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USDA forecasts more poultry; higher soybean, beef, poultry prices
Story Date: 3/12/2012
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Source: Rita Jane Gabbett, MEATINGPLACE, 3/9/12
USDA raised its forecast for broiler production this year and boosted its beef, broiler, turkey, soybean and soybean meal price forecasts in its World Agricultural Supply Demand Estimates report.
Poultry
The broiler production forecast was raised to 36.3 billion pounds from 36.1 billion pounds a month ago based on January production data and stronger forecast prices. USDA now projects 2012 broiler prices at 85 cents to 90 cents per pound, up from 82 cents to 87 cents per pound forecast a month ago.
USDA also raised turkey production for 2012 to 5.91 billion pounds from 5.85 billion forecast a month ago. It boosted average turkey prices to a range of $1.03 to $1.09 per pound from last month’s forecast of $1 to $1.07 per pound.
Beef
For beef, production was lowered from last month. Steer and heifer slaughter is forecast lower, but is partly offset by higher expected cow slaughter. Early year carcass weights were raised due to mild weather in much of the country.
Cattle price forecasts for 2012 were raised from last month. Steers (all grades) are now forecast at $124 to $131 per hundredweight, up from $121 to $129 per hundredweight a month ago, reflecting tightening fed cattle supplies.
The hog price and pork production forecasts remain unchanged.
Soybeans, corn
USDA forecast average soybean prices at $11.40 to $12.60, up from a range of $11.10 to $12.30 a month ago. It raised soybean meal prices to a range of $310 to $340 per ton from $290 to $320 per ton a month ago. The agency reduced its forecasts of both the Brazilian and Argentine soybean crops.
Corn ending stocks were forecast at 801 million bushels, which was above the consensus analysts’ forecast of 784 million bushels, making the report bearish for corn prices, according to Deutsche Bank analyst Christina McGlone.
USDA is now predicting U.S. corn prices will average $5.90 to $6.50 in the marketing year that began last September, compared to a range of $5.80 to $6.60 a month ago.
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