The U.S. Department of Agriculture (USDA) has raised its forecast for 2014 U.S. beef production however production will still be significantly below 2013 output. The USDA has adjusted its forecast for 2014 to 11.04 million tons of beef – an increase of 0.5% from its November forecast however production for 2014 will be 669,000 tons, or 5.7% below 2013 production levels. Supplies of cattle on feed remain limited and demand for replacement heifers remains strong limiting the number of cattle going into feedlots next year. The 0.5% increase in the USDA prediction for 2014 is because the department indicates that U.S. steer carcass weights may be slightly higher next year. Estimates for beef imports for 2014 remain unchanged and are expected to be flat. Exports are expected decrease by 7.7%. The limited supply will likely push up domestic beef prices in the U.S. opening opportunities for foreign countries to supply the U.S. market.
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