The United States Department of Agriculture (USDA) forecasts higher U.S. meat production for 2010 as well as higher cattle, hog and poultry prices.
According to its monthly “World Agricultural Supply and Demand Estimates” cattle and hog prices were strong in the first quarter, reported USDA. Forecasts were raised sharply into the summer quarter as cattle and hog supplies are expected to be tight. Broiler prices were forecast higher as red meat supplies remain relatively tight and demand improves.
USDA’s forecast for 2010 total U.S. meat production was raised as higher beef and poultry production more than offset lower pork output. Higher fed cattle marketings in the first quarter supported a higher forecast of beef production despite lower carcass weights in the first part of the year. Cow slaughter was increased for the first half of the year. Meat export forecasts were reduced from last month, largely reflecting lower pork exports to Asian markets.
Source: USDA – United States Department of Agriculture