WASDE report reduces pork 2014 forecast
The forecast for total meat production in the US in 2014 is raised from last month. However, pork production is lowered as USDA’s Quarterly Hogs and Pigs report indicated a slower-than-expected expansion in farrowings during the second quarter.
The July World Agricultural Supply and Demand Estimates (WASDE)report implies lower than previously forecast hog slaughter later in the year, but strong hog prices and lower feed costs are expected to provide incentives to feed hogs to heavier weights.
For 2015, beef and broiler production is forecast higher, but pork production is forecast lower. Pork production is reduced as supplies of market hogs will remain relatively tight.
Pork imports for 2014 are reduced slightly. However, despite high prices, pork exports remain robust and forecasts for both 2014 and 2015 are raised.
Cattle and hog price forecasts for 2014 are raised from last month on the strength of demand. The hog price forecast is raised for 2015 on expectations of tighter supplies and continued strong demand.
The full report can be found here
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