CME: September Beef Inventory Lower Than a Year Ago05 November 2013
US - The supply of beef, pork and chicken at the end of September was slightly below year ago levels and it will likely continue to drift lower in the next two months, write Steve Meyer and Len Steiner.
Total pork inventory as of 30 September was 566.4 million pounds, 10.2 per cent lower than a year ago but 8.9 per cent higher than the five year average.
The year over year decline in pork inventories was expected as slaughter levels declined. The reduction in pork inventories tends to be supportive of pork prices going into the holiday season.
Ham inventories at 221.2 million pounds were 2.8 per cent higher than a year ago and 26.9 per cent higher than the five year average.
The combination of higher ham inventories and relatively firm ham prices leads us to think that export demand must be quite robust for this item.
Total beef inventories were 445.1 million pounds, 4.7 per cent higher than a year ago and 4.3 per cent higher than the five year average.
The increase was due to significantly more boneless beef going into storage in September but USDA provides no visibility as to what kind of beef this is, whether it is fat trimmings, lean beef, beef cuts or imports.
Inventories of chicken breast have declined sharply, which likely has contributed to the decline in breast meat prices.
End users are gearing up for lower chicken prices in 2014 and are quickly reducing their stocks.
TheCattleSite News Desk