USDA Lowers Beef Production Forecasts

Beef production forecasts have been lowered for this year and next.

But, why?

"On the one hand we're seeing higher cow slaughter, but on the other hand we're seeing a reduction in steer and heifer slaughter and lower carcass weights," noted USDA World Agricultural Outlook Board Chair, Mark Jekanowski. "So those lower rates more than offset the increase cow slaughter."

However, steer prices are expected to rise both in 2021 and 2022.

"We increased our steer price forecast for 2021 by a dollar per hundred weight. Mainly what we're looking at here is just price activity to date, but also noting that there's been some strong demands supporting those prices. And we expect that to carry in to 2022 where we increased our steer price forecast by $2 cwt. So for 2022 we currently have a steer price forecast of $128.25 cwt."

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