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CME: Red Meat, Poultry Report Likely Construed as Bullish

24 April 2019

US - The total inventory of beef, pork, chicken and turkey at the end of March was 2.373 billion pounds, 1.5 percent lower than a year ago but still 7.6 percent higher than the five year average, reports Steiner Consulting Group, DLR Division, Inc.

Combined red meat and poultry inventories declined 1.6 percent from the previous month compared to an average drawdown in inventory of 1.5 percent in the last five years.

The report results may be construed as neutral to moderately bullish, especially considering robust export demand later this spring and into the summer months.

The supply of boneless beef in cold storage was estimated at 420.8 million pounds, 1.3 percent lower than a year ago and near the same level as the five year average.

Boneless beef inventories declined 6.7 percent compared to the previous month while in the last five years the average drawdown has been 2.9 percent.

Lower beef imports and improving demand likely contributed to the above average drawdown and we view the number as supportive for beef prices post Easter and into Memorial Day.

The inventory of bone-in beef cuts was 29.8 million pounds, 21 percent lower than a year ago and 25 percent lower than the five year average.

End users sought to improve their inventory position going into Memorial Day but freezer stocks are lower than normal and may be viewed as supportive for beef prices, especially bone-in rib prices in late April and May.


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