USDA raises pork output forecast, lowers price

USDA raised its forecast for pork production and lowered its price forecasts based on larger-than-expected second quarter slaughter and heavier carcass weights.

In its monthly World Agricultural Supply Demand Estimates report, USDA lowered its average price forecasts for barrows and gilts (live equivalent 51 percent to 52 percent lean) to a range of US$42 to US$43 per hundredweight in 2009, compared to last month's forecast of US$43 to US$45. For 2010, USDA lowered its price forecast range to US$46 to US$50 from last month's range of US$48 to US$51.

USDA lowered its beef production forecast for 2009 due to lower expected feedlot placements and slightly lighter average carcass weights.

It raised its broiler production forecast, as second- and third-quarter output is expected to be slightly higher.