Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 6/23/10

Total red meat supplies in freezers on May 31 were down 4 percent from the previous month and down 18 percent from last year, according to USDA's monthly Cold Storage report.

Frozen pork supplies were down 7 percent from the previous month and down 23 percent from last year. Stocks of pork bellies were down 12 percent from last month and down 44 percent from last year.

Total frozen poultry supplies on May 31, 2010 were up 11 percent from the previous month but down 5 percent from a year ago. Total stocks of chicken were up 11 percent from the previous month and up 9 percent from last year. Total pounds of turkey in freezers were up 11 percent from last month but down 20 percent from May 31, 2009.

USDA noted, however, that beginning with this May 31 report a change in classification of reported data in the "other chicken" category has resulted in an increase of leg quarters, legs, and paws and feet along with a corresponding decrease in other chicken.

There is also an increase in reported data for drumsticks, leg quarters, paws and feet, and other chicken due to increased coverage and participation of facilities in the survey. Updated historic data prior to May 31 for these facilities are unavailable.

JPMorgan analyst Ken Goldman called the report positive for Smithfield because of low pork levels, while Tyson Foods could benefit from lower pork and beef levels.

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