Beef and hog markets may not get real excited about Friday’s USDA Cold Storage report. Supplies of beef and pork in US freezers on May 31 were up from last year but were not out of line with the 2012-2016 averages.
Total red meat supplies in cold storage were down 2% from the previous month but up 9% from last year, showing rising supplies despite good nearby demand.
The total pounds of beef in freezers were down 1% from the May report but up 13% from last year.
Frozen pork supplies were down 2% from the previous month but up 6% from last year. Stocks of pork bellies were down 5% from last month but up 94% from last year.
BEEF SUPPLIES NEAR AVERAGE
Despite being up from a year ago, the amount of beef in cold storage isn’t very far out of line with the 2012-2016 average, a market analyst said. And given the amount of beef being produced, the amount in cold storage could be expected to rise.
The amount of beef in cold storage as of May 31 was reported 465.4 million pounds, down 5.6 million, or 1.19%, from April 30’s 471.0 million but up 53.9 million or 13.1%, from 411.5 billion a year earlier.
The USDA’s Market News reports 2018 total beef production up 3.6% so far this year at 12.505 billion pounds, compared with 12.072 billion a year ago.
However, the 2012-2016 average amount of beef in cold storage on May 31 is 458.9 billion pounds, so the latest volume on ice in this report was up only 6.5 million, or 1.42%, from the five-year average.
Total boneless beef was listed at 38.6 million pounds, up 2.6 million, or 7.22%, from 36.0 million a month earlier and up 3.8 million, or 10.9%, from 34.8 million a year earlier.
By contrast, boneless beef in cold storage amounted to 426.8 million pounds, down 8.2 million, or 1.89%, from 435.0 million a month earlier but up 50.1 million, or 13.3%, from 376.7 million a year earlier.
PORK STOCKS ALSO NEAR AVERAGE
As with beef, pork supplies were reported larger than last year but near the 2012-2016 average.
Total pounds of pork in cold storage on May 31 was 621.7 million, down 13.0 million, or 2.05%, from 634.7 million a month earlier but up 33.5 million, or 5.70%, from 588.2 million a year earlier. Compared with the previous five-year average of 628.4 million, the on-hand supplies were down 6.7 million, or 1.07%.
Total pounds of pork bellies in US freezers at the end of May were 61.2 million, down from 64.6 million a month earlier but up from 31.6 million a year earier.
CATTLE, BEEF RECAP
Eleven hundred head of Nebraska cattle sold Wednesday on the Livestock Exchange Video Auction at $110 per cwt, steady with the last sales three weeks earlier.
Limited cash trade was reported last Wednesday at $180 per cwt on a dressed basis, down $4 from the previous week. Live-basis cash action was seen at $108 to mostly $109 to $110, down $1 to $3.
The USDA choice cutout Friday was down $0.25 per cwt at $217.16, while select was up $0.41 at $202.02. The choice/select spread narrowed to $15.14 from $15.80 with 49 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $142.57 per cwt, up $0.36. This compares with Friday’s Aug settlement of $149.20, up $0.72.