Cold Storage Report signals potential demand shortfalls

USDA’s Cold Storage Report showed beef stocks rose more than average during December, while pork stocks increased versus the normal small drawdown in inventories during the month. Given beef production dropped 6% from year-ago last month and pork production was down 7%, the inventory data suggests meat demand didn’t keep pace with supplies during December.

Beef stocks at the end of December totaled 544.0 million lbs., up 20.7million lbs. (4.0%) from November versus the five-year average increase of 4.7 million lbs. during the month. Beef stocks increased 36.8 million lbs. (7.3%) from December 2021 and were 42.6 million lbs. (8.5%) above the five-year average.

Pork stocks stood at 458.1 million lbs., up 6.6 million lbs. (1.5%) from November whereas they declined an average of 3.2 million lbs. over the previous five years. Pork inventories increased 61.7 million lbs. (15.6%) from December 2021 but were still 19.5 million lbs. (4.1%) below the five-year average.

Poultry stocks rose 70.3 million lbs. (6.7%) during December to 1.123 billion pounds. Poultry inventories were 212.1 million lbs. (23.3%) above year-ago levels.