USDA raises 2002 meat production forecast
The USDA has raised its meat production forecast for 2002, as higher beef and poultry production is expected to more than offset lower pork production. Beef production is also raised for this month as dairy producers are said to be culling larger than normal numbers of less-efficient cows. Cattle prices are lower as supplies of beef are forecast higher, and hog prices are raised as fourth-quarter slaughter is lower on last month.
Producers have also indicated their intention to have fewer sows farrow in late 2002 and early 2003. Thus, 2003 pork production is reduced from last month. As producers are expected to continue marketing large numbers of heavyweight cattle, beef production forecasts in the first half of 2003 are raised. Cattle prices in 2003 are forecast lower than last month as beef supplies will remain relatively large. Hog prices are forecast higher as reduced farrowings are expected to lead to lower hog slaughter in 2003.
