Total red meat supplies in cold storage essentially were neutral to cattle prices since supplies were up from a month earlier but down from a year earlier.
However, the report may be seen as somewhat bearish for hog prices as total stocks were down from Nov. 30 but up from a year earlier.
Total US red meat supplies in cold storage on Dec. 31 were down about 1% from a month earlier and down 6% from a year earlier, according to the USDA’s National Agricultural Statistics Services’ monthly Cold Storage report Wednesday.
Total meat supplies were reported at 1.023 billion pounds, compared with 1.032 billion on Nov. 30 and 1.084 billion on Dec. 31, 2016.
Total frozen poultry supplies were higher at 1.199 billion pounds, up 11 million, or 0.93%, from 1.188 billion a month earlier and up 111.0 million, or 10.2%, from 1.088 billion a year earlier.
BEEF SUPPLIES MIXED
Total pounds of beef in US freezers at the end of December amounted to 489.543 million pounds, up 4.350 million, or 0.90%, from 485.193 million a month earlier but down 78.345 million, or 13.8%, from 567.888 million a year earlier.
Total pounds of beef cuts on ice were reported at 42.436 million, up 1.176 million, or 2.85%, from 41.260 million a month earlier but down 996,000, or 2.29%, from 43.432 million a year earlier.
Boneless beef in cold storage on Dec. 31 amounted to 447.107 million pounds, up 3.174 million, or 0.71%, from 443.933 million on Nov. 30 but down 77.349 million, or 14.7%, from 524.456 million on Dec. 31, 2016.
PORK SUPPLIES MIXED TO HIGHER
Pork supplies were mixed, but were up in the more-important year-earlier comparison. Total pork in cold storage was reported at 490.782 million pounds, down 11.542 million, or 2.30%, from 502.324 million on Nov. 30 but up 15.395 million, or 3.24%, from 475.387 million a year earlier.
Pork bellies on ice were up sharply at 39.675 million pounds, a gain of 4.511 million, or 12.8%, from 35.164 million just a month earlier. Frozen belly stocks also were up 21.689 million, or 120.6%, from 17.986 million a year earlier.
Cold storage ham supplies, at 81.099 million pounds, also were down from a month earlier but up significantly from a year earlier. Compared with Nov. 30’s inventory of 98.224 million pounds, ham stocks were down 17.125 million, or 17.4%, but ham supplies were up 12.278 million pounds, or 68.3%, from 17.986 million a year earlier.
CATTLE, BEEF RECAP
No cattle were sold Wednesday on the Livestock Exchange video auction. Only 108 cattle traded last Wednesday on the Livestock Exchange video auction at $119.75 per cwt, up $0.75 from the previous week.
The USDA has about 600 head selling this week in the cash market at mostly $123 per cwt. Cash cattle traded early last week at $118 to mostly $120 per cwt on a live basis, about steady with the bulk of the previous week’s action, and then at $123 on Friday, up about $3. On a dressed basis, cattle traded at $192 to $193 early, steady to up $1 and then at $195 on Friday, up $3.
The USDA’s choice cutout Wednesday was up $1.14 per cwt at $207.99, while select was up $0.69 at $200.85. The choice/select spread widened to $7.14 from $6.69 with 100 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Tuesday, was $148.03 per cwt, up $0.15. This compares with Wednesday’s Jan settlement of $148.15, down $0.47 and Mar’s settlement of $146.40, down $0.57.