Analysts still provide mixed forecasts on poly resins and foils.   Most foil producers experienced price increases during late October or early November.  While the demand for aluminum foil products is climbing very slowly, production still remains curtailed by all major sources, leading most to expect very little price change into early 2010.  Oil prices have bounced both up and down recently leading many analysts to expect little or no change for the next several months for prices on poly-ethylene products.   Pricing of LLDPE, which is a derivative of natural gas, is expected by many industry experts to drop sharply due to huge stockpiles of natural gas at major refineries.  These drops may be as large as 15-19% and may possibly be realized before year’s end.   LLDPE is primary used to manufacture trash can liners.

 

Soybean oil was strong yesterday, but looks to close down today - overall market strength - fund buying - steady energy markets - BUT when beans and meal started to fade - soy oil held firm. Seems funds are now more interested in oil after mainly focusing on beans of late.

 

Grain and oilseed futures at the ICE Canada futures market closed Thursday mixed. Canola was pressured down by weakness in the US soybean market and firmness in the Canadian dollar.

 

Chicago soybean markets were mixed during the week.  Soybeans were pressured down by the advancing harvest and favorable weather forecast through this week.  The loses came despite strong export demand, with China still a big buyer.

 

Corn markets were mixed early in the week. There was choppiness ahead of the Nov 10th USDA production and supply demand reports. Corn rallied and then fell back to modest gains later in the week. The improved harvesting weather weighed on prices. However giving some support was strong demand and concerns about the US corn crop quality.

US wheat futures also rallied and then fell back to just small gains. The market dropped back to almost unchanged on the week pressured down by sluggish demand, favorable weather to finish planting the US winter wheat crop, and the large global wheat supply.

 

 

Retail demand varies from region to region but is rated fairly good to good across the nation. Acquisition interest seems the best in the Southern portion of the country and weakest in the Northeast.

Certified product is sought for breaking stock above stated ranges. In the product segment demand is mixed. Noncertified liquid yolks were being acquired above current ranges at midweek. Certified liquid whites are drawing similar interest. European interest in the dried products is said to be increasing.

The Northeast Urner Barry for Thursday was at $1.27 per dozen on large and $1.08 on medium. Both were unchanged from the previous Thursday. The Northeast is lagging behind other parts of the country this week.

The market is steady to full steady.

 

 

Cash hogs were steady to weaker at midweek. Hams were unsettled and seeking direction on Wednesday morning. Bellies were steady to weaker on Wednesday. Trimmings were trading sideways. Loins and Butts continue to be increasingly available and are rated weak. Loins are thought to be at their low point and are projected to go up in December. Butts are projecting at $.80-$.85 in December. They were trading in the low $.70’s on trade Wednesday and there was a prompt offered at $.68. Spareribs continue to hold firm with good interest noted.

Packers were reporting a positive margin of $4.66 per head at midweek. Overall demand remains poor with the pre-Thanksgiving blahs being cited as the reason.

In an industry note the Coharie Hog farm in Clinton N.C. filed chapter 11 on 11-6. The overall effect on the supply of live hogs will be negligible according to the experts. Coharie was the 22^nd largest producer in the U.S.

 

 

End cuts are under some downwards pressure, showing lower on trade for Wednesday and featured on many prompts. Supply is said to be ample.  Ribs and Tenders are steady. Strips and loins finally appear to be firming up a little. Some feel that loins have seen the bottom. Grinds are steady.

Kills are down with demand reported to be poor. The pre-Thanksgiving blahs is evident in the beef world as well with supply outstripping demand. Packers were reporting a loss of $20.51 per head at midweek. Live cattle were bid at $85.00 cwt. as of Wednesday. Producers were asking $85-$87 cwt. The call is for live to trade steady to maybe slightly down this week. The choice/select spread was at $5.41 cwt. at midweek. Not much change overall.

 

 

 

The block opened at $1.57 on Monday and held straight through Wednesday. This is up $.0365 from last week’s closing average of $1.5335. From Monday through Wednesday 20 loads were traded on The C.M.E. (Chicago Mercantile Exchange). The barrel finally broke downward this week. It opened on Monday at $1.525, up $.0215 from last week’s closing average of $1.5035. This did not hold however and slipped to $1.505 on Tuesday which was a scant $.0015 above last week’s average, Wednesday it slipped again to $1.4625. This made the Monday through Wednesday average $1.4975 which was $.006 below last week’s closing average. The barrel appears to be conforming to one of the patterns that was predicted for it last week. Will it bounce back within two weeks or settle at a slightly lower level and stay there for a  while? This is the question now. We shall see.

Butter is moving up rapidly with high European prices fueling rumors of increased export demand coupled with domestic holiday demand. Butter opened at $1.525 and held steady through Wednesday. This was up a whopping $.092 from last week’s closing average of $1.433. Non Fat Dry Milk grade A opened at $1.37 and held steady through Wednesday. This was up $.013 from last week’s closing average of $1.357. Non Fat Dry Milk extra grade opened at $1.40 on Monday and held steady through Wednesday. This was $.02 above last week’s closing average of $1.38.

Thursday continued the same pattern with the barrel moving down to $1.435, down another $.0275. The block, butter, and NFDM all held from the previous day.

 

The undertone of the complex is rated steady or better, with some improvement, not due to demand back lack of supply.  This is contributed to the cutbacks in the last few months in preparation for this time of year. 

WOGs and whole bird inquiries have improved keeping this market steady.

Breasts and breast fronts are steadier as the market takes a slight increase.  Chunk meat and trim meat are sought after,  with inventory levels minimal if any at all.  Cutlets and tenders in balance, possible slight market increase.

Leg quarters are steadier with export business improving.   Dark meat, both boneless and bone in are in good shape.

No change in the wing situation, continue at full steady.

 

 

Whole birds continue at the forefront of the turkey complex.  Buyers looking for product for fill in business are paying up money as available product

Is minimal.  This also appears to be the case going into December as well, for both fresh and frozen product.

 

Institutional sized breasts are steady with expected seasonal demand movement.  Drums are steady.  Thigh meat trading at current market levels.  Whole wings possibly higher.  Tom two joint wings seeing some interest.  Frozen scapula is seeing minimal interest.

 

There are still concerns over this year’s crop of beets. Weather has not been helpful and it is looking more and more like this year will be a budget pack year for beets.

 

Still too early to say for sure. Potato packs, in some areas, have been pushed back in an attempt to get beets in the can.

 

Prices for the most part are still holding firm. There is no indication yet that demand has decreased to the point that pricing would come down.

 

It’s a buyer’s market for apples. While canners are not decreasing prices, canners from all growing regions are exploring promotions. This is stark contrast to last year’s allocations.