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Daily livestock report aug 23 2012
- 1. Vol. 10, No. 164 / August 23, 2012
Market Comments MILLION
POUNDS
Meat Protein Stocks in Cold Storage
Combined Inventory of Beef, Pork and Poultry in Refrigerated Warehouses
2,400
The latest USDA cold storage survey indicated that at
the end of July total stocks of beef, pork and poultry were 2.206 2,300
billion pounds, 2.5% higher than a year ago and 2.1% higher than
the five year average. Despite the heavy stocks, the pace of inven- 2,200
tory drawdown in July was encouraging as stocks declined about
2.2% from the previous month. Much of the increase in stocks is 2,100
due to more pork in storage but beef inventories also are increas-
ing. 2,000
,
Pork in freezers rose sharply in the spring and it
1,900
has remained well above year ago levels all summer. Total
stocks were reported to be 546.6 million pounds, 20% more than a 1,800
year ago. Inventories of a number of items remain particularly
heavy. Inventories of pork loins were 28.6 million pounds, 32% 1,700
higher than a year ago. Pork loin demand was quite good earlier JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
in the spring but extreme drought and high temperatures appear 5-Year Average 2007 - 2011 2011 2012
to have slowed down sales and left more inventory in the freezer
than a year ago. Similarly, inventories of pork ribs were pegged 000 POUNDS FROZEN PORK, COLD STORAGE STOCKS
at 62.4 million pounds, 52% more than a year ago while invento-
680,000
ries of trimmings at 45.2 million pounds were 24% higher than
last year. Ham stocks were 154..6 million pounds, 15% higher
630,000
than a year ago. Pork bellies are one of the few items showing a
reduction in stocks compared to last year. Total belly stocks were
580,000
28.0 million pounds, 5% lower than a year ago. Higher pork freez-
er inventories and reports that producers have embarked in sig-
nificant culling of the breeding herd have put downward pressure 530,000
on hog and pork prices in the near term. With corn and soybean
meal prices at record high levels, producers are wasting no time 480,000
in pushing hogs to market. Pork production last week jumped
6.7% compared to year ago levels and reports are for big numbers 430,000
again this week. Heavy freezer stocks clearly are not helpful in 5-Year Average 2007 - 2011 2011 2012
this situation. Hog futures dropped sharply on Wednesday, with 380,000
the December contract closing at a contract low of 70.8 cents per
pound.
Total beef in cold storage was 455.7 million pounds, Broiler meat supplies have declined sharply in
10% more than a year ago. Boneless beef stocks were up 6% recent months as the industry has curtailed produc-
while beef cut inventories were up 33%. End users remain very tion. Total broiler supplies in freezers were 648.6 million
concerned about beef price inflation later in the year and many pounds, 14% lower than a year ago. Breast meat inventories
are using freezer hedges to protect prices at least for the next few were down 27%, wings were down 31% and leg quarters were
months. Imports of boneless beef are above year ago levels but down 16%. Tight inventories and expectations of further cut-
the pace of imports has slowed down, keeping stocks of boneless backs remain bullish in the short to medium term for broiler
beef in check. Fat trim supplies are also more current. prices. See page 2 for detailed table.
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- 2. Page 2
Vol. 10, No. 164 / August 23, 2012
USDA STOCKS IN COLD STORAGE REPORT
COMMODITY Stocks in All Warehouses Percent Of
31-Jul-11 30-Jun-12 31-Jul-12 Jul-11 Jun-12
1,000 Pounds
Frozen Pork
Picnics, Bone-In 9,707 13,784 9,421 97 68
Hams, Total 134,397 147,445 154,608 115 105
Bone-in 72,567 78,779 76,593 106 97
Boneless 61,830 68,666 78,015 126 114
Bellies 29,503 49,034 28,003 95 57
Loins, Total 21,715 31,449 28,602 132 91
Bone-in 5,697 10,839 9,264 163 85
Boneless 16,018 20,610 19,338 121 94
Ribs 41,199 71,933 62,432 152 87
Butts 16,484 29,345 25,126 152 86
Trimmings 36,504 46,447 45,243 124 97
Other 89,230 103,074 101,323 114 98
Variety Meats 28,782 29,015 27,155 94 94
Unclassified 46,816 71,354 64,638 138 91
Total 454,337 592,880 546,551 120 92
Frozen Beef
Boneless 360,200 400,672 382,726 106 96
Beef Cuts 55,000 68,060 73,017 133 107
Total 415,200 468,732 455,743 110 97
Other
Veal 3,617 3,567 4,151 115 116
Lamb & Mutton 21,034 22,460 24,325 116 108
Total 24,651 26,027 28,476 116 109
Total Red Meat 894,188 1,087,639 1,030,770 115 95
Chicken
Broilers (Whole) 22,668 13,108 13,083 58 100
Breasts and Breast Meat 146,612 110,057 107,166 73 97
Leg Quarters 122,584 88,507 103,453 84 117
Wings 72,477 45,098 50,012 69 111
Other Chicken 392,773 389,367 374,924 95 96
Total 757,114 646,137 648,638 86 100
Turkey
Whole Turkeys 287,052 284,921 303,759 106 107
Turkey Breast 69,832 80,694 73,921 106 92
Other 167,962 181,476 177,304 106 98
Total 524,846 547,091 554,984 106 101
Ducks 6,091 4,099 4,517 74 110
Total Poultry 1,288,051 1,197,327 1,208,139 94 101