $148 in Nebraska and the Western Corn Belt. Dressed prices were $232 in Nebraska and $230-$232 in the western Corn Belt.

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Major U.S. financial indices paused the recent rally Wednesday as the U.S. 10-year treasury note traded at its highest level in 14 years.

The Dow Jones Industrial Average closed 99 points lower. The S&P 500 closed 24 points lower. The NASDAQ was down 91 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.60 to $2.73 higher through the front six contracts.

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USDA’s Economic Research Service (ERS) raised estimated U.S. beef exports for next year — compared to the previous month’s forecast — based on strong Asian demand.

“Demand for U.S. beef in East and Southeast Asia has been especially strong this year,” explains ERS analysts in the monthly Livestock, Dairy and Poultry Outlook. The increase in exports to the top 10 Asian markets has accounted for 85% of the year-over-year increase in exports through August. The increase in exports to China alone has accounted for 76% of the overall increase and was more than enough to offset the decrease in exports to Hong Kong and Japan. Exports to South Korea, Taiwan, and the Philippines have also shown significant increases.”

ERS increased the third-quarter U.S. beef export forecast 10 million lbs. to 925 million based on August trade data showing stronger-than-expected shipments to China. The fourth-quarter projection was unchanged. Based on expected global demand for next year, the forecast for first-quarter 2023 was raised 50 million lbs. to 740 million and the second-quarter forecast was raised 15 million lbs. to 775 million. The annual forecast was raised to 3.070 billion lbs.

Stronger cash fed cattle prices last week, the prospect for further gains this week and recently higher wholesale beef prices helped Cattle futures extend gains Tuesday.

Feeder Cattle futures closed an average of $1.73 higher, except for 7¢ higher in spot Oct.

Live Cattle futures closed an average of 50¢ higher (15¢ to 60¢ higher), except for unchanged in the back contract.

Negotiated cash fed cattle trade was at a standstill in the Southern Plains and Nebraska through Tuesday afternoon, according to the Agricultural Marketing Service. In the Western Corn Belt, trade was limited on light demand.

Last week, live prices were $145/cwt. in the Southern Plains and $148 in Nebraska and the Western Corn Belt. Dressed prices were $232 in Nebraska and $230-$232 in the western Corn Belt.

Choice Boxed beef cutout value was $2.64 higher Tuesday afternoon at $250.78/cwt. Select was $1.67 higher at $221.28/cwt.

Corn futures closed 2¢ to 3¢ lower. Soybean futures closed mostly 9¢ to 13¢ lower through Jly ’23 and then mostly 4¢ lower.

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Major U.S. financial indices extended gains Tuesday with positive quarterly corporate earnings reports, led by tech stocks.

The Dow Jones Industrial Average closed 337 points higher. The S&P 500 closed 42 points higher. The NASDAQ was up 98 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.47 to $2.64 lower through the front six contracts.

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Despite firm feedlot demand expected for the remainder of this year, between current price data and higher projected feed prices than in last month’s forecast, USDA’s Economic Research Service lowered the fourth-quarter price projection for feeder steers $4 to $173/cwt. with an annual average price of $164.93. That’s basis 750-800 lbs. steers selling at Oklahoma City.

“Based on a weaker outlook than last month for winter grazing on small grains, expected feeder calf placements were raised for the remainder of 2022, tempering expectations for supplies of stocker cattle entering feedlots in early 2023,” ERS analysts say, in the latest Livestock, Dairy and Poultry Outlook. “The price projection in first-quarter 2023 is raised $3 to $175. However, feed prices are forecast to be slightly higher for the 2022-23 crop year and expected feeder calf price increases in the second half of the year were moderated.”

ERS projects feeder steer prices next year at $190 in the second quarter, $214 in the third quarter with an annual average price of $200.75.

Cattle futures caught some wind Monday as traders seemed to focus more on the fundamentals, including recently stronger cash fed cattle prices and the likelihood that wholesale beef prices will begin their seasonal advance.

Feeder Cattle futures closed an average of $2.00 higher (95¢ higher in spot to $2.60 higher).

Live Cattle futures closed an average of 78¢ higher (55¢ to $1.42 higher).

Negotiated cash fed cattle trade was at a standstill through Monday afternoon, according to the Agricultural Marketing Service.

Last week, live prices were $145/cwt. in the Southern Plains and $148 in Nebraska and the Western Corn Belt. Dressed prices were $232 in Nebraska and $230-$232 in the western Corn Belt.

The five-area direct weighted average fed steer price last week was $146.99/cwt., which was 76¢ more than the previous week. The average fed steer price in the beef was $1.32 higher at $231.60.

Choice Boxed beef cutout value was $1.16 higher Monday afternoon at $248.14/cwt. Select was $2.67 higher at $219.61/cwt.

Cattle futures were also helped along by Corn futures closing mostly 4¢ to 6¢ lower. Soybean futures closed mostly 3¢ to 7¢ lower.

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Major U.S. financial indices rebounded on Monday with positive corporate earnings reports from key banks.

The Dow Jones Industrial Average closed 550 points higher. The S&P 500 closed 94 points higher. The NASDAQ was up 354 points.

West Texas Intermediate Crude Oil futures (CME) closed narrowly mixed through the front six contracts (15¢ lower to 9¢ higher).

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Drought continues to intensify across the U.S., according to the latest U.S. Drought Monitor (Oct. 13) with 82% of the nation classified from abnormally dry to exceptional drought.

“This level of arid conditions is the highest on record since the data series began in 2000 and higher than the drought of 2012,” according to analysts with the Agricultural Marketing Service (AMS). “Preliminary year-to-date cattle slaughter numbers for the first three quarters of the year were available this week and are very startling … In 2021, during this same time frame, beef cow slaughter was 9.1% higher than 2020. In 2022, it is 13.1% higher than last year and is now largest on record.”

AMS analysts add that year-to-date heifer slaughter is the largest since 2004 and 750,000 head more than the previous five-year average, as the widespread drought continues pushing replacement heifers into feed yards.

“Not surprisingly, we are tight on hay this year,” says James Mitchell, Extension livestock economist at the University of Arkansas, in the latest Cattle Market Notes Weekly. “The October Crop Production report forecasts hay production (excluding alfalfa) at 63.24 million tons or 11% lower year over year. In the August Crop Production report, USDA expected a 5% decline in hay production. This month’s report reflects a significant departure from earlier estimates.”

Volatile and bearish outside markets weighed on most commodities Friday as shorter supplies battle with demand concerns stemming from steamy inflation, higher interest rates and slowing economic growth.

Feeder Cattle futures closed an average of 79¢ lower (25¢ lower at the back to $1.32 lower toward the front).

Live Cattle futures closed an average of 62¢ lower, except for 50¢ higher in spot Oct.

Corn futures closed mostly 5¢ to 8¢ lower.

Soybean futures closed mostly 8¢ to 12¢ lower.

Negotiated cash fed cattle trade ranged from limited on light demand to a standstill through Friday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.

For the week, live prices were $1 higher in the Southern Plains at $145/cwt., steady to $2 higher in Nebraska at $148 and unevenly steady in the western Corn Belt at $148. Dressed prices were $2 higher at $232.

Choice Boxed beef cutout value was 45¢ higher Friday afternoon at $246.98/cwt. Select was $1.08 higher at $216.94/cwt.

Total estimated cattle slaughter last week of 660,000 head was 4,000 head fewer than the previous week but 21,000 head more than the same week last year. Total estimated year-to-date cattle slaughter of 26.7 million head was 417,000 head more (+1.6%) than the same time last year. Total estimated year-to-date beef production of 22.0 billion lbs. was 306.9 million lbs. more (+1.4%).

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Major U.S. financial indices on Friday gave back much of what was gained in the previous session as the focus returned to current and expected inflation.

The Dow Jones Industrial Average closed 403 points lower. The S&P 500 closed 86 points lower. The NASDAQ was down 327 points.

West Texas Intermediate Crude Oil futures (CME) closed $2.68 to $3.50 lower though the front six contracts.

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Kroger and Albertsons Companies — two of the nation’s top-10 grocery retailers — announced a definitive merger agreement last week. Depending on which list of top grocers in the U.S. by sales you look at, the merger would place the new entity ahead of Costco and in a head-to-head battle with Amazon, while still trailing Walmart by a long way.

Together, Albertsons Cos. and Kroger currently employ more than 710,000 associates and operate a total of 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers, according to joint new release.

“We are bringing together two purpose-driven organizations to deliver superior value to customers, associates, communities and shareholders,” says Rodney McMullen, Kroger Chairman and Chief Executive Officer, who will continue serving as Chairman and CEO of the combined company. “Albertsons Cos. brings a complementary footprint and operates in several parts of the country with very few or no Kroger stores. This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors…”

“We have been on a transformational journey to evolve Albertsons Cos. into a modern and efficient omnichannel food and drug retailer focused on building deep and lasting relationships with our customers and communities. I am proud of what our 290,000 associates have accomplished, delivering top-tier performance while furthering our purpose to bring people together around the joys of food and to inspire well-being. Today’s announcement is a testament to their success,” says Vivek Sankaran, CEO of Albertsons Cos.

In connection with obtaining the requisite regulatory clearance necessary to consummate the transaction, Kroger and Albertsons Cos. expect to make store divestitures.

Negotiated cash fed cattle trade ranged from limited on light demand in the Southern Plains to slow on light to moderate demand in the North through Thursday afternoon, according to the Agricultural Marketing Service.

So far this week, live prices are $1 higher in the Southern Plains at $145/cwt., steady to $2 higher in Nebraska at $147-$148 and unevenly steady in the western Corn Belt at $148. Dressed prices are $2 higher at $232.

Choice Boxed beef cutout value was 13¢ lower Thursday afternoon at $246.53/cwt. Select was $1.60 higher at $215.86/cwt.

Cattle futures softened Thursday amid volatile outside markets and despite higher cash trade.

Feeder Cattle futures closed an average of 65¢ lower, except for 5¢ higher in Aug.

Live Cattle futures closed an average of 23¢ lower, except for 27¢ higher in spot Oct.

Corn futures closed mostly 3¢ to 4¢ higher.

Soybean futures closed mostly 4¢ to 6¢ higher, except for fractionally lower to 2¢ higher in the front four contracts.

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Major U.S. financial indices sank early Thursday and then boomeranged back in dramatic fashion. Pressure stemmed from higher inflation than expected in the monthly Consumer Price Index (CPI). Apparently, the same information provided support later with speculation that it was the last gasp for price hikes. Energy also provide support.

The CPI for all urban consumers rose 0.4% month to month in September, according to the U.S. Bureau of Economic Analysis. CPI was up 8.2% over the last 12 months.

The Dow Jones Industrial Average closed 827 points higher. The S&P 500 closed 92 points higher. The NASDAQ was up 232 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.81 to $1.91 higher  though the front six contracts.

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Here’s something from the For What It’s Worth Department:

Land O’Lakes, in partnership with Wakefield Research, recently polled a nationally representative sample of U.S. consumers seeking to find out what they know about where their food comes from.

Among the findings:

On average, Americans believe that less than half of U.S. farms are family owned and operated, although the fact is that 98% are. Similarly, just 43% of respondents believe the food they buy comes from these family-owned operation, when in fact 88% does.

Despite some prevailing misconceptions, most Americans express interest in the source of their food with 87% of respondents at least somewhat interested in knowing where their groceries were grown or produced. Millennials were most likely to be extremely or very interested in knowing where their food comes from.

Finally, 94% of respondents say it’s at least somewhat important that their groceries be grown or sourced sustainably — yet when it comes to sustainable farming, 26% are unaware of the potential for sustainability in farming to increase farmers’ profits.

Weekly negotiated cash fed cattle trade remained undeveloped through Wednesday afternoon, according to the Agricultural Marketing Service.

Last week, live prices were $144/cwt. in the Southern Plains, $145-$148 in Nebraska and $145-$149 in the western Corn Belt. Dressed prices were $230.

Cattle futures edged higher, though, with the mainly friendly World Agricultural Supply and Demand Estimates (see below).

Feeder Cattle futures closed an average of 29¢ higher, except for unchanged and 12¢ lower in two away contracts.

Live Cattle futures closed an average of 31¢ higher, except for 12¢ lower in near Dec.

Corn futures closed mostly fractionally mixed through May ‘24 then mostly 1¢ to 3¢ higher.

Soybean futures closed 12¢ to 19¢ higher through Jly ‘23, and then mostly fractionally lower to 2¢ lower.

Choice Boxed beef cutout value was 9¢ lower Wednesday afternoon at $246.66/cwt. Select was $1.41 higher at $214.26/cwt.

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Major U.S. financial indices closed little changed again Wednesday after another whipsaw session.

The Dow Jones Industrial Average closed 28 points lower. The S&P 500 closed 11 points lower. The NASDAQ was down 9 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.54 to $2.08 lower through the front six contracts.

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USDA raised the expected annual five-area direct fed steer price for this year to $143.15/cwt., in the latest World Agricultural Supply and Demand Estimates (WASDE). That was 35¢ more than the previous month’s estimate, based on current strength in packer demand

Projected fed steer prices are $148 in the fourth quarter. Next year’s annual price projection is $154, with prices at $151 in the first quarter and $152 in the second quarter.

Beef production next year is projected to be 1.77 billion lbs. less than this year (-6.3%) at 26.43 billion lbs.

Compared to the previous month’s estimates:

Corn

USDA reduced expected 2022-23 corn production 49 million bu. to 13.895 billion bu. with reduced yield of 171.9 bu./acre. Corn ending stocks for 2022-23 were cut 47 million bu.

The season-average price received by producers was raised 5¢ to $6.80/bu.

Soybeans

Soybean production was forecast at 4.3 billion bu., down 65 million bu. on lower yields. Soybean yield was projected 0.7 bu. less at 49.8 bu./acre.

The U.S. season-average soybean price for 2022-23 was forecast at $14.00/bu., down 35¢. Soybean meal and oil prices were unchanged at $390.00/short ton and 69¢/lb., respectively.

Wheat

Production for 2022-23 was reduced 133 million bu. to 1,650 million on lower harvested area and yield. Projected ending stocks were lowered 34 million bu. to 576 million, which would be the lowest since 2007-08.

The season-average farm price was raised 20¢/bu. to $9.20 on reported NASS prices to date and expectations for futures and cash prices for the remainder of 2022-23.

Feeder Cattle futures bounced an average of $2.34 higher Tuesday, regaining some of the recent losses. Support included Corn futures closing 3¢ to 5¢ lower through Sep ’23 and then mostly 1¢ lower.

Feeder Cattle also received support from Live Cattle futures closing an average of 91¢ higher (22¢ higher at the back to $1.57 higher toward the front), likely due in part to notions that cash fed cattle prices can build on last week’s advance.

Negotiated cash fed cattle trade ranged from a standstill to limited on light demand through Tuesday afternoon, according to the Agricultural Marketing Service. There were a few early live sales in the western Corn Belt at $146/cwt., but too few to trend.

Last week, live prices were $144/cwt. in the Southern Plains, $145-$148 in Nebraska and $145-$149 in the western Corn Belt. Dressed prices were $230.

Choice Boxed beef cutout value was $2.12 higher Tuesday afternoon at $246.75/cwt. Select was 97¢ lower at $212.85/cwt.

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Major U.S. financial indices closed little changed Tuesday with investors apparently waiting for more direction from weekly economic reports.

The Dow Jones Industrial Average closed 36 points higher. The S&P 500 closed 23 points lower. The NASDAQ was down 115 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.75 to $1.84 lower though the front six contracts.

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Drought continues to expand and deepen, according to the latest U.S. Drought Monitor for the week of Oct. 4.

77.4% of the nation was classified from abnormally dry (D0) to exceptional drought (D4), compared to 62.4% at the same time last year. 52.6% was ranged from moderate (D1) to exceptional drought compared to 47.5% a year earlier. However, 32.4% was classified as severe (D2) to exceptional drought compared to 36.5% for the same week in 2021.

Approximately 66% of the U.S. cattle inventory was in areas experiencing drought, according to U.S. Crop and Livestock in Drought from NOAA and the National Integrated Drought Information System. At the same time last year, 35% of the nation’s cattle were in areas experiencing drought.

Derrell Peel, Extension livestock marketing specialist at Oklahoma State University provides some state perspective in his weekly market comments; virtually all of Oklahoma was in some stage of drought.

“There is little prospect for winter wheat grazing this fall. Hay supplies are very tight and a wide range of hay types and qualities are being offered. Failed summer crops are being baled for hay including grain sorghum and soybeans,” Peel says. “The water situation may soon be the most critical, even more than forage, for many producers. Water quantity and quality is low and decreasing rapidly. Oklahoma relies heavily on surface water ponds, which are filled by spring and summer thunderstorms. Ponds rarely get replenished in the winter, even in a normal year.” 

Surging Corn futures prices took Feeder Cattle futures down a peg Monday.

Feeder Cattle futures closed an average of $2.10 lower (80¢ lower toward the back to $2.75 lower toward the front).

Grain futures spiked higher with heightened concerns about Russia’s ongoing war on Ukraine.

Corn futures closed 10¢ to 15¢ higher through Sep ’23 then mostly 8¢ to 9¢ higher.

Soybean futures closed 5¢ to 7¢ higher through Sep ’23 and then mostly 2¢ to 3¢ higher.

Live Cattle futures were unable to fade the strong pressure, closing an average of 75¢ lower (52¢ to $1.05 lower).

Negotiated cash fed cattle trade ranged from a standstill to mostly inactive on light demand in all major cattle feeding regions through Monday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.

Last week, live prices were $144/cwt. in the Southern Plains, $145-$148 in Nebraska and $145-$149 in the western Corn Belt. Dressed prices were $230.

Choice Boxed beef cutout value was $1.44 lower Monday afternoon at $244.63/cwt. Select was $2.31 lower at $213.82/cwt.

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Major U.S. financial indices continued to soften Monday with hangover pressure from the previous week’s bullish employment summary prompted further concern about the aggressiveness of Fed interest rate increases.

The Dow Jones Industrial Average closed 93 points lower. The S&P 500 closed 27 points lower. The NASDAQ was down 110 points.

West Texas Intermediate Crude Oil futures (CME) closed $1.42 to $1.51 lower  though the front six contracts.

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Cattle grading and increased cattle slaughter imply Choice beef production is 4% higher year over year, which is one reason for lower Choice beef prices in recent weeks, according to David Anderson, livestock economist with Texas A&M AgriLife Extension Service.

“The Choice beef cutout has been sliding lower for a number of weeks. Last week’s average Choice cutout was $247/cwt., which is an $18/cwt. decline over the last eight weeks. It is also the lowest since the first week of April 2021,” Anderson says, in the latest issue of In the Cattle Markets from the Livestock Marketing Information Center. “Increasing supplies of Choice beef may be one reason for the decline, but it can also be an implication of some shifting demand.”

On the other hand, even with increased cattle slaughter, Prime beef production declined over the last eight weeks, leading to a $16/cwt. increase in Prime cutout value, according to Anderson.

“While consumers may be switching around between cuts of beef and other meats based on relative prices and budget constraints, available supplies certainly provide ample reason for changing cutout values,” Anderson says.

Negotiated cash fed cattle trade was limited on light demand in all major cattle feeding regions through Friday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.

For the week, live prices were $1 higher in the Southern Plains at $143/cwt. and $1-$3 higher in Nebraska and the western Corn belt at $146-$148. Dressed prices were $2 higher at $230.

Choice Boxed beef cutout value $1.29 lower Friday afternoon at $246.07/cwt. Select was 86¢ lower at $216.13.

Cattle futures limped to a narrowly mixed close on Friday.

Feeder Cattle futures closed mixed from an average of 38¢ lower through May ’23, then up 13¢ to 38¢.

Live Cattle futures closed mixed, down 15¢ to up 28¢.

The strong U.S. dollar capped Grain and Soybean futures Friday.

Corn futures closed mixed, 4¢ to 8¢ higher through Jul ’24 then down 1¢.

Soybean futures closed 3¢ to 9¢ higher through Sep ’24 and then 3¢ lower.

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Major U.S. financial indices sank Friday with investors apparently viewing the strong as another reason for the Fed to keep aggressively shoving interest rates higher.

Total non-farm payroll employment increased by 263,000 in September, and the unemployment rate edged down to 3.5%, according to the U.S. Bureau of Labor Statistics.

In September, average hourly earnings for all employees on private non-farm payrolls rose by 10¢ to $32.46. Over the past 12 months, average hourly earnings have

increased by 5.0%.

The Dow Jones Industrial Average closed 630 points lower. The S&P 500 closed 105 points lower. The NASDAQ was down 421 points.

West Texas Intermediate Crude Oil futures (CME) closed $2.50 to $4.19 higher higher though the front six contracts.

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“The lack of available grazing and a low hay supply is likely to bring cattle to market a few weeks early as many producers are facing conditions that may force them to begin feeding hay earlier than is typical,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “The price of freshly weaned calves has been declining the past several weeks and will likely continue to decline through the month of October. The driver of lower prices is not simply the seasonal tendency due to the seasonal increase in supply. Higher feed prices and increased concern of the general economy have many folks concerned about the consumers ability to purchase beef, which has resulted in a softening of price expectations for calves and feeder cattle moving through the spring months.”

Although declining cattle supplies ahead will support prices, Griffith explains continuing high feed costs and lower cash fed cattle prices than previously suggested by Cattle futures pose headwinds.

“If feed costs continue to maintain current price levels and finished cattle prices do not increase considerably then cattle feeders will be forced to continue leaning on lower feeder cattle prices,” Griffith says. “There should be some positive price movement closer to the end of the year, but prices are unlikely to make a large move through the month of October and early November.”

Negotiated cash fed cattle trade ranged from limited on light demand in the western Corn Belt to light to moderate on moderate demand in the Southern Plains through Thursday afternoon, according to the Agricultural Marketing Service.

So far this week, live prices are $1 higher in the Southern Plains at $143/cwt. and $1-$2 higher in Nebraska at $146-$147. Dressed prices are $2 higher at $230. Live prices in the western Corn Belt last week were $145.

Despite stronger cash prices, Cattle futures faded a bit.

Feeder Cattle futures closed an average of 37¢ lower (17¢ to 82¢ lower) except for an average of 25¢ higher in the back two contracts.

Live Cattle futures closed an average of 10¢ lower except for unchanged in one contract and 65¢ higher in spot Oct.

Choice Boxed beef cutout value was 30¢ higher Thursday afternoon at $247.36/cwt. Select was $2.23 lower at $216.99/cwt.

Grain futures weakened Thursday, pressured by slowing exports impeded by the strength of the U.S. Dollar.

Corn futures closed 6¢ to 8¢ lower through Jly ‘23 and then mostly 1¢ lower to 3¢ higher.

Soybean futures closed 7¢ to 11¢ lower through Jly ‘23 and then mostly 1¢ to 2¢ lower.

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Major U.S. financial indices softened Thursday with jitters ahead of Friday’s national employment summary. 

The Dow Jones Industrial Average closed 346 points lower. The S&P 500 closed 38 points lower. The NASDAQ was down 75 points.

West Texas Intermediate Crude Oil futures (CME) closed 69¢ to $1.04 higher though the first six contracts.

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U.S. beef export value topped $1 billion in August for the seventh time this year, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

August beef exports totaled 133,832 mt, up 1% year-over-year and the second largest volume on record – trailing only May 2022. Export value was just under $1.04 billion, slightly below the then-record total achieved in August 2021, which was the first time monthly exports topped the $1 billion mark.

“We speak often about the importance of developing a wide range of markets for U.S. red meat, and the August export results are a great illustration of that,” says USMEF President and CEO Dan Halstrom. “Exports face significant headwinds in some key destinations, with weakened currencies topping the list. But the emphasis on broad-based growth really pays dividends in these situations, allowing the overall export picture to remain very positive. I also cannot say enough about the loyalty of our international customers, many of whom have diminished purchasing power but continue to show a strong preference for U.S. red meat.”

For the first eight months of 2022, beef exports increased 5% from a year ago to 1.004 million mt, valued at $8.23 billion – a remarkable 24% above last year’s record pace. August beef export value equated to $437.98 per head of fed slaughter, down 7% from a year ago, but the January-August average was up 23% to $471.18.