Declining Dollar and Fewer Cattle Imports Benefiting Beef

AMARILLO, TX – The decline in the value of the dollar has made the U.S. a less desirable target for beef from other beef producing countries. According to the online Cattle Report, Australia is in the midst of rebuilding a herd devastated by drought and wild fires and much of South American beef is shipped to Asia leaving beef imports in decline. Factoring the domestic shutdown of packing plants due to Covid-19 last year, the value of the dollar is the driver for imports. Don’t forget about live cattle imports though. For the month of January they were down more than 9 percent from the same time in 2020. Since the Canadian cattle herd is at the lowest point in three decades, the exports from the neighbor to the north were down 15 percent. Then, with Mexico suffering through the same drought that the Southwest U.S. is dealing with, ranchers to the south shipped 15 percent more cattle in the last half of 2020, making fewer cattle available this Spring and Summer as January shipments slipped nearly 6 percent. Exports are up, imports for both beef and live cattle are down, domestic demand is healthy and getting healthier and all while dealing with a decline in the domestic herd.
(SOURCE: All Ag News)