The U.S. Department of Agriculture lowered their forecast of total red meat and poultry production from last month in the latest World Agricultural Supply and Demand Estimates (WASDE) report. This is due to an offset of lower pork, broiler and turkey production.
At the same time the beef production forecast has increased.
“Continued relatively large cattle placements in the first quarter are expected to result in higher slaughter in 2014. Coupled with heavier carcass weights and higher expected first-quarter cow slaughter,” says the report.
Strong sales to Asian markets has increased the 2014 beef export forecast, while the beef imports remains unchanged.
Higher cattle prices were seen last month, signifying supplies are still down.