- Beef Tenderloins
- Ground Beef
- Chicken Thighs
- Strip Steaks
- Pork Loins
- Pork Ribs
USDA COLD STORAGE REPORT:
Total pounds of beef in freezers were up 3% from the previous month and up 6% from last year. Boneless beef stocks were up 396.5 million pounds, an increase of 6.5%, while beef cuts dropped 5.4% to 31.6 million pounds. The slow restart of the economy post-COVID19, especially in the restaurant sector, is likely contributing to the increase in total beef stocks. Total red meat supplies in freezers were up 1% from the previous month but down 12% from last year.
Frozen pork supplies were down 1% from the previous month and down 25% from last year. Declines were seen across most of the pork categories. Stocks of pork bellies were down 8% from last month, and down 2% from last year. Hams (bone-in and boneless) fell 26.3% to 124.3 million pounds, loins (bone-in and boneless) were down 30.3% to 32.5 million pounds, and spareribs decreased 35.7% to 65.3 million pounds. Two months of declining pork cold storage stocks is a sign that supplies are still moving through the supply chain and not getting backed up in cold storage. Both domestic and foreign demand are likely contributing to moving pork supplies. Total red meat supplies in freezers were up 1% from the previous month but down 12% from last year. Recall that red meat stocks dropped 17.7% from April to May amidst the pandemic, making it one of the largest month-over-month declines on record. June’s red meat stocks ranks as the second lowest level (behind May 2020) since late 2014.
Total frozen poultry fell 3.0% from last year to 1.3 billion pounds. Most of the decline occurred in turkey stocks which were 12.1% lower to 473.3 million pounds. The two main turkey categories that declined were whole turkeys and turkey breast meat, falling 11.2% and 20.3%, respectively, to 253.9 and 84.0 million pounds. Growth was seen in chicken breast meat (20.3%), thigh and thigh quarters (20.9%), legs (51.3%) and leg quarters (22.3%). These increases were partially offset by declines in drumsticks (-22.8%), thigh meat (-27.8%), wings (-14%), and paws and feet (-5.1%).
USDA CATTLE INVENTORY REPORT:
The USDA released their bi-annual inventory report. All cattle and calves in the United States on July 1, 2020 totaled 103 million head, slightly above the 102.9 million head on July 1, 2019. All cows and heifers that have calved totaled 41.4 million head, slightly below the 41.6 million head on July 1, 2019. Beef cows, at 32.1 million head, were down 1% from a year ago. Milk cows, at 9.35 million head, were up 1% from the previous year. All heifers 500 lbs. and over on July 1, 2020 totaled 16.5 million head, 1% above the 16.4 million head on July 1, 2019. Beef replacement heifers, at 4.40 million head, unchanged from a year ago. Milk replacement heifers, at 4.10 million head, unchanged from previous year. Other heifers, at 8 million head, up 1% from a year earlier. Steers 500 lbs. and over on July 1, 2020 totaled 15.0 million head were up 2% from July 1, 2019. Bulls 500 lbs. and over on July 1, 2020 totaled 2.10 million head, was unchanged from last year. Calves under 500 lbs. on July 1, 2020 totaled 28.0 million head, down slightly from the year prior. Cattle and calves on feed for the slaughter market in the United States for all feedlots totaled 13.6 million head on July 1, 2020, unchanged from the previous year. Cattle on feed in feedlots with capacity of 1,000 or more head accounted for 84.1% of the total cattle on feed on July 1, 2020, down slightly from the year before. The total calves under 500 pounds and other heifers and steers over 500 pounds (outside of feedlots), at 37.4 million head, up 1% from the 37.1 million head on July 1, 2019. Given that all figures closely align with the average estimates, this report shouldn’t gravely affect the market in the upcoming weeks. Calf Crop Down 1%: The 2020 calf crop in the United States is expected to be 35.8 million head, down 1% from last year. Calves born during the first half of 2020 are estimated 26.1 million head, down 1% from the first half of 2019. An additional 9.70 million calves are expected to be born during the second half of 2020. The actual numbers released were not far off from analysts estimates; thus, it should not have too much effect on the futures markets.