USDA’s latest cold storage report released Wednesday did not present any
major surprises, according to the Daily Livestock Report, published by
Steiner Consulting Group. “But broadly speaking we thought it buttressed
the bullish case for beef prices in the very near term,” wrote Len
Steiner, president of Steiner Consulting Group.Total red meat supplies
in freezers were up 1 percent from the previous month but down 6 percent
from last year, according to USDA. Total pounds of beef in freezers
were down 7 percent from the previous month and down 1 percent from last
year.February beef inventories declined by 35.5 million pounds, or 6.6
percent, from January levels — “far more than we normally see at this
time of year,” Steiner wrote. “And inventories declined even as beef
supplies continued to increase. Robust exports, a notable decline in
imports and a favorable weather conditions likely all contributed to the
larger than expected stock depletion."Meanwhile, frozen pork supplies
were up 9 percent from the previous month but down 9 percent from last
year. Inventories of pork bellies were up 15 percent from last month but
down 74 percent from last year.“There was no appreciable increase in
belly stocks during February, which is not a surprise since belly prices
were near record highs,” according to Steiner. “We should see more
bellies go into freezers in March and April, but maybe not enough to
bring the stocks to normal levels.”
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