News

USDA raises beef production guess

The USDA has increased its 2017 red meat production estimate, while lowering poultry slightly.

Beef production was up from the June projection, now at 26.495 billion pounds, because of a higher slaughter pace and heavier live weights. That cancelled out a slight decline for pork, down to 25.834 billion pounds, which the USDA links to a slower summer slaughter rate and expectations for lower weights in the second half of the year. Total red meat production is seen at 52.550 billion pounds. USDA lowered its steer price estimate to $121 to $126 per hundredweight and raised the barrow and gilt projection to $48 to $50 because of those expected production changes. The beef import and export guesses were up on the month, now at 2.789 billion pounds and 2.816 billion, respectively, while pork was left unchanged, with imports of 1.064 billion pounds and exports of 5.747 billion.

USDA raised its 2017 broiler production guess, to 41.483 billion pounds, while lowering the outlook for turkey to 6.062 billion. The broiler chicken production estimate was up slightly on the month because of the production pace during the first half of the year. The turkey production projection was down with the USDA expecting relatively slow demand in the second half of the year. The poultry total is now expected to be 48.092 billion pounds. USDA says demand should support broiler prices this year, with a current range of $.86 to $.94 per pound, while pressuring turkeys, with a new range of $.99 to $1.07. Broiler exports are seen at 6.976 billion pounds with imports of 132 million pounds, and turkey exports are estimated at 603 million pounds with imports of 37 million.

The USDA’s next set of supply and demand estimates is out August 10th.