Cattle prices for 2015 and 2016 are reduced from last month on current large supplies of market-ready cattle, weaker demand and competition from relatively large supplies of competing meats. Hog prices are raised for both 2015 and 2016 as demand has firmed.  

Broiler prices are lowered for both 2015 and 2016 on relatively large broiler meat supplies. Turkey prices are raised for 2015 on current price strength, but the forecast for 2016 is unchanged from last month. Egg prices for 2015 are lowered reflecting recent price declines, but the forecast for 2016 is unchanged.

Although butter prices have declined sharply from recent high levels, domestic demand for butter is expected to support relatively high butter prices during 2016. The butter price for 2015 is unchanged at the midpoint, and is raised for 2016. Cheese prices are raised for 2015 and 2016 on support from domestic demand. Nonfat dry milk (NDM) prices are forecast higher in 2015 and 2016 reflecting a rebound in both domestic and international prices. Whey prices are lowered for oth 2015 and 2016 as supplies are large.

Class III prices are raised for 2015, but lowered for 2016 as the decline in whey prices more than offsets higher cheese prices. Class IV prices are raised for both 2015 and 2016 due to higher butter and NDM prices. The all milk price is raised to $16.90 to $17.00 per cwt for 2015, but lowered to $16.05 to $16.95 per cwt for 2016.

2015 Projections

Commodity September October Change
Steers  ($/cwt) $153.50 $149.19 -$4.31
Barrows & Gilts  ($/cwt) $50.50 $50.82 $0.32
Broilers  (cents/lb.) $92.50 $90.00 -$2.50
Turkey    (cents/lb.) $116.00 $117.10 $1.10
Eggs  ($/dz) $2.01 $1.95 -$0.05
Milk  ($/cwt) $16.90 $16.95 $0.05
WASDE:  October  2015

Price Projections (2015 vs. 2016)

Commodity 2015 2016 Change
Steers  ($/cwt) $149.19 $141.50 -$7.69
Barrows & Gilts  ($/cwt) $50.82 $48.50 -$2.32
Broilers  (cents/lb.) $90.00 $87.50 -$2.50
Turkey    (cents/lb.) $117.10 $114.50 -$2.60
Eggs  ($/dz) $1.95 $1.71 -$0.24
Milk  ($/cwt) $16.95 $16.50 -$0.45
WASDE:  October  2015