Market Reports

Commercial beef production for April 2017 was fractionally below a year ago. However, with one less slaughter day in the month, meatpackers slaughtered 2 percent, or 54,000 head, more cattle than last year.

The most discussed trends in U.S. agriculture have likely been the declining number of U.S. farmers and ranchers. This trend – combined with ever-growing global demand – has set the wheels into motion for U.S. farming and ranching operations to become larger over time.

Negotiations with China regarding the details of an agreement to ship U.S. beef to China have been ongoing for the last few months, and were finalized June 12. It didn't take long for the Greater Omaha Packing Company to take advantage.

The USDA forecasts 2.3 percent growth in U.S. beef production in 2018, based on larger 2016 – and expected 2017 – calf crops projected to support increases in cattle placements in late 2017 and early 2018.

Step one of U.S. beef exports to China is completed. The first step of opening any international market is the political process of negotiating access and agreeing on the conditions and stipulations of that access. Step one establishes the game and the rules of the game.

U.S. meat production is growing more slowly than previously expected. Many analysts have trimmed their estimates, and the USDA, in the latest monthly estimates, reduced forecasts for 2017 beef, pork and poultry production from earlier levels.