USDA's Jan. 30 cattle report made news by forecasting the lowest beef cow inventory since 1963. USDA Chief Economist Joe Glauber says the news from that report is reflected in the February World Supply and Demand estimates for livestock and is part of an overall trend this month in the livestock and poultry sectors.
"We are seeing reductions in those numbers," Glauber says. "We're now forecasting reduction across the board for livestock and poultry; we are seeing drops in prices because of the reduced demand."
Another big item from Tuesday's report was in the Dairy Supply and Demand forecast, in which the all milk price is estimated at $11.30 per hundredweight, the lowest since 1978.
"That's a lot due to weak demand," Glauber says. "Particularly foreign demand, because we've seen the return of Australia and New Zealand into those dairy markets."
According to Glauber the prices for some dairy products such as butter, cheese and whey are coming close to triggering price supports.