February 10, 2011

USDA raises 2011 beef forecast, lowers for pork

USDA's production estimates for 2011 are raised for beef and broilers, but lowered for pork as cattle placements last December were large and will result in higher-than-previously forecast slaughter in mid-2011.

The estimates of 2010 red meat and poultry output are adjusted from last month to reflect December production estimates, as shown in USDA's latest crop report.

In addition, cow slaughter in the first half is expected to reflect currently high cull-cow prices. Cattle weights are also forecast slightly higher in the first half. Broiler production forecasts are raised for the first quarter to reflect relatively heavy broiler weights.

Pork production is reduced slightly for the first quarter of 2011 as lower hog slaughter more than offsets continued high carcass weights.