In September, the total export volume of pork products in the United Stateswas 0.42billion lbs, increased 0.78 percent from the previous month, and 1.71 percent year-on-year. The positive in the latest data is that exports to a number of key markets in the Americas but also Asia remain quite robust. Mexico has become by far the largest buyer of US pork. Total exports to Mexico in Augustwere1.13percenthigher than a year ago. By comparison export to Japan, the second largest market for US pork, weredecrease3.38percent. US exports of fresh/frozen and cooked pork to China were31.25percentless than a year ago.
The USDA weekly pork export sales report released on Thursday showed that for week ending September 21 net pork sales were 8,082millionlbs, a big jump considering that weekly exports have been running at around 4,409millionlbsin recent week.US pork prices hold a significant advantage relative to EUpork prices, which should bolster shipments into Asian markets. The weekly export sales report were also confirmed by data from Mandatory Price Report, which tracks pork sold into overseas markets (NAFTA sales are not included).
Exports for October are projected at 484 million pounds, 7.1% higher than last year. November will be key for US pork exports. Last year a surge in export orders helped absorb much of the increase in pork production. Futures are currently trading as if that will happen again. Watching weekly export numbers remains critical.
