Listed below are several industry Websites
that provide valuable market related information that will help
you stay abreast of ever-changing market conditions in the foodservice
industry.
http://www.ams.usda.gov/
http://www.foodservicedairy.com
http://www.cme.com/wrappedpages/misc/cheese.html
http://www.foodservice.com/
http://www.catfishnews.com/markets.htm
Market Report- November 14, 2008
November 17th, 2008
PORK
While last week the hog slaughter took a slight increase, it has reversed and dropped to 2.307 million head versus last week at 2.386 million head. The number last year for the same period was 2.360 million head which makes the trend just about equal. This is a 2.25% decrease which is significant as there has not been a drop this large this year.
The total kill number has hovered around 2.3 million head for the past 9 weeks which is equal to last year.
The average weight last week was 271.7 lbs, up almost 4 pounds, but less than last year’s 270.7 for the same period.
A negative trend continues with the price falling to $38.86 cwt from $41.60 cwt the week before. Last year the price was $35.41 cwt. Looking at last year, the price dropped for two more weeks and then began an upward trend.
The fall continues on the 14/16 belly market to $.6840 from $.7140 last week which equates to a 7.56% decrease. The price last year was $.7400. As a side note, last year the market price bottomed out this week and begin an upward trend.
CHICKEN
Demand patterns are seasonal and typical of this time of year. Reports of shorter kill weeks, lower egg sets and chick placements is what most processors need to get themselves back in line. Export markets continue to struggle and demand minimal. This continues to put pressure on dark meat, as these items struggle to find a bottom. Drums, thighs, legs have seen market declines the past few weeks.
WOGs and whole birds are in balance with pricing levels inching higher. Jumbo tenders are steady, with interest showing a slight increase. Breasts and breast fronts are moving well, mostly into Canada. Cutlets are about steady, also with increased interest. Wings are full steady.
TURKEY
With the turkey complex in holiday mode, most activity is in whole birds. Fresh supplies are at levels that fall below levels earlier in the year. Frozen birds are mostly steady. Consumer breasts are steady to barely steady, with December levels possibly lower. Drums are steady. Thigh meat is flat. Tom two joints are struggling to find a buyer. Tails possibly lower.
EGGS
Retail demand, though below holiday expectations, is improving. Food service demand is well below holiday levels. Wholesale trades are across the board with some supporting existing quotations and some at discounts.
Sellers are negotiating prices to keep inventory moving through the product segment. Breaking stock is also selling at reduced prices.
Supplies are adequate. The market is steady.
BEEF
Several plants were closed for Veterans day. Kills are about 14,000 head behind last week. Combine this with low inventories due to “hand to mouth buying patterns” and you have the basis for an upswing in the market. Owners are asking $95-$96 cwt for live cattle. Bids of $.92 cwt. were unmatched as of Wednesday. Last week the live traded between $90 cwt and $94 cwt.
The choice to select ratio has is up to $.10. This is much better that it was but still below the $.14 spread we usually see this time of year.
The packers finally cleared into the black. They are making about $6.00 per head after weeks of red ink. Flats and Knuckles are being sought. PSMO tenders and Ribs have continue upward. Please watch the availability on grinds as the packers reduce the kill. We’ve seen some cuts. Top Butts have moved up slightly. The market is firming quickly.
DAIRY
The block moved up this week posting a $1.7056 for the Monday through Thursday’s average, up $.0881 from last week’s average of $1.6175. The barrel moved up also but not as much. The Monday through Thursday’s average was at $1.6738 which was up $.0273 from last week’s average of $1.6465.
The butter market held steady at $1.6350 from Monday through Thursday. This was down $.013 from last week’s average of $1.6480.
Non Fat Dry Milk was at $.9281 for the Monday through Thursday’s average for both Grade A and Extra Grade. This was down $.0381 from last week’s average of $.96 for both grades.
COFFEE
The financial crisis appears to have repercussions on the international coffee market with prices declining by over 17 per cent in the last two months, according to latest reports. The current financial crisis has contributed to the widespread liquidation of financial securities, including contracts in commodities futures markets, leading to marked downward corrections to their value. Coffee prices fell sharply during the month of October in the context of the financial crisis, which seems to be exerting downward pressures on virtually all commodity prices.
Despite the absence of significant changes in coffee market fundamentals, coffee prices fell significantly during October, a month that marks the beginning of the 2008/09 crop year in many exporting countries. The fall in prices cannot be attributed to changes in the supply and demand balance.
Prices touched the lowest level in 14 months. Prices fell by 14.5 per cent to 108.31 US cents per lb in October from 126.69 US cents per lb in previous month. One lb is equal to 450 grams. Price volatility has increased slightly since September, particularly in the case of Robusta, which recorded sharpest fall in prices for the four groups of coffee.
The international futures prices have declined to 81.49 cents per lb in October from 97.50 cents per lb in September. The meltdown effect was seen on price movement and volatility of coffee rates. Domestically, volatility grew marginally since September and future prices on the exchange have slipped to 121.11 cents per lb in the last month from 140.72 cents per lb in September, when the financial crisis began to show the ripple effect on all markets. The total global coffee exports also fell by 3.4 per cent to 94.5 million bags during the crop year 2007-08, against 97.9 million bags in a year-ago period.
TOMATOES
More allocations on whole peeled announced this week. Both growing regions packs are drastically under demand.
POTATOES
Like tomatoes whole white potatoes are scarce. No canner has reported a budget pack.
CARROTS
Carrots are coming in now and weather is a factor. Expectations are for less than budget pack.
IMPORTS
As usual the dollar is the driving factor. The strength of the dollar and falling fuel prices are helping to counteract the rising effects of tin-plate can costs and raw material costs.
PASTA
Pasta should be coming down but maybe not as fast as we’d like. While futures prices are down product sold today was made yesterday. That means that costing is based off of the higher prices. Durum wheat, the kind used in pasta, is not experiencing the drastic falls that other varieties are seeing none-the-less it is still coming down.
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