This afternoon's Cold Storage Report will get a bearish read by the market, as it showed total pork and beef stocks above traders' expectations and above month-ago and year-ago levels.
Total pork stocks in frozen storage at the end of November at 494.88 million lbs. came in around 24 million lbs. above the average trade guess. Stocks are up one percentage point from the previous month and six percentage points higher than year-ago. While strong movement was seen in hams -- down 30 percentage points from the previous month -- the net movement on nearly all other cuts was up substantially.
Total beef stocks in frozen storage at the end of November came in at 437.6 million lbs., about 21.5 million lbs. above the average trade guess. Stocks are up six percentage points from last month and one percentage point higher than year-ago levels.
Meanwhile, total frozen poultry stocks at the end of November were down 23 percentage points from the previous month and down nine percentage points from year-ago.
The report should weigh on lean hog futures tomorrow morning, but it could turn out to be a volatile day of trade is the Hogs & Pigs Report provides any surprises, as it will be released during trading hours tomorrow.
Link to report