USDA’s Economic Research Service released the Livestock, Dairy and Poultry Outlook report, showing commercial beef production for 2022 is forecast to rise 210 million pounds to 27.38 billion lbs., due to expected strong fed cattle slaughter and heavier than average dressed weights.
“Cattle prices will likely be supported by increased demand by packers as the sector overcomes constraints on throughput and tighter supplies of steers and heifers in feedlots,” USDA said in its report. “Feeder cattle prices will likely average higher during 2022 as feedlots bid for tighter cattle supplies.”
According to the report, the first-quarter price for feeder steers was lowered by $1 to $158/cwt from last month. The feeder steer 2022 forecasts for the second, third and fourth quarters were raised by $2 to $158, $162 and $167/cwt, respectively.
U.S. beef exports set a record for December at 288 million lbs., about 1 percent above a year earlier and more than 9 percent above the five-year average, due to larger year-over-year shipments to China, South Korea, Canada and Taiwan.
December’s beef imports totaled 273 million lbs., up 30 percent from a year ago. Canada remained the largest supplier of beef imports, accounting for 28 percent with 942.3 million lbs., followed by Mexico with 674.8 million lbs. The 2022 annual forecast for beef imports was raised 105 million lbs. from January to 3.370 billion lbs.
