Source: Rita Jane Gabbett, MEATINGPLACE, 12/9/11

 

In the face of tight cattle supplies, USDA raised its 2012 price forecast for cattle (5-area direct, all grades) to an average of $120 to $128 per hundredweight from last month’s forecast range of $117 to $126.

In its monthly World Agricultural Supply and Demand Estimates report, USDA forecast broiler prices (wholesale, 12-city average) to 80 cents to 86 cents per pound from last month’s forecast of 79 cents to 85 cents per pound, based on lower production.

The 2012 forecast of total red meat and poultry production is reduced from last month as lower forecast broiler production more than offsets a higher pork production forecast.

Beef and turkey production forecasts are unchanged. Broiler production is forecast lower, largely due to slower expected growth in average bird weights in the first part of the year. Pork production is forecast higher as slightly higher carcass weights are expected. For 2011, beef and broiler production forecasts are lowered, but the pork production forecast is raised.

The beef import forecast is raised for 2011 based on higher-than-expected third-quarter data, but is unchanged for 2012. Pork imports are lowered for 2011 and 2012. Beef, pork, and poultry exports are raised for 2011 and pork, broiler, and turkey exports are raised for 2012.

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