WASDE - Livestock/MilkMar 10, 2010 LIVESTOCK, POULTRY, AND DAIRY: Total U.S. meat production for 2010 is reduced as lower pork and turkey production more than offset higher broiler production. Beef production is little changed as higher first-quarter steer and heifer slaughter is offset by lower carcass weights. Winter weather has stressed cattle in many parts of the country which is reflected in lighter carcass weights. Pork production is lowered as slaughter in the first and second quarters are reduced and weights during the first quarter have been lighter than expected. USDA will release the Quarterly Hogs and Pigs report on March 26, which will provide an indication of producer responses to moderating feed prices and improved hog prices. The turkey production forecast is reduced. Relatively weak turkey prices in 2009 reduced incentives to expand production and hatchery data continues to point to lower production in 2010. Broiler production is forecast higher as hatchery and slaughter data point to larger production in the first quarter. Export forecasts are unchanged from last month for the major meats. Although the recent resolution of pork sanitary issues will permit exports to Russia, exports to that market will be limited by import quotas. Cattle, hog, and poultry price forecasts are raised for 2010 as tighter meat supplies are forecast this month. The milk production forecast is raised for 2010 with milk production expected to be fractionally above 2009. Cow slaughter is relatively low and January milk cow numbers were higher than expected. The pace of herd reduction is slowed from last month. Dairy exports on both a fat and skim-solids basis for 2010 are lowered, due to slightly weaker-than-expected international demand during the early part of the year. Imports for 2009 are adjusted to reflect December trade. Fat and skim-solids ending stocks are forecast higher for 2010 as production is increased and exports are reduced. Cheese prices are reduced as higher stocks are expected to pressure prices. Butter price forecasts are raised slightly on the strength of current demand although higher milk supplies and weaker cheese prices may encourage higher butter production pressuring prices later in the year. Nonfat dry milk (NDM) prices are forecast lower as export demand lags. Whey prices are raised slightly reflecting recent market strength. The Class III price is reduced as weaker cheese prices more than outweigh gains in whey prices. The Class IV price forecast is lowered reflecting weaker NDM prices which more than offset higher butter prices. The all milk price for 2010 is forecast at $15.55 to $16.15 per cwt. DISCLAIMER: This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation by Commodity & Derivative Adv. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Read Entire Disclaimer. | 
