Weekly Sales Down Because of Price or Korean Market Opening?
Weekly Sales Down Because of Price or Korean Market Opening?
U.S. beef export sales were down markedly last week, dropping by nearly half from the previous week’s total and by more than two-thirds from weekly sales earlier in June.
USMEF Manager of Research and Analysis Erin Daley notes that the change may be due to a combination of factors: increasing beef prices and the South Korean market opening. Net sales for June 27-July 3 totaled 4,700 metric tons (10.4 million pounds), down 4,000 metric tons (8.8 million pounds) from the previous week’s sales and down 10,000 metric tons (22 million pounds) from the week of June 13-19. Daley notes that higher than anticipated sales in the preceding weeks likely were made in anticipation of the opening of South Korea to U.S. beef as international importers secured additional beef supplies before Korean importers joined the competition. A similar trend occurred when the market was expected to open around May 15: export sales dropped to 4,100 metric tons (9 million pounds) in the week of May 2-8.
The choice cut-out value yesterday was $173.71 per cwt compared to last week’s average at $170.60 per cwt, and up $34 per cwt from last year’s average of $139.87 per cwt. Short ribs (123A) were at $201.22 per cwt last week while yesterday’s reported average was $213.62 per cwt, compared to $237 per cwt last year during the period when beef exports were flowing to Korea.
Weekly Highlights from USDA/FAS:
Net sales of 4,700 metric tons (10.4 million pounds) were primarily to:
- Mexico, 2,700 metric tons (6 million pounds)
- Canada, 900 metric tons (2 million pounds)
- Russia, 300 metric tons (661,386 pounds)
- South Korea, 300 metric tons (661,386 pounds)
- Vietnam, 200 metric tons (440,924 pounds)
Exports of 10,100 metric tons (22.3 million pounds) were mainly to:
- Mexico, 5,000 metric tons (11 million pounds)
- Japan, 1,800 metric tons (4 million pounds)
- Canada, 1,400 metric tons (3.1 million pounds)
- Vietnam, 600 metric tons (1.3 million pounds)
- Russia, 400 metric tons (881,848 pounds)
- Taiwan, 300 metric tons (661,386 pounds)
Weekly Sales Down Because of Price or Korean Market Opening?
U.S. beef export sales were down markedly last week, dropping by nearly half from the previous week’s total and by more than two-thirds from weekly sales earlier in June.
USMEF Manager of Research and Analysis Erin Daley notes that the change may be due to a combination of factors: increasing beef prices and the South Korean market opening. Net sales for June 27-July 3 totaled 4,700 metric tons (10.4 million pounds), down 4,000 metric tons (8.8 million pounds) from the previous week’s sales and down 10,000 metric tons (22 million pounds) from the week of June 13-19. Daley notes that higher than anticipated sales in the preceding weeks likely were made in anticipation of the opening of South Korea to U.S. beef as international importers secured additional beef supplies before Korean importers joined the competition. A similar trend occurred when the market was expected to open around May 15: export sales dropped to 4,100 metric tons (9 million pounds) in the week of May 2-8.
The choice cut-out value yesterday was $173.71 per cwt compared to last week’s average at $170.60 per cwt, and up $34 per cwt from last year’s average of $139.87 per cwt. Short ribs (123A) were at $201.22 per cwt last week while yesterday’s reported average was $213.62 per cwt, compared to $237 per cwt last year during the period when beef exports were flowing to Korea.
Weekly Highlights from USDA/FAS:
Net sales of 4,700 metric tons (10.4 million pounds) were primarily to:
- Mexico, 2,700 metric tons (6 million pounds)
- Canada, 900 metric tons (2 million pounds)
- Russia, 300 metric tons (661,386 pounds)
- South Korea, 300 metric tons (661,386 pounds)
- Vietnam, 200 metric tons (440,924 pounds)
Exports of 10,100 metric tons (22.3 million pounds) were mainly to:
- Mexico, 5,000 metric tons (11 million pounds)
- Japan, 1,800 metric tons (4 million pounds)
- Canada, 1,400 metric tons (3.1 million pounds)
- Vietnam, 600 metric tons (1.3 million pounds)
- Russia, 400 metric tons (881,848 pounds)
- Taiwan, 300 metric tons (661,386 pounds)