Weakened demand leads to lower cattle, hog prices forecast
Citing slackened demand, USDA this week lowered its 2010 price forecasts for cattle and hogs. In its monthly world supply and demand report, the agency projected average steer prices for the rest of this year at $92-$96 cwt., down from last month’s range of $94-$98/cwt.
USDA projected average hog prices at $54-$57/cwt., down slightly from last month’s range of $55-$57/cwt. Analysts echoed USDA’s analysis of the demand situation. The Daily Livestock Report (DLR), published by the Chicago Mercantile Exchange said, “On the demand side, things do not appear to be quite as good as some had hoped for.” The DLR noted retailers are returning to featuring cheaper meat cuts after Memorial Day and the negative impact on meat prices of a relative abundance of chicken.
In terms of current cattle prices, the DLR said beef and dairy cow slaughter remain noticeably higher than a year ago, which could reflect producers taking advantage of the relatively higher prices for slaughter cows by selling them.
Citing slackened demand, USDA this week lowered its 2010 price forecasts for cattle and hogs. In its monthly world supply and demand report, the agency projected average steer prices for the rest of this year at $92-$96 cwt., down from last month’s range of $94-$98/cwt.
USDA projected average hog prices at $54-$57/cwt., down slightly from last month’s range of $55-$57/cwt. Analysts echoed USDA’s analysis of the demand situation. The Daily Livestock Report (DLR), published by the Chicago Mercantile Exchange said, “On the demand side, things do not appear to be quite as good as some had hoped for.” The DLR noted retailers are returning to featuring cheaper meat cuts after Memorial Day and the negative impact on meat prices of a relative abundance of chicken.
In terms of current cattle prices, the DLR said beef and dairy cow slaughter remain noticeably higher than a year ago, which could reflect producers taking advantage of the relatively higher prices for slaughter cows by selling them.
