LIVESTOCK, POULTRY, AND DAIRY: The forecast for total meat production in 2017 is raised from last month, as increases in commercial beef and broiler production more than offset declines in pork and turkey production. The increase in beef production reflects relatively large cattle placements in the second quarter which will likely impact fourth quarter cattle slaughter. Second quarter broiler production is raised slightly based on June production data, but no change is made to the outlying quarters. Pork production is reduced on lower expected slaughter in the third quarter. Forecast turkey production is reduced on a slower-than-expected recovery in demand and relatively poor returns to producers. Egg production is increased modestly on recent hatchery data. For 2018, the beef production forecast is raised from the previous month, as expected higher placements in late 2017 and early 2018 result in higher steer and heifer slaughter. Pork, poultry, and egg production
forecasts for 2018 are unchanged from the previous month.
For 2017, beef imports are raised, as higher-than-expected shipments of lean processing beef from Oceania in June are expected to carry into the third quarter. The beef export forecast is lowered from last month on recent trade data and an expected slowdown in global demand for the remainder of 2017. Pork imports are raised slightly on recent trade data. The second quarter pork export forecast is adjusted for June data, but the forecast for the remainder of the year is unchanged. The broiler export forecast is reduced on weak foreign demand. Turkey exports are adjusted to reflect June data. For 2018, the beef import forecast is unchanged from the previous month while exports are lowered slightly. Pork, poultry, and egg trade forecasts are unchanged from the previous month.
Fed cattle prices are reduced in 2017 and 2018 as current prices have weakened and larger expected supplies of fed cattle are expected to pressure prices. Hog price forecasts are raised for 2017 and 2018 on continued strength in demand. The annual broiler price forecast for 2017 is raised, but the price forecast for 2018 is unchanged. The turkey price forecasts for 2017 and 2018 are lowered on slow recovery in demand. The egg price forecast for 2017 is raised, but no changes are made to the 2018 price forecast.
The milk production forecasts for 2017 and 2018 are reduced from the previous month as slow growth in milk per cow more than offsets increases in dairy cow numbers. For 2017, fat basis exports are raised from the previous month on higher butter and anhydrous milk fat shipments. Fat basis imports are unchanged. The skim-solid basis export forecast for 2017 is lowered on weaker than expected whey sales. The import forecast is unchanged. For 2018, fat basis exports are raised on stronger shipments of a number of dairy products. Fat basis imports are lowered slightly. Skim-solid basis exports are raised on expected stronger sales of nonfat dry milk (NDM) and other dairy products while imports are unchanged from last month.
Butter and cheese price forecasts are raised for 2017 and 2018 as demand strength is expected to carry into 2018. The 2017 and 2018 NDM and whey price forecasts are reduced from the previous month on weak demand. The 2017 Class III price forecast is unchanged at the midpoint, but the 2018 price is lowered as lower whey prices more than offset higher cheese prices. Class IV price forecasts for 2017 and 2018 are raised as stronger forecast butter prices more than offset lower NDM prices. The all milk price is raised to $17.80 to $18.00 per cwt for 2017, but is unchanged at $18.00 to $19.00 per cwt for 2018.
Source : USDA WASDE