Source:  Tom Johnston, MEATINGPLACE.COM, 1/12/10

USDA raised its forecasts for both hog and broiler prices in 2010 because strong demand late in 2009 is expected to continue, the agency said in its monthly World Animal Supply and Demand Estimates report.

The price for barrows and gilts (National Base, Live equivalent 51 percent to 52 percent lean) is now forecast in a range of $44 to $48 per hundredweight, compared with last month's projected range of $43 to $46 per hundredweight. The price for broilers (wholesale, 12-city average) is now forecast in a range of 76 cents to 81 cents per pound, 1 cent higher on the bottom end of the range projected last month. Cattle prices were unchanged.

Meanwhile, the agency bumped up 2009 export forecasts for beef (to 1.861 billion pounds from 1.846 pounds) and broilers (to 6.802 billion pounds from 6.727 billion pounds) but lowered pork exports (to 4.151 billion pounds from 4.176 pounds). For 2010, beef exports are raised from December, but pork and broilers are reduced.

"Recently announced quotas and sanitary requirements for imports by Russia are expected to constrain exports of pork and broilers to that country, and broiler exports may also be limited by trade uncertainties in several other countries," USDA said in the report.

To view the view the entire WASDE report, click here. 

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