A flurry of data on protein markets, showing a slip in cattle placements on feedlots and a tumble in chicken inventories, appear to indicate higher meat prices ahead – a factor reflected in futures prices.

Chicago's spot live cattle contract, for February, which set a record high in the last session, eased a touch on Monday on official data showing that feedlots took on more than 100,000 fewer cattle last month than in December 2010.

The reaction was viewed as "buy the rumour, sell the fact" selling after the data came in in line with expectations.

However, contracts for more distant delivery extended gains, on the prospect of last month's weaker placements meaning weaker supplies from next spring of live cattle – animals ready for slaughter.

And the market received some further support from separate US Department of Agriculture data showing beef inventories in cold storage as of the end of last month at 451.2m pounds, below the five-year average if up 1.4% higher than a year ago.

'Trend is still positive'

"The cattle trend is still positive and is expected to stay strong for 2012," US Commodities said.

A briefing from Paragon Economics and Steiner Consulting pointed in particular to a drop of 42% from November, to 56.3m pounds, in inventories of hams.

"The depletion of ham stocks was greater than the five-year average level and should be seen as generally positive for ham values and the pork market overall going into Easter," the consultancies said.

'Most bullish indicator'

However, the strongest reaction came to statistics on chicken stocks in cold storage which tumbled by 22% year on year to 629.1m pounds.

The fall in chicken stocks follows a drive by producers in the second half of 2011 to cut output, in response to tumbling prices.

Indeed, data earlier last week showed US hatcheries putting 6% fewer eggs on incubators that a year before, the latest in a series of similar data, and hinting at lower supplies of broiler chickens to come.

Neither chicken, nor poultry, are not quoted in Chicago. Shares in US chicken giant Pilgrim's Pride, which has been sent back into the red by the poor industry dynamics, edged 0.3% higher to $5.78 in New York on Monday, on a weak day for most shares.

'Supportive to prices'

Paragon Economics and Steiner Consulting added that the USDA protein data overall were "supportive" of meat prices "in the short-to-medium term".

US Commodities said: "The question is will consumers still pay higher prices?"