In its June Livestock, Poultry and Dairy advisory note, the agency says higher cattle prices have encouraged increased cattle slaughter in the second quarter. Data also  indicates continued larger placements of cattle in feedlots than expected in May. Cattle prices in 2003 are forecast higher than in May as strong beef demand and short term supply concerns have resulted in stronger cattle prices during the second quarter, the report says. Likewise, hog prices in this quarter have been raised.

Pork production forecasts are unchanged from May and the Quarterly Hogs and Pigs report, to be released June 27, will provide insight into producer plans for the upcoming year. Meat production forecasts for 2004 are unchanged.

Beef import expectations for the whole of 2003 have also been raised in the light of higher-than-expected first-quarter imports from New Zealand. The  resumption of imports from Uruguay in the second half is also expected to more than offset estimated declines in imports from Canada in the second quarter, due to the BSE case in May.   On May 29, USDA published conditions by which Uruguay may resume shipping fresh, chilled, and frozen beef to the United States. Imports were banned following an outbreak of foot-and-mouth disease in early 2001 and it is expected these will resume during the second half of the year.

 

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