October 11, 2010

US meat output estimates up for 2010, down for 2011

The USDA report, through the latest World Agricultural Supply and Demand Estimates, or WASDE, raised the forecast of total US meat production for 2010 but lowered it for 2011.

Beef and broiler production forecasts for 2010 are raised as second half production is higher than previously expected, the USDA said, but the pork production forecast is reduced due to lower slaughter and slower growth in slaughter weights.

The 2011 beef production forecast is raised primarily in Q1 as larger-than-expected third quarter 2010 placements are marketed. Pork production for 2011 is lowered from last month as relatively high feed prices are expected to keep the growth in sows following modest and dampened hog weights. The weakness in poultry-related names is being attributed to the latest WASDE report.