Source: Michael Fielding, MEATINGPLACE, 3/23/17


USDA’s latest cold storage report released Wednesday did not present any major surprises, according to the Daily Livestock Report, published by Steiner Consulting Group. “But broadly speaking we thought it buttressed the bullish case for beef prices in the very near term,” wrote Len Steiner, president of Steiner Consulting Group.

Total red meat supplies in freezers were up 1 percent from the previous month but down 6 percent from last year, according to USDA. Total pounds of beef in freezers were down 7 percent from the previous month and down 1 percent from last year.
February beef inventories declined by 35.5 million pounds, or 6.6 percent, from January levels — “far more than we normally see at this time of year,” Steiner wrote. “And inventories declined even as beef supplies continued to increase. Robust exports, a notable decline in imports and a favorable weather conditions likely all contributed to the larger than expected stock depletion."

Meanwhile, frozen pork supplies were up 9 percent from the previous month but down 9 percent from last year. Inventories of pork bellies were up 15 percent from last month but down 74 percent from last year.

“There was no appreciable increase in belly stocks during February, which is not a surprise since belly prices were near record highs,” according to Steiner. “We should see more bellies go into freezers in March and April, but maybe not enough to bring the stocks to normal levels.”

Poultry up slightly month-over-month
Total frozen poultry supplies on Feb. 28, 2017, were up 5 percent from the previous month and up 2 percent from a year ago, according to USDA. Total stocks of chicken were up 2 percent from the previous month but down 2 percent from last year and total pounds of turkey in freezers were up 12 percent from last month and up 11 percent from Feb. 29, 2016.

“Normally we see a drawdown in stocks during [February],” according to Steiner. “Breast meat inventories remain burdensome. The inventory of leg quarters increased 3 percent from the previous month but remains 13 percent under the five-year average. Dark meat prices continue to perform well due to robust exports and improved domestic spring demand.”

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