On Friday, live cattle prices increased when its growth broke its US record for volume and values set during 2021.
Live cattle contracts for February delivery went up by 0.24% to $161.20 per pound on February 10’s Asian afternoon session.
In 2022, US exports hit 1.50 million tons which marked a 2.00% rise from 2021. It is considered the highest year previously for the commodity’s supply volumes.
The increase revolved within 2022’s earlier months, with a 7.00%-low on December’s volumes, worse than the month’s 2021 size. The decrease reflected the US Meat Exporters Federation’s (USMEF) struggles in the Asian markets.
Moreover, the COVID-19 outbreaks quickly improved live cattle beef transport in America. As a result, there was a 4.00% decline in 2021 shipment volumes. Still, Japan stood as the largest bulk market for US live cattle beef in 2022, having 308,735.00 metric tons.
For China, it took 278,294.00 metric tons, which resulted in a 16.00% boost. Shipments remain impressive, despite December deliveries falling by 31.00% to 14,863.00 metric tons due to the pandemic, according to analysts.
However, the United States Department of Agriculture (USDA) expects a plummet in the supply of 5.00% in 2023. Maintaining the record volumes of the previous year will take a lot of work due to the pressures put on US exporters.
Aussie Live Cattle Expects to Resume Exports
On Sunday, analysts reported that there could be progress, especially for beef, an Australian key export.
In 2020, six Australian suppliers were suspended from China due to quality issues and other problems discovered upon custom inspection. As trade continued, unpleasant relations by the previous Aussie government’s policies against China pushed companies to seek other trustworthy supplies.
However, Australia has been one of China’s major live cattle beef suppliers despite a slump. According to analysts, other countries’ exports caused intense competition as the demand for the Australian live cattle weakened.
Additionally, the country is anticipating a continuation of beef exports to the Asian nation. Export volume is large since its production surpasses demand, targeting China since it is a massive market.
