Source: Rita Jane Gabbett, MEATINGPLACE, 1/12/15


USDA raised its forecast for U.S. corn prices in the 2014/15 marketing year by 15 cents per bushel to a range of $3.35 to $3.95 per bushel on a slightly reduced production forecast and a slight increase in prospective corn use for ethanol.

In its monthly World Agricultural Supply and Demand Estimates report, USDA also raised its price forecast for soybeans by 20 cents per bushel to a range of $9.45 to $10.95 per bushel, based on prices reported to date. The soybean meal price projection is unchanged at $340 to $380 per short ton.

USDA raised the forecast for total meat production for 2015 on increased beef and pork production. Poultry production forecasts are unchanged.

Beef
USDA expects larger beef production in 2015 due to higher carcass weights, but lowered its forecast of 2014 beef production on a slightly slower pace of slaughter.

The forecasts for 2014 and 2015 beef imports are raised, but the export forecast is reduced for 2014.

The cattle price forecasts for 2015 are reduced from last month. Steers are now expected to average $159 to $171 per hundredweight, down from a range of $160 to $172 forecast last month.

Pork
USDA’s Quarterly Hogs and Pigs report indicated farrowings increased 3 percent in September-November 2014 and that producers intend to expand farrowings by 4 percent during December-May 2015. The report also showed that pigs per litter was record high for the September-November period.

Continued growth in pigs per litter is expected during 2015, resulting in greater availability of hogs for slaughter. However, the increase in the number of slaughter hogs may be partly offset by lower weights as hogs are marketed more rapidly.

Pork exports for 2014 are reduced on the pace of shipments, but the forecast is unchanged for 2015. No change is made to imports.

The hog price forecast for 2015 is lowered on larger supplies. USDA forecast barrows and gilts at $60 to $65 per hundredweight, down from $63 to $68 forecast last month.

Poultry
The broiler production forecast was unchanged from last month. Broiler exports are reduced slightly for 2015. No change is made to the turkey export forecasts.

Broiler prices are lowered for 2015 as supplies of competing meats pressure prices. Turkey price forecasts remained unchanged.

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