Less beef production but prices should continue to rise, according to USDA.
The USDA is projecting U.S. beef production to be down in 2015, according to today’s World Agricultural Supply and Demand Estimates report. Overall the projections have 2014 beef production coming in at 1.26 billion lbs. less than last year’s mark of 25.7 billion lbs. The downward trend is expected to continue into 2015 with less than 23.7 billion lbs. of beef production slated.
Feedlots are predicted to raise cattle to heavier weights for the rest of the year and in 2015.
Prices continue to rise in the projections thanks to consumer demand. The October data had beef prices settling at an average of $152.90/cwt. for 2014, but the November projections show a $1.50 increase per cwt. The 2015 projections showed an even bigger increase for November data at $5/cwt. additional to the $149.16/cwt. in October.
Exports are off 1 million lbs. from the October projection, while beef imports show an increase of 139 million lbs. for 2014’s projections.