USDA has lowered it price forecast for hogs and raised production estimates. The forecasts were made in the World Agricultural Supply Demand Estimates Report issued today by USDA. Overall meat production for 2010 is raised as higher pork and broiler production outweigh slightly lower beef production.

The price forecast for barrows and gilts (51 percent to 52 percent lean) was set at $42 to $43 per hundredweight for 2009. The report sees 2010 price at $46 to $50 per hundredweight.

“The recent Quarterly Hogs and Pigs report indicated a slower-than-expected decline in farrowing intentions which, coupled with continued gains in pigs per litter, results in larger supplies of slaughter hogs in 2010,” according to the report  “In addition, lower forecast feed prices compared with last month supports heavier hog carcass weights.”

Read the full report