Market News

Cold storage numbers look friendly to hog and belly futures

There was less red meat in cold storage than expected at the start of the month. The USDA says that total red meat supplies were down 6% from a year ago at 1.041 billionpounds, with the biggest cut in frozen pork, which was down 10% from last year to 593.137 million pounds on a combination of reduced slaughter rates and good demand. The closely watched pork belly stocks were pegged at 73.331 million pounds, a 26% decrease on the year, and hams came out at 29.204million pounds, down 43% from a year ago. Analyst David Kohli says the numbers are “really good news for hog traders” and should support futures.

Total beef was down 1% from last year at 422.457 million pounds, as a 2% increase in boneless beef stocks offset a 14%decrease in beef cuts. That's on economic uncertainties limiting consumer demand. Lamb and mutton in cold storage was placed at 19.424 million pounds, 13% more than a year ago.

Frozen poultry was reported at 1.147 billion pounds, 4% below a year ago. Chickens made upthe bulk of the total at 637.700 million pounds, which is 17% less than last year on the rise in demand for less expensive protein. Turkey supplies were 19% above a year ago at 507.931 million pounds.