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Billings
Saturday, September 23, 2017
USDA AMS September 2017 Economic Landscape Report. For more details click here: http://www.ams.usda.gov/services/market-research/aad.

PRODUCTION

July beef production was 2.11 billion pounds, 4 percent above 2016 but 8 percent less than June, which had two fewer slaughter days. Cattle slaughter totaled 2.61 million head, up 6 percent from July 2016 but 9 percent lower than the month before. The average live weight was down 12 pounds from last year, at 1,333 pounds, and year-to-date beef production is up 5 percent from 2016. Veal production in July totaled 5.7 million pounds, up 1 percent from last July, but down 10 percent from June. Calf slaughter totaled 39,000 head, up 3 percent from July 2016 and down 3 percent from June. The average live weight was down 7 pounds from last year, at 250 pounds. Accumulated veal production for 2017 was down 1 percent from last year. Frozen beef supplies at the end of July rose 4 percent from June closing levels, but were down 8 percent from June 2016. Boneless beef in cold storage increased 3 percent compared to the prior month, but declined 8 percent year over year. The inventory of beef cuts grew 7 percent monthly and also fell 8 percent yearly. Frozen veal stocks in cold storage jumped 33 percent from the month before and 86 percent from last year.

PRICE

Live cattle prices (FOB, steers and heifers) fell through August, losing $8 to $109 per cwt, slightly below the 2016 price. The Choice beef cutout value continued its seasonal decline, taking off $15 to close at $192 per cwt, down 4 percent from 2016. The 90 percent lean boneless beef slowed $3 to end at $231 per cwt, 8 percent above last year. However, the 50 percent lean trim price dropped $36 to end the month at $54 per cwt, surprisingly still up 27 percent year-over-year. For the first time in 2017, both packer and non-packer-owned veal carcasses broke the $310 per cwt barrier, each ending up $7 at $317 and $314 per cwt respectively. These values were 2 percent lower year-over-year for both carcass types. The veal cutout average changed for the first time since February, falling $25 to $410 per cwt, 20 percent below last year’s value.

INTERNATIONAL TRADE

Compared to July 2016, beef and veal exports (including variety meats) rose 4 percent to 105 thousand MT. The export value was up 17 percent to $624 million. The export volume was 5 percent lower while value increased 4 percent from June. The first seven months of the year beef export volume rose 11 percent from last year, and was up 15 percent in value. Japan, South Korea and Canada were our largest export markets in July. Beef import volumes were up 11 percent from 2016 to 107 thousand MT, and were 10 percent higher in value at $551 million. Compared to June, beef imports saw 2 percent growth in volumes and value. However, year-to-date imports of beef and veal volumes were down 6 percent and value was down 7 percent from 2016. Australia, Canada and New Zealand were the largest importers of beef to the U.S.

MONTHLY BEEF PRODUCTION