July 22, 2010

US pork stocks seen down in June

 

The US Cold Storage report on Thursday is expected to show total pork stocks at the end of June down from last year, but the supply could be little changed from the amount in storage at the end of May.

Projections for total pork stocks at the end of June ranged from 428.3 million lbs to about 450 million lbs. This compares with 448.3 million at the end of May and 577.9 million lbs in storage at the end of June last year.

Allendale Inc projected a 428 million lbs total pork stock level for the end of June. "Our estimate implies a 20-million-lbs decrease from the previous month when typically stocks decline by 33 million lbs," Allendale Inc said in a market report.

But another analyst was not as bullish on the total pork stocks and noted a slow down in demand during June.

Anaylysts are expecting stocks to be down somewhere around the low 20% level (from last year), which would be somewhere around 450 million lbs.

Allendale also put pork belly stocks at about 36.7 million lbs, down from 43.7 million at the end of May and 76.3 million lbs last year.