Beef supplies at the end of August totaled 429.2 million pounds, up from 387.4 million pounds on the same date a year earlier and up 3.4 percent from 415.2 million pounds a month earlier, the USDA said.
The increase reflects seasonal factors, as retailers and restaurants build supplies in preparation for stronger demand over the year-end holidays, Meyer and Steiner said. While beef inventories should continue to increase into the fourth quarter, “current stocks are far from burdensome,” the analysts said.
U.S. chicken supplies at the end of August totaled 702.2 million pounds, down 0.5 percent from a month earlier and down 7.3 percent from a year earlier. The poultry industry’s recent production cuts “appear to be having an effect,” Meyer and Steiner said.