Page 6 - Oct12020

The Midwest Cattleman · October 1, 2020 · P6
Beef trade shock waves continue

By Derrell S. Peel, Oklahoma State University Extension Livestock Marketing

The dramatic beef produc- market with July exports up percent compared to the first ing inter-
tion disruptions in the sec- 10.7 percent year over year seven months last year. Beef national
ond quarter continued to be and year to date exports up imports were up from each of beef trade.
reflected in the latest data 11.8 percent. Mexico has the four largest beef import Since the
for July. Beef exports, which dropped to number four with sources. Canada, the largest C O V I D -
dropped 31 percent year over exports down 51.7 percent in source of beef imports, was 19 im-
year in May and 33 percent in July compared to last year up 12.7 percent in July but is pacts began in mid-March,
June, increased sharply from and down 39.8 percent so far down 5.8 percent for the year the U.S. dollar has been sig-
June to July but remained 8 in 2020. Beef exports to Hong to date. Mexico was up 34.3 nificantly stronger compared
percent lower year over year. Kong were up 14.7 percent in percent in July compared to to the Argentinian, Brazilian
The weekly data suggests July but are down 5.0 percent last year and is up 25.5 per- and Mexican currencies and
that exports continued to re- for the year to date. July ex- cent so far this year. Mexico somewhat stronger against
cover in August, likely up year ports to Taiwan were up 8.5 now exceeds Australia as the the Canadian, Australian and
over year. percent year over year but are number two source of U.S. New Zealand dollars. A strong
July beef exports to Japan down 4.7 percent for the year beef imports. Australia was U.S. dollar is a headwind for
were down just 2.0 percent through July. Hong Kong and up 17.1 percent year over year beef exports and favors beef
year over year and remain 4.3 Taiwan each represent 6.7 in July but is down 2.7 percent imports. The U.S. dollar has
percent higher for the year percent shares of total year for the year to date. New Zea- weakened slightly against the
to date through July. Beef to date beef exports. Beef ex- land was up 94.2 percent in Japanese Yen, and the Hong
exports to South Korea were ports to China in July were up July and is 13.3 higher for the Kong dollar, which does help
down 3.9 percent year over 125.9 percent over last year year to date. So far in 2020, support beef exports to those
year in July and are down 6.8 and are up 81.5 percent year Canada and Mexico account two major markets.
percent for the year to date. over year for the year to date. for 44.3 percent of total beef Continuing COVID-19 im-
Japan and South Korea are China represents 1.6 percent imports and combined with pacts, global recession, polit-
the two largest beef export of total beef exports so far in Australia and New Zealand, ical tensions, and exchange
markets and represent 54.4 2020. the top four source represent rates will all be important in
percent of total beef exports Beef imports spiked high- 82.4 percent of total beef im- determining global beef trade
for the first seven months er in July, up 41.1 percent ports. in the coming weeks and
of 2020. Canada is now the year over year and pushing Currency exchange rates months.
number three beef export the year to date total up 8.5 are important factors affect-