The changes were based on updated December 1, estimates the number of pigs, which was above previous expectations. Pork production in 2017 is expected to grow by 5 percent in 2016, and will be approximately 1% more than expected a month ago in the previous version of the WASDE forecast.

Forecast beef production in the last quarter of 2016 was also adjusted upwards, and then reduced by 95 million pounds for the first quarter of 2017. The number of cattle fattening in November and December rose.

USDA also made a significant revision upwards of the forecast of prices for cattle in the first quarter of 2017 based on the combined effects of such factors as the reduction in the supply of cattle to the market and the decline of beef production, along with lots of beef exports. In the second quarter of 2017, beef production is expected to increase by increasing market supplies of cattle placed on feed in November. The same trend will continue, according to forecasts, and in the spring of this year.

According to USDA, the number of pigs born September-November 2016, increased by 5%. This assessment took the market by surprise and led to the correction of forecasts pork production in the spring of 2017 at 215 million pounds upwards. The influence of the additional production of pork prices is expected to be partially offset by improving prospects for exports of U.S. pork in world markets.