USDA Anticipates Lower Meat Prices

According to the latest outlook, the USDA is expecting lower prices across the meat sector. World Ag Outlook Chair Mark Jekanowski said that expectation comes from production changes.

"Our beef production forecast we've pulled back a bit, mainly based on lower steer and heifer slaughter, and given the very low prices for cattle recently that also suggests producers might be holding some cattle back from marketing."

Meanwhile, the USDA has increased it's pork production numbers a little bit.

"Broiler production we've pulled back quite a bit this month and this is after several consecutive months or increasing our production estimates for broilers, but again this time around, just given the real collapse in demand especially at the restaurant and food service level."

Meanwhile he says a decrease in demand is affecting prices.

"It's showing up as a pretty large reduction compared to last month and also these prices are down quite a bit year over year If you look at 2020 compared to 2019, and that's the same for broilers, steer, and hogs," Jekanowski added.

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