Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 6/23/09

USDA's monthly Cold Storage report showed stocks of pork in storage was up only 0.8 percent in May from a year ago, easing concerns that H1N1 fears and export declines might build pork supplies excessively.

"We do not think this data point will drive pork prices higher immediately, but at least the industry is selling higher volumes than feared, even if prices are weak," J.P.Morgan analyst Ken Goldman wrote in a note to investors.

The only cut to see rising inventories during May was hams, which were up 23.5 percent from April, but even those stocks were more than 28 percent lower than one year ago, noted the CME Group's Daily Livestock Report. "One less slaughter day this May versus May 2008 helped all of the meat/poultry species, and the gloomy outlook for pork prices removed incentives for processors to freeze very much product," the report noted.

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