Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 1/13/11

USDA reported more red meat and poultry production in 2010 than previously expected and forecast more beef and broiler production in 2011, but less pork.

Beef
In its monthly World Agricultural Supply and Demand Estimates report, USDA said the increase in beef production reflected large placements of cattle during the fourth quarter of 2010, which will be ready for slaughter during mid-2011.

The forecast for beef exports for both 2010 and 2011 was unchanged from last month but the forecast of beef imports was lowered as a weak U.S. dollar and tight supplies in several exporting countries limit shipments.

USDA raised its average cattle (steers, total all grades) price forecast for 2011 to a range of $99 to $106 per hundredweight from last month’s range of $96 to $104 to reflect continued strong demand for cattle and tightening supplies of fed cattle.

Broilers
Broiler production forecasts were raised to reflect relatively heavy bird weights.
USDA raised its broiler export forecast for 2010 but left the 2011 forecast unchanged from last month.
The broiler price forecast was lowered on larger supplies of broilers and competing meats. USDA forecast 2011 average broiler prices at 81 cents to 86 cents per pound compared to 81 cents to 88 cents per pound forecast last month.

Pork
USDA slightly reduced its pork production forecast for 2011. USDA’s Quarterly Hogs and Pigs report indicated that producers intend to farrow fewer sows in the first half of 2011 but continued strong growth in the number of pigs per litter implies relatively abundant supplies of hogs for slaughter will be available during 2011.

USDA said higher forecast hog weights will also partly offset the effects of lower farrowings on pork production, but recent increases in weights were not expected to be sustained during the year.
The pork export forecasts for 2010 and 2011 were reduced slightly from last month as higher pork prices were expected to more than offset weakness in the U.S. dollar.

Hog prices for 2011 were forecast higher as demand for hogs remains strong. USDA forecast average prices for barrows and gilts in a range of $54 to $58 per hundredweight, up from last month’s forecast range of $53 to $57 per hundredweight.

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