Ag News
Economist Looks at USDA S&P
Wed, 12 May 2010 11:18:48 CDT2010 is shaping up to
be a much better year for U.S. livestock producers, thanks to an improving
economy and tighter supplies of beef, pork and poultry. John Anderson, livestock
economist with the American Farm Bureau Federation, says - livestock producers
have seen a return to profitability in the past two months and that’s good
because it provides a good opportunity to rebuild
equity.
style="FONT-FAMILY: arial; FONT-SIZE: 13px">In the Agriculture Department’s
initial assessment of the U.S. and world crop and livestock supply and demand
estimates released yesterday, total U.S. meat production for 2011 is projected
to be slightly higher than 2010, as increased pork and poultry production more
than offsets a decline in beef production. Anderson said this is a – positive
sign that shows livestock producers are optimistic enough to increase their herd
sizes, following two years of reducing herd sizes.
style="FONT-FAMILY: arial; FONT-SIZE: 13px">Anderson says - evidence for
improving consumer demand has been mounting in recent weeks. Department of
Commerce data shows consumer spending at food service and accommodations
facilities grew at a rate of 8 percent in the first quarter of 2010. This was
the first quarter-over-quarter increase since the second quarter of
2008.
As for
USDA’s May crop report, Anderson said the forecasts of larger U.S. and global
grain stocks is the big news. The increase in stock levels is due to forecasts
for good crop production in 2010 and strong world competition. Still, USDA’s
corn stocks projection fell below many forecasts due in part to better export
demand.
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