Beef export outlook for 2017 looks good

Beef export outlook for 2017 looks good

What’s the Outlook for Beef Exports After Early Success in 2017? More cattle in the U.S. this year so sales are needed to keep prices up.Through the first month the best detail to date shows things are looking good.

We draw this report from the major cattle feeding states as Radio Oklahoma Farm Broadcaster, Ron Hays, spoke with the director of the Marketing Information Center in Denver, Jim Robb.  He told Hays that while markets are unexpectedly strong right now, some pullback in the coming months wouldn’t be a surprise.

Meat markets have had a good year thus far, in terms of beef exports, which were up almost 20 percent in January compared to the same time last year. The big question everyone is asking though is, ‘can we hope to keep up this momentum and a strong 2017 going? Executive Director of the Livestock Marketing Information Center in Denver, Jim Robb, told Radio Oklahoma Ag Network Farm Director Ron Hays that while markets are unexpectedly strong right now, some pullback in the coming months wouldn’t be a surprise.

“The seasonal pattern is very strong in beef exports, much like our seasonal pattern in beef production,” Robb said, but points out that we are coming up on the typically peak months for beef exports – July, June and August. “So, we are in the time of year where we’re really going to have to watch whether these year-over-year increases can persist.”

Robb says forecasts are projecting solid gains regardless what happens this year, but believes it unlikely that those gains will sustain this 20 percent average as we come off this peak period. Still, while there may be great potential for 2017, there are nevertheless a couple wildcards that could create kinks like political uncertainty and even the impacts of avian influenza among other things.

“We’re getting closer to that time frame of the year,” he said. “The box beef market is absolutely the key.”

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