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Short cattle supplies, cheaper feed and a strong outlook for beef exports create a favorable environment for U.S. producers now and into 2014, according to the December Livestock, Dairy, and Poultry Outlook report from USDA.

As of early December, monthly average corn prices had dropped by almost a third from August’s monthly average price, due to good corn yields, abundant supplies, and developments toward relaxing the Renewable Fuels Standard, according to the report. Also, grazing opportunities in winter-wheat areas look good, and favorable moisture in several areas bodes well for pastures next spring.

Other key points from the report include: