USDA's monthly Cold Storage report shows declining supplies of pork, chicken and beef, but a build-up in chicken leg quarters and paws reflects ongoing market problems with Russia and China.

The report showed total red meat supplies in freezers on February 28 were down 13% from last year, with frozen pork supplies down 17% and pork bellies down 27% from last year.

Total frozen poultry was down 13% from a year ago, with total supplies of chicken down 4% from last year and total pounds of turkey in freezers down 25%.

J.P. Morgan analyst Ken Goldman called the report "neutral to positive" for the protein industry, but noted leg quarter inventories were up 21% as Russia remains shut off, while chicken paw and feet inventories rose by 45%, "perhaps suggesting that the US is having more trouble shipping to China via the grey markets than believed."

Goldman added, however, "We believe total chicken inventory remains manageable. Any increases in demand should translate to higher prices."