USDA's Economic Research Service released it's latest Livestock, Dairy, and Poultry outlook this week. Here are the highlights...

Hogs: USDA lowered its fourth-quarter estimate of commercial pork production by 80 million pounds due to lower-than-expected hog slaughter in October. Production is expected to be nearly 6.21 billion pounds, less than 1 percent above fourth quarter last year. Fourth-quarter prices for live equivalent 51-52 percent lean hogs are expected to average $41-$43 per cwt, or about 6 percent above last year. Cattle: Fed cattle prices have declined by almost 9 percent since their high in August 2008, and wholesale cutout values have declined by 15 percent from their peak in July 2008. Commercial cow slaughter is increasing seasonally into the fourth quarter of 2008, and cow prices are declining. Higher interest rates and equity requirements could adversely affect wheat pasture grazing opportunities as well as demand for lighter feeder cattle, thus affecting feeder cattle prices. Beef/Cattle Trade: Foreign Ag Service Export Sales Reports show declines in U.S. beef exports, likely affected by a strengthening of the dollar, declining global demand for more expensive cuts of grain-fed beef, and obstacles in financing due to tightening credit markets. Cattle imported into the United States from all sources are expected to decline 12 percent from last year to 2.2 million head. Cattle from Mexico are still well behind historical levels. Dairy: Milk production will advance slightly in 2009 on yields as cow numbers decline modestly. Weakening demand, especially exports, presage lower prices across the board in 2009.

See the complete report at http://www.ers.usda.gov/publications/ldp/2008/11Nov/ldpm173.pdf.