September 24 2009

US pork supply reached record high in August partially due to a slowdown in exports, while chicken supply decreased on the continuing exports despite China and Russia might slow or stop purchases, analysts said on Tuesday (Sept 22).

 

A US Agriculture Department report on Tuesday showed US warehouses held 517.9 million lbs of frozen pork on August 31, exceeding last year's August record of 502.7 million lbs. It was the fourth consecutive monthly record for pork stocks.

 

While August's pork supplies were record large, the numbers were less than trade forecasts, said Rich Nelson, analyst with Allendale Inc.

 

Pork stocks fell about 22 million lbs in August from July, much steeper than the typical monthly decline of four million lbs, analysts said.

 

There had been worries that slow pork exports would have resulted in even larger warehouse supplies.

 

Pork exports have slowed due to the global recession, AH1N1, and importing countries building up their own hog and pork supplies.

 

Year-to-date US pork exports are down 10 percent, according to the US Meat Export Federation.

 

The USDA on Tuesday (Sept 22) reported 642.25 million lbs of chicken were in storage at the end of August, down six percent from July and down 15 percent from a year earlier.

 

There had been talk that China was buying less US chicken in reaction to Washington putting tariffs on imported Chinese tires and its efforts to prevent importing processed Chinese chicken.

 

The decline in chicken also was attributed to US chicken companies reducing production in 2009 after struggling in 2008 and early 2009 with high feed and fuel costs and low chicken prices.