Beef Buzz News
Peel Amazed US Beef Exports Remain Strong in Spite of Record Prices
Thu, 18 Dec 2014 12:21:32 CST
Ron Hays Beef Buzzes with Derrell Peel, OSU Extension Livestock Marketing Specialist
The cattle market is wrapping up an incredible year. In looking back at 2014, Oklahoma State University Extension Livestock Marketing Specialist Derrell Peel said one of the aspects of the very strong year for cattle prices in this country are international trade. He said export values are helping underpin the move higher on these overall cattle prices. Similar to domestic demand, the US continues to see remarkable strength for beef exports. For the month of October, year over year, Peel said beef exports were down about three point four percent, but for the year to date, exports were up half a percent, basically unchanged from a year ago. Peel said exports have been up and down over various months.
"The bottom line is, given the prices levels that we are seeing, I think its surprising that exports are holding as well as they are," Peel said.
Radio Oklahoma Network Farm Director Ron Hays featured Peel on the Beef Buzz feature. Click or tap on the LISTEN BAR below to listen to today's Beef Buzz.
In terms of exports Peel said it's a mixed bag. Canada is off the most as a major export designation, Japan is slightly lower than a year ago, Mexico is up for the year, while South Korea and Hong Kong are both up strongly for 2014. On a month to month basis, Peel said each one of the countries have had swings in exports being higher or lower than a year ago.
Overall export volume is close to last year's levels, but export value is much higher than a year ago because of the higher US beef prices. Peel said one the key markets that is really starting to have impact on globally on beef demand is mainland China. While technically the US does not have access to that market yet, Peel believes some US beef is getting into China through Hong Kong and Vietnam. In looking at Australia, he said clearly China is a major driver in the increased global demand for beef.
In looking at the beef supply situation, part of that comes from importing Mexican feeder cattle. Mexican cattle imports into the US increased in 2011 and 2012 due to the drought liquidation as well as the relatively strong cattle markets in the US. He said Mexico was liquidating because of the same drought problems those year. In 2013 import levels dropped sharply, as Peel expected. This year Mexican cattle imports are up about 13 percent, which is stronger than anticipated.
"But, I still think its a case of sort of, when do they run out of cattle?," Peel said. "...Obviously the record prices in the US is a strong attraction for cattle to come from wherever they can, but when you look at the composition of the imports from Mexico in percentage terms, its is more spayed heifers than it is feeder steers and I think again we are reaching the end of those supplies."
The US have gotten about 120 - thousand more cattle from Mexico in 2014 that is augmenting the US feeder cattle supply. Peel said he doesn't think Mexico will be able to hold those levels next year as he doesn't think the cattle are there to support those levels.
US feeder cattle supplies will be tight in 2015 because of the number heifers being held back in this country and with fewer feeder cattle coming in from Mexico that will also contribute to tighter feeder cattle supplies for 2015 in the United States.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network- but is also 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.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
South Dakota Rancher Todd Wilkinson Tells EPW, Cattlemen Part of the Solution to Climate Change Tue, 22 Oct 2019 07:53:15 CDT
Rabo Analyst Don Close Predicts Grow Yard Concept Will Become Essential to the Beef Pipeline System Mon, 21 Oct 2019 11:56:03 CDT
OSU's Janeen Salak-Johnson Tells Cattle Producers Being Open to Doing Things Differently Can Save an Industry Fri, 18 Oct 2019 15:02:09 CDT
OSU's Janeen Salak-Johnson Warns Beef Producers of the Coming Scrutiny from Animal Welfare Activists Thu, 17 Oct 2019 05:56:09 CDT
Letting the Markets Do What They Do - Economist Glynn Tonsor Explains All Wed, 16 Oct 2019 07:45:29 CDT
NCBAís Season Solario Explains How the Checkoff is Working to Head Consumers Off at the Pass, Digitally Speaking Tue, 15 Oct 2019 09:31:40 CDT
NCBAís Season Solario Unveils the Magic Behind the Success of the Beef. Itís Whatís for Dinner Brand Fri, 11 Oct 2019 06:26:18 CDT
Changes in the Dynamics of Global Beef Trade Evident in Latest Export Numbers Out from USMEF Thu, 10 Oct 2019 13:42:22 CDT
Markets Well Down the Road to Recovery as Heat from the Tyson Fire Cools Down Wed, 09 Oct 2019 05:54:36 CDT
With a Trade Deal in the Bag, NCBAís Kent Bacus Says Nothing Stands in the Way of US Beefís Domination in Japan Tue, 08 Oct 2019 20:05:48 CDT
The Numbers Donít Lie - K-State Economist Glynn Tonsor Says No Beef Demand Bump from COOL Mon, 07 Oct 2019 08:20:15 CDT
Better Times Ahead for Cow/Calf Producers Says LMIC Senior Economist Jim Robb Fri, 04 Oct 2019 07:00:38 CDT
Market Watcher Jim Robb Suggests Aggressive Female Slaughter Activity May Set Stage for Higher Fed Prices Thu, 03 Oct 2019 08:00:20 CDT
LMAís Chelsea Good Shares Her Thoughts on Today's Hot Button Issues in the Animal Ag Industry Wed, 02 Oct 2019 09:26:24 CDT
Livestock Marketing Associationís Chelsea Good Working with Industry Partners to Address Post-Fire Market Concerns Tue, 01 Oct 2019 06:28:51 CDT
okPORK's Roy Lee Lindsey Exposes the Hypocrisy of Mandatory Country of Origin Labeling Mon, 30 Sep 2019 18:14:34 CDT
NCBAís Colin Woodall Pushes Back on OCMís False, Inflammatory Claims Regarding Checkoff Funding Mon, 30 Sep 2019 11:50:44 CDT
King Ranch Institute's Dr. Clay Mathis Talks Technology on the Ranch, and How to Make Money Using It Fri, 27 Sep 2019 14:29:24 CDT
King Ranch Institute's Dr. Clay Mathis Talks Technology on the Ranch, and How to Make Money Using It Fri, 27 Sep 2019 10:36:39 CDT
Trump Strikes Deal with Japan - NCBA Lobbyist Colin Woodall Affirms It's Just What Cattlemen Wanted Thu, 26 Sep 2019 10:25:22 CDT
Grow Yard Concept Finding Its Footing in Beef Industry - Analyst Don Close Says Opportunity Abounds Tue, 24 Sep 2019 10:30:21 CDT
K-State's Glynn Tonsor Says Struggling Cattle Markets Propped Up By Robust Domestic Beef Demand Mon, 23 Sep 2019 11:53:00 CDT
Burger King Reports Increased Sales of Conventional Beef Burgers Alongside Climbing Impossible Burger Sales Fri, 20 Sep 2019 10:34:32 CDT
USMEF's Dan Halstrom on What Japan's Meat Trade Really Wants from the US Beef Cattle Industry Thu, 19 Sep 2019 10:11:34 CDT
Formal Agreement with Japan Announced by White House Could Help Grow Island's Taste for Tongue Wed, 18 Sep 2019 11:05:20 CDT
OSU's Janeen Salak-Johnson on Killing the Sacred Cows of the Beef Business, How Being Open to Doing Things Differently Can Save an Industry Tue, 17 Sep 2019 10:34:24 CDT
OSU's Janeen Salak-Johnson Warns Beef Producers of the Coming Scrutiny from Animal Welfare Activists Mon, 16 Sep 2019 11:07:53 CDT
Repeal of WOTUS Strikes Emotional Chord with OCA's Michael Kelsey, Reflecting on Action's Significance Fri, 13 Sep 2019 11:36:52 CDT
American Angus Assoc. CEO Mark McCully Reflects on the Angus Breed's Role the Beef Industry Today Thu, 12 Sep 2019 11:49:28 CDT
Fall Looking Like a Mixed Bag for Beef - Peel Advises Producers Pay Close Attention to Market Dynamics Wed, 11 Sep 2019 10:06:31 CDT
Fall Looking Like a Mixed Bag for Beef - Peel Advises Producers Pay Close Attention to Market Dynamics Wed, 11 Sep 2019 10:04:16 CDT
Cattle Markets Not Expected to Improve as Seasonal Demand Shifts into Lower Gear Heading into Fall Tue, 10 Sep 2019 10:22:26 CDT
State Officials in Colorado Help Local Farmers, Ranchers Launch New "Better With Beef" Initiative Mon, 09 Sep 2019 11:21:19 CDT
Beef Industry Soon to Launch New Campaign Leveraging Consumer Interest in the BQA Program Fri, 06 Sep 2019 10:06:04 CDT
NCBA's Alisa Harrison Highlights the Tremendous Value Digital Marketing Adds to the Beef Checkoff Thu, 05 Sep 2019 10:27:08 CDT