Increased meat costs
World AG Outlook board chair Mark Jekanowski says poultry price estimates also increased… “broilers by one cent a pound and turkeys by one point eight cents a pound. And those higher prices forecast into 2021. Just reflect the expectations of tighter supplies, given the higher feed costs that that industry is going to be facing.” Meanwhile, one notable change in the meat trade forecast…. “We pulled back our pork export forecast and that is also just reflecting softer demand by several of our key markets, including China, where China is rebuilding their herd. Jekanowski says USDA made mostly minor changes on its meat supply and use balance sheet for 2020…. “Looking forward into 2021 with the tighter supplies, especially of corn and soybeans and much higher prices that are expected to follow from that, we expect that that will show up in some reduced expectations for meat production. So as a result, we pulled back our forecasts for both broiler and turkey production. We also pulled back our forecast for beef production, and that reflects, in part later carcass weights. He says the only increase expected for 2021 is in pork production. That reflects the data that we got last month in the Hogs and Pigs report and also the slaughter data that we've been observing, suggesting that pork supplies are likely to increase. But even there, the increase in port production forecast is relatively small.