Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 7/10/09
          

USDA raised its forecast for pork production and lowered its price forecasts based on larger-than-expected second quarter slaughter and heavier carcass weights.

In its monthly World Agricultural Supply Demand Estimates report, USDA lowered its average price forecasts for barrows and gilts (live equivalent 51 percent to 52 percent lean) to a range of $42 to $43 per hundredweight in 2009, compared to last month's forecast of $43 to $45. For 2010, USDA lowered its price forecast range to $46 to $50 from last month's range of $48 to $51.

The recent Quarterly Hogs and Pigs report indicated a slower-than-expected decline in farrowing intentions which, coupled with continued gains in pigs per litter, will result in larger supplies of slaughter hogs in 2010, the report noted. In addition, lower forecast feed prices compared with last month support heavier hog carcass weights.

USDA lowered its beef production forecast for 2009 due to lower expected feedlot placements and slightly lighter average carcass weights. It raised its broiler production forecast, as second- and third-quarter output is expected to be slightly higher.