Cold Storage Report signals sizzling beef demand

Frozen beef stocks dropped 4.3% during June whereas they typically hold near steady for the period.

“Food inflation has definitely started to slow down, and this is good news for consumers. However, it still won’t be cheaper to celebrate the Fourth of July this year,” says Dr. Michael Swanson, Wells Fargo Chief Agricultural Economist.
“Food inflation has definitely started to slow down, and this is good news for consumers. However, it still won’t be cheaper to celebrate the Fourth of July this year,” says Dr. Michael Swanson, Wells Fargo Chief Agricultural Economist.
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There were 398.66 million lbs. of beef in cold storage around the U.S. as of June 30, which was an 18.02-million-lb. (4.3%) retreat for the month versus the usual 400,000-lb. increase for the period, USDA’s monthly Cold Storage Report showed. Frozen beef stocks were also 30.64 million lbs. (7.1%) lighter than year-ago. The data signals strong domestic and export demand as the world emerges from a year-long pandemic.

Pork stocks dropped 20.30 million lbs. (4.4%) from May 31 to the end of June, which was a bit lighter drawdown than the usual 27.60-million-lb. slide in stocks for the timeframe. But overall stocks are also 3.9% tighter than year’s 460.17 million pounds.

June 30 poultry stocks of 1.15 billion lbs. were up 2.1% for the month but down 15.0% from last year. Chicken breast meat stocks ended June at 195.13 million lbs., which was 4.5% under May 31 levels and 9.2% lighter than last year’s record.