USDA raises its estimate for total red meat and poultry production for 2016

USDA raised its estimate for total red meat and poultry production for 2016 slightly, as well as its price forecasts for main feed ingredients corn and soybeans in its latest monthly World Agricultural Supply and Demand Estimates report.  Beef production is raised on increased fed cattle slaughter and heavier carcass weights. Pork production for 2016 is raised based on slaughter data. Broiler and turkey production for 2016 is slightly lower based on the recent slaughter.For 2017, USDA’s red meat and poultry production forecast is raised largely on higher forecast pork production, although forecasts of beef and broilers are also raised.BeefHigher expected cattle placements in late 2016 and early 2017 underpin higher forecast beef production in 2017.USDA will release its semi-annual Cattle on Feed report on Jan. 31, which will provide estimates of heifers held for breeding along with indications of the availability of cattle for placement during 2017.USDA raised its 2016 beef export estimate, based on November exports and expectations of strong export demand in December while lowering its beef import estimate.For 2017, beef exports are raised as current demand strength is expected to carry into 2017. Imports are forecast higher on expectations of slightly larger supplies from Oceania in early 2017.The 2017 cattle price forecast is increased on continued strong demand into the first part of 2017. Steer prices (total all grades) are now forecast to average $106 to $113 per hundredweight, up from last month’s forecast range of $103 to $111.PorkPork production for 2017 is raised based on estimates from the December Quarterly Hogs and Pigs report. The 5 percent year-over-year increase in the September–November pig crop will be slaughtered largely in the second quarter of 2017.