According to the USDA’s latest World Agricultural Supply and Demand Estimates report, the USDA increased its forecast for total meat production in 2014.
“Production is raised for beef, pork, and broilers as lower feed prices encourage producers to raise animals to heavier weights,” the USDA said in the report.
Both corn and soybean prices were projected lower from July’s report. The USDA forecasts 2014-2015 soybean prices to range between $9.35 to $11.35 per bushel and corn prices between $3.55 and $4.25 per bushel.
The USDA also sees lower feed costs leading to higher hog, cattle and broiler weights in 2015. Hog price forecasts were unchanged for 2014 and lowered for 2015 on slightly weaker expected demand.
Pork imports for 2014 and 2015 were up slightly, as were forecasts for pork exports in 2014 and 2015.
As the USDA explained, “Despite the closure of Russia to U.S. exports into 2015, pork export forecasts for 2014 and 2015 are raised as demand in other major markets is expected to grow.”