Source:   Rita Jane Gabbett, MEATINGPLACE, 6/10/11

USDA raised its 2011 U.S. meat production forecast, but lowered its 2012 forecast on expectations that higher feed prices will reduce beef, pork and poultry production.   

In its World Agriculture Supply and Demand Estimates report, USDA boosted 2011 beef production due to large cattle placements and larger cow slaughter, in part because of drought in the Southern Plains.

However, 2011 and 2012 forecasts for pork and poultry are reduced from last month as higher forecast grain prices are expected to trim hog weight gains and put additional pressure on broiler producers.

Higher feed prices are expected to also slow cattle feedlot placements in 2012 as producers keep cattle on forage longer.

Exports
Export forecasts for red meat and poultry are raised from last month. Beef exports for 2011 are forecast higher on strength in a number of markets and expected improvements in exports to Mexico.

Pork, broiler, and turkey exports were larger than expected in the first quarter and the forecasts for the remainder of 2011 are raised.

Beef and turkey exports are raised for 2012, but no changes are made to pork or broiler exports.

Prices
Cattle and broiler prices for 2011 are lowered from last month on weaker-than-expected demand but hog prices are unchanged. Broiler prices are lowered for 2012.
 

For more stories, go to www.meatingplace.com.