Tighter Meat Supply Situation in U.S.

WASHINGTON - Nov 9/06 - SNS -- Forecasts of total U.S. meat production for 2006 and 2007 are reduced from last month, according to the latest forecasts from the USDA's World Agricultural Outlook Board.

For 2006, slight increases in beef, pork, and turkey production are more than offset by lower broiler meat production.

For 2007, weaker forecast broiler prices coupled with higher feed prices are expected to result in a continued slowing of broiler meat production. Beef production is forecast slightly lower because the pace of feedlot marketings remains slower than expected.

The cattle price forecast for 2007 is reduced because of large cattle on feed supplies. Hog prices are raised in 2006 and early 2007 to reflect continued robust demand. Broiler price forecasts are reduced due to ample supplies and lagging product prices.

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