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Lower beef and pork prices forecast

 

The USDA expects beef and pork prices to decline this year as production picks up.

Outlook Board Chairman Seth Meyer says beef production is projected 5.5 percent higher to more than 27.6 billion pounds.  “Steer price down a little over $5 year-over-year, $3.22 of that coming this month.  Weaker demand from packers despite the fact that packer margins are pretty good.” He says increasing pork and chicken production is also putting pressure on beef prices.

Meyer says relatively weak packer demand is also depressing hog prices.  “We reduced it $2.60 cents to $45.78, that’s a little under a $5 year-over-year price decline.”  He says pork production is forecast more than four percent higher, but prices might fall almost twice that.

Meyer says any loses from Chinese tariffs should be short-term and lower prices will help U.S. pork find new markets.

AUDIO provided by USDA.