Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 8/24/09

Two USDA reports issued late Friday showed poultry supplies remain below year-ago supplies and five-year trends, while reduced pullets hatched indicate fewer birds in the future.

In its Cold Storage report, USDA put broiler supplies at the end of July at 677.7 million pounds. While indicating a slight increase — the largest absolute figure since January — the total was still an 8.3 percent decline from a year ago and 5.5 percent lower than the five-year average.

In a note to investors, J.P. Morgan analyst Ken Goldman noted that the two most important bird parts — breasts and leg quarters — were down 6.1 percent and 21.9 percent, respectively. He also noted a 40 percent decrease in paw inventories could indicate that product is still flowing to the Far East.

Overall, Goldman said the Cold Storage report was positive for integrators such as Sanderson Farms, Pilgrim's Pride and Tyson.

Chicken and Eggs report

In its July Chicken and Eggs report, USDA reported the fifth decline in six months in pullets hatched, which fell 3.8 percent from a year ago. Pullets hatched are an indication of the amount of chicken meat that will be available nine months from now.

Total pullets in inventory fell 1.8 percent from a year ago, the ninth consecutive decline and the fewest pullets in inventory during July since 2002, according to Goldman.