Market_Lower_250

The latest USDA World Agricultural Supply and Demand Estimates Report forecasts lower beef production compared to the previous quarter from the third quarter of 2013 through the second quarter of 2014.

Compared to a forecast from the previous month’s report, the USDA has lowered its beef production projection by 100 million pounds for the year. The new estimate is 576 million lower than totals in 2012.

Looking ahead to annual beef production in 2014, the USDA remains steady on its prediction of 24.1 billion, over 1.8 billion lower than the 2012 figure.

The forecast for overall red meat production is reduced from the previous month due to lower beef, pork and turkey production. Fewer cattle were slaughtered in Q2 than expected which the USDA says more than offsets higher slaughter numbers expected from July to December.