According to USDA’s monthly cold storage report released this week, stocks of pork and chicken are building. The findings are causing concern among analysts who see trade issues with Russia and Mexico figuring into the build-up, according to a Meatingplace.com report.
Frozen pork supplies were up 13 percent from the previous month but down 7 percent from last year. Stocks of pork bellies were up 382 percent from last month but down 37 percent from last year, USDA reported.
Ham stocks were up 16.2 percent from a year ago, which the Daily Livestock Report said was a result of the 5 percent tariff imposed by Mexico.
JP Morgan analyst Ken Goldman concurred. “The tariffs put on U.S. pork by Mexico in August seem to be having the intended effect. Mexico traditionally buys a large amount of hams from the U.S.; it is no coincidence, we believe, that the number of ham pounds in storage were up 16.2 percent year-on-year, the biggest jump since 2008,” he wrote.
Overall, Goldman called the report “negative for the protein industry.”
The full report can be accessed here.