GREEN BEANS – pack in process below slightly behind
budget, quality excellent –market steady
WAX BEANS – projected at full budget-market steady
CORN – pack starting next week, excellent growing
conditions but wet spring will cause longer harvest time in fields- market
steady
LIMA BEANS – planting complete with concerns for crop
due to wet- market firm
BEETS – Crop looks good with slightly below pack
estimates- market firm
CARROTS – excellent crop with budget pack- market
steady
POTATOES – Wet conditions have triggered “late
blight”, crop is precarious- market tight
John Hawkins, Category Manager, ext. 5425
Pork:
Live hog prices were up from last week and are projecting
steady to slightly higher next week. Hog supply will be tight until late
September. The heat is affecting how hogs are moving as well as their
weights.
Fresh pork supplies are snug overall due to lower
production. This is holding the market firm despite lack luster demand. The
pork cutout hit its highest level since June 1 on Wednesday of this week.
Hams are steady. Trimmings are holding firm. Bellies showed
the lowest storage inventories seen since 1994 this week. They are firm now but
are projected to be up through August. Butts should be up next week, then
steady for a couple of weeks. At some point butts should begin to move up into
Labor day. Bone in loins are steady and should hold there well into
August. Boneless loins are steady but may move upward as we hit the middle of
August. Bone in sirloin is steady and should hold there until late August.
Spareribs are steady for now but should steady out in August. Cushion should
hold steady.
Suppliers margin per head is still in the black but eroded a
little from last week.
Beef:
Suppliers margin per head slipped into the red this week for
the first time in quite a while. This could lead to reduced production if this
doesn’t reverse itself soon. If this occurs the market will firm rapidly.
The demand for grinds has finally cooled off and supplies
are listed as adequate. Some discounting from quick ship has been noted. This
isn’t expected to hold as grinds are projected to start rising as we move into
Labor day. Ribs and peeled tenders are seeing some negative pressure as well.
Loins and strips are short and holding firm. Rounds are still holding steady
but we could see some erosion unless production is curtailed. The chuck complex
is steady overall. Briskets are projecting to come off next week, hold steady
for a couple of weeks then move up in late August. On the whole the prompt
lists appeared to be growing on Thursday.
Live cattle traded up a little this week from the previous
week in the north, on Thursday. The call is for the trade to establish at
steady to slightly lower levels this week. Futures were a little off from last
week , as well.
In the export market, drought in Russia will reduce the
grain harvest and will affect meat production. This could open the potential
for export demand in the U.S.
Basically we saw some cracks in the firming
trend this week. All these projections are based on steady production. All bets
are off if they cut the kill so watch for this.
Davy Ard, Senior Category Manager, ext. 5431
Seafood
News on the Gulf- On Friday July 23rd NOAA
updated the area closed to fishing in the Gulf. The area of Federal
Waters now closed to fishing is 57,539 square miles. The area closed is
now over 31% smaller than the week before. It has not been this size
since the week of May 25th. The area closed now represents an
area just smaller than the state of Florida.
Gulf Shrimp- Market is steady. Demand is listed as
weak.
Black Tiger Shrimp- Market is steady. Inventory is
listed as improved but supplies are still listed as tighter than normal.
White Shrimp- Market is steady. Demand on
smaller sizes is listed as weak while the larger sizes are still listed in good
demand.
Snow Crab- Market is firm. Inventories are listed as
tight.
King Crab- Market is firm. Inventories are listed as
tight while demand continues to be good. Replacement inventories are
listed as limited.
Salmon- The overall market is listed as steady. The
exception would be Wild Kings that have supplies listed as very short for a
good demand.
Snapper- Market is listed as firming. There are some reports
of higher replacement costs.
Tilapia- Market is steady. The exception would be
3-5oz fillets from China that are listed as firm because of higher replacement
costs.
Oysters- Market is firm. There are reports that meat
yields per oyster are at an all time low.
Flounder- Market is firm.
Cod- Market is firm. Reports show higher replacement
costs.
Halibut- Market is firm.
Dairy
Cheese- Market is firm. Even though total
inventories are at record amounts, the heat continues to drag down milk production
and milk fat/protein levels. This is decreasing the total amount of new
cheese that is available. Total cheese inventories for June were listed
as up 4% from previous year.
Butter- Market is
firm. Cream supplies remain tight and the hot weather continues to hamper
the ability to replenish inventories. Reports show that the higher
pricing is causing retail demand to begin to slow. There is still concern
on inventories that will be available for later this year. June
inventories are reported to be down almost 25% from same time last year.
Eggs
Shell Eggs- Market is steady. Retail demand is listed
as good. Inventories are listed as up 1% from same time previous
week. Smaller sizes appear to be in better supply than the large.
It was reported that the heat this week has had some impact to overall
production.
Egg Products- Market is steady. Reports
show that frozen whole egg is trending higher.
Sharon Bosley, Senior Category Manager, ext. 5457
Soybean Oil
Soybean oil futures are firm at midday,
sustaining 1-week highs on strength of outside markets and uncertainty
associated with new crop soybeans. The strength of outside markets remains the
catalysts behind broad based advances in oilseed futures. Soybean oil is
garnering fundamental support from crop uncertainty ahead of the critical
August crop development phase and solid underlying demand. Soy product
futures are higher following soybeans, with soyoil attracting additional
support from crude oil
price strength.
Flour
Wheat futures have risen once again, climbing since midweek
last week to their highest levels since last June. After a brief decline,
basis levels on high protein spring wheat moved higher this past week.
Continued worries about the depleted Russian wheat crop, along with the
potential of larger U.S. exports, have driven up wheat futures in both European
and U.S. markets. The outlook for the wheat crop in the U.S. is much
better with estimated yields at or above last year’s levels.
According to the USDA, the condition of the spring wheat crop domestically is
considered “outstanding” and rated at “82% good to excellent.”
Laura Kelly, Category Manager, ext. 5438
Chicken
First of the week, business and activity lacked any real
interest. As this week comes to a close, activity has picked up some as
buyers plan for first of the month business.
Processors in the south continue to deal with lower birds weights as the
heat has yet to let up. With Russia opening up their export business to
the US, these items have taken on renewed interest and activity.
WOGs and whole birds have continued to remain steady after
the recent downturn we saw last week. Boneless and tenders are steady,
but have tightened slightly as this week closes. Breast fronts and
whole breasts are just basic.
Wings are steady and trade at current market levels.
Dark meat items are the hot items
currently. Legs and leg quarters advance as export contracts are
negotiated. Thigh meat and leg meat have become steadier with suppliers
holding firm to markets levels.
Turkey
The markets are pretty much the same as in the last week or
two. Institutional sized breasts A Grade are short of full needs, with
some sizes nonexistent. Values trend higher. However, under
grades appear to be more available based on supplier. Tenders are also
tight, and have been reported as trading at premiums.
Whole bird hens remain very tight. Toms have loosened
up slightly in select sizes for delivery time frames of August through
September.
Frozen drums are about steady, fresh product is
a little more active. Whole wings are steady to full steady. Thigh
meat about steady.
**Graphs represent data for the week ending July 23, 2010.**
