Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 10/11/10

USDA lowered its forecast for U.S. pork production in both 2010 and 2011 but raised its beef production forecasts for both years.

USDA forecast commercial pork production in 2010 at 22.14 billion pounds, down from 22.20 billion pounds forecast a month ago in its World Supply and Demand Estimates report. It based the reduction on lower slaughter and slower growth in slaughter weights.

USDA reduced its forecast for 2011 pork output to 22.47 billion pounds from 22.64 billion pounds forecast in September, because relatively high feed prices are expected to keep the growth in sows farrowing modest and dampen hog weights.

USDA raised its beef production forecasts for both years. For 2010, the report raised its forecast to 25.83 billion pounds from 25.70 billion pounds a month ago, noting production has been higher than expected so far in the second half of the year.

For 2011, the beef production forecast was raised to 25.23 billion pounds from 25.11 billion pounds last month, as larger-than-expected third quarter 2010 placements are marketed in the first quarter of 2011.
Beef import forecasts were lowered for 2010 and 2011 as supplies in Oceania are expected to be relatively tight while foreign demand strengthens. Export forecasts for  U.S. beef were raised on continuing strong sales to a number of markets.

The cattle price forecasts for 2011 was unchanged at $95 to $102 per hundredweight.
Hog prices for 2011were forecast slightly higher at $54 to $59 per hundredweight compared to $53 to $57 per hundredweight forecast last month, due to tight supplies.

To view the report, click here.

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