Source: Michael Fielding, MEATINGPLACE, 10/25/16


Total red meat supplies were a record high for the month of September, since the data was first recorded in 1946.
In the short term, the glut of red meat may keep prices in check, according to the Daily Livestock Report. According to USDA, total beef, pork and poultry supplies in refrigerated warehouses at the end of September were estimated at 2.4 billion pounds, 1.6 percent larger than the previous month, and 11 percent higher than the five-year average.

Total red meat supplies in freezers were up 7 percent from the previous month and up slightly from last year, according to USDA’s Cold Storage report. Total pounds of beef in freezers were up 9 percent from the previous month and up 4 percent from last year.

Total pounds of beef were a record high for the month of September, since the data was first recorded in 1932.

“The increase in inventories comes at a time when U.S. beef imports have declined sharply, implying that significantly more domestic boneless beef is ending up in cold storage,” the DLR analysts wrote. “This should dampen demand for some beef products in the short term. ... We suspect that part of the reason for the increase is due to the oversupply of fat beef trim.”

Meanwhile, frozen pork supplies were up 5 percent from the previous month but down 2 percent from last year. Stocks of pork bellies were down 22 percent from last month but up 130 percent from last year.

“Overall demand for pork remains in good shape and packers have been quite successful in keeping the flow of product moving through the various channels,” the DLR analysts also noted. “However, not all is good in the pork complex. Slaughter in October is expected to be even bigger and exports are showing signs of slowing down. We expect pork inventories to increase further in October. For now, however, we think markets will view the curret report as generally neutral for prices in the short term."

Total frozen poultry supplies on Sept. 30 were down 2 percent from the previous month but up 2 percent from a year ago, according to USDA. Total stocks of chicken were down 1 percent from the previous month and down 4 percent from last year. Total pounds of turkey in freezers were down 4 percent from last month but up 14 percent from Sept. 30, 2015.

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