USA: Cattle market overview for the 32nd week of 2022

Livestock futures on the Chicago Mercantile Exchange (CME) rose on Thursday to new highs as domestic demand for beef this summer remains stronger than expected, REUTERS reported, citing traders.

US producer prices fell unexpectedly in July on the back of falling energy prices, and core producer inflation appears to be on a downward trend, although jobless claims rise for the second straight week in a job market that remains tight.

“The only thing we have in the cattle market is that we have probably reached our seasonal peak on the production side of the market,” said Don Roose, president of Iowa-based US Commodities. “But as we approach the fourth quarter, we are still not seeing signs of a growth phase in the number of cattle, and demand remains strong.”

During the first six months of the year, beef exports are at a record pace of almost 1.8 billion pounds, up 7.4% or 123 million pounds from 2021. Year-to-June, beef exports to SOUTH KOREA and CHINA increased by 4% and 36%, respectively, to 400.3 and 230.7 million pounds. Exports to Japan and CANADA fell less than one percent to 408.5 and 136.1 million pounds, respectively, while shipments to Mexico fell 16.5% to 157.9 million pounds.

Beef imports in the first half of 2022 are at their fastest pace since 2015, up 18.1%, or 283 million pounds, to 1.8 billion pounds. Since the beginning of the year, shipments from Canada and Mexico have increased by 5.2% and 22.8%, respectively, to 463 and 391 million pounds. Imports from Australia rose 4.1% to 194m pounds, while shipments from New Zealand fell 12.1% to 244m pounds. Brazil was the number three supplier behind Canada and Mexico with shipments of 338 million pounds, more than double the same period in 2021.

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WEEKLY CUT CHOICE COST

CATTLE SALES

Sale of livestock, heads

Average weight

08/05/2022

08/12/2022

Growth per week,%

08/05/2022

08/12/2022

Growth,%

Bulls (live weight)

32 947

37 117

12.7%

1439

1458

1.3%

Heifers (live weight)

12 783

18 336

43.4%

1 294

1 319

1.9%

Bulls (slaughter. weight)

14 777

12 163

-17.7%

941

936

-0.5%

Heifers (slaughter weight)

3 199

2279

-28.8%

834

852

2.2%

WEEKLY WEIGHTED AVERAGE PRICE OF BULLS

BEEF PRODUCTION

Slaughter volume

32 week

Week 32, 2021

Growth per year, %

Live weight

647 000

636 000

1.7%

slaughter weight

1343

1355

-0.9%

Beef production (million pounds)

812

820

-1.0%

Beef production (thousand tons)

524.5

520.3

0.8%

CME: Live Cattle Futures

Week 31

Week 32

Growth per week,%

August

137.88

140.23

1.7%

October

143.88

144.50

0.4%

December

149.98

150.63

0.4%

Futures for fattening cattle

August

179.53

179.63

0.1%

September

183.43

183.38

0.0%

October

185.95

186.00

0.0%

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