CME: Total Pork Exports Higher Than a Year Ago

by 5m Editor
14 November 2008, at 12:04pm

US - CME's Daily Livestock Report for 13th November 2008.

Pork export numbers for September are in and while overall volumes remained quite robust, they also highlighted some troubling trends going forward. Please keep in mind that the data referenced below reflects shipped volume in metric ton. Therefore, you may note some slight discrepancies when comparing to the carcass weight equivalent numbers that will be published on Friday by ERS:

Total pork exports (which includes, fresh/frozen and prepared pork) were reported at 116,480 MT, 43.8% higher than a year ago but about 42,000 MT or 26.7% less than the all time record monthly volume back in May. As the chart to the right shows, the primary reason for the decline from last summer’s levels are the cutbacks in exports to China/Hong Kong. Back in April and May there was plenty of speculation that the sharp rise in exports to that destination was due to a shortage of pork following disease outbreaks as well as the upcoming Olympic games. After July, US pork shipments to China and Hong Kong have declined from close to 45,000 MT to 10,349 MT in September. Exports to Japan in September were pegged at 34,050 MT were 28.8% higher than a year go. Exports to Russian in September were reported at 13,549, more than double year ago levels but about 3,500 MT or 20% lower than the previous month. Exports to Mexico were 18,902 MT, some 74% above year ago levels but almost 3,500 MT or 15.5% lower than August levels. In all, US pork exports for the month were quite robust and served to highlight the fact that last summer’s export volumes simply cannot be sustained in the long run. Expectations are that pork exports in October will likely still be quite strong compared to 2007 but likely will show further softening, especially in shipments to China, Russia and Mexico.