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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-
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