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
http://tonto.eia.doe.gov/dnav/pet/pet_pri_gnd_dcus_r30_w.htm
Market Report- January 29, 2010
January 31st, 2010
Sugar
Amid the skyrocketing sugar prices today, the projected extreme bad weather conditions this year is expected to further take a toll on the country's declining cane output. Besides the expected bad weather conditions like El Nino, La Nina or flash floods, also expected is the diversion of cane from sugar millers to ethanol production which will affect the tight sugar supply in the domestic market. From 2008 until last year, the sugar industry warned that it has already experienced a significant reduction in its production compared with the previous years. National production has dropped 25 percent in metric tons cane milled and 15 percent in sugar produced.
Grain/Corn/Soybeans
Grain futures were lower on the Chicago Board of Trade this week as the dollar rose against the euro and the yen and equity markets made modest gains. Corn was off 4 to off 4 1/4, soybeans were off 18 to off 18 1/2, wheat was off 10 to off 10 1/2 and oats were off 3 to off 3 1/4. Corn futures fell as the dollar index rose 0.33 percent this week. Wheat prices fell with a general selloff as Egypt said it would buy 180,000 metric tons from Russia. Soybeans prices lost ground with beneficial rain expected in soybean areas of Brazil and Argentina.
Corn and soybean futures in Chicago generally saw small losses during the week. The bearish mood prompted by the earlier USDA report continued to weigh on values. Also undermining the corn and soybeans market was a firmer US dollar and the move by the US president to limit the ability of the banks to participate in the markets with some of their hedge fund instruments. Soybeans did receive support from concerns about dryness for the Argentine soybean crop and fairly strong exports, with China a continued good buyer despite the moves by the Chinese government to dampen inflationary pressure. Corn futures were pressured by the sluggish export pace, the larger corn supplies in the US and bearish technical signals. However, slower farmer selling and ideas that the market was due for a technical rebound limited the losses.
US wheat futures saw modest declines in all 3 wheat futures markets. The large global and US wheat supplies and bearish technical signals accounted for much of the pressure. The move by the US government to limit US bank participation in some of the hedge funds also accounted for downward pressure. However, ideas the market had become oversold and needed a technical correction higher and increased export demand did help to limit declines amid a lack of any really fresh news.
Grain and oilseed prices at the ICE Canada futures market closed earlier this week mixed with canola higher. Canola was supported by steady demand, as exports continue to equal last year even without Chinese demand. There has been some slow down in crusher buying though. Slower farmer selling and the weaker Canadian dollar also gave some support. The market ignored weakness in the US soy complex. Commercials dominated the activity. Losses in corn weighed on the market, but the main problem seems to be a lack of interest and liquidity in the market.
Canned Goods:
Vegetables
It has been a fairly quiet but interesting week in canned goods. The supply pressure that we expected on beets is already beginning with allocations being put into place. Pricing should be less of an issue as securing the product will be the main focus. Prices of course should be higher. Potatoes are still a concern with a good chance of allocations coming soon. There are some good opportunities on carrots as that product’s supply is turning out to be better than originally thought.
Fruit
The wait and see game that we’ve been playing with tomatoes is becoming a little clearer as there has been some softening of prices. Canners from all regions seem to have adequate supplies and deals are available. Apples are still experiencing a complete reversal from last year with excellent supply against a slightly slower than expected demand. Pricing is remaining constant but with deals to be made. There are some good opportunities on peaches and cherries.
Imports
Tuna and pineapple are still the main points of interest. Prices are expected to be higher from the source and that will translate all the way through the channel. Mushrooms are still fairly uncertain for long term prospects.
Shell Eggs
Retail demand has definitely slowed down. Supplies are now adequate. Foodservice demand is on par with historical trends for this time of year.
Certified eggs are being obtained for breaking stock at the low end of currently stated ranges. The product segment is quiet.
The Northeast Urner Barry for Thursday was unchanged from the previous.
The market is steady and quiet.
Pork
Live hog prices are up nearly $10 per hundred weight since the beginning of the month. Hog slaughter is running about 20,000 head per day behind last year’s average daily kills and slightly behind the five year average. This has resulted in higher pricing which has begun to thwart demand. With the reduced demand we should see packers offering lower bids for live hogs in the weeks ahead. Seasonal items such as trimmings, bellies and loins remain strong with some weakness in hams and tenderloins. Light Spareribs should remain scarce for the time being. Medium Spareribs should come down some. Butts dropped off on the trade levels Wednesday due to weak demand. Packer margins were reported at a positive $8.12 per head on Wednesday. This was down from around $15.00 per head earlier in the week.
Beef
Demand is fair at best as is typical for late January. Cattle owners are asking $.87- $88.00 per cwt. for the live animal. Bids were not forthcoming as of Wednesday. The call is for the live to settle steady to $1.00 cwt. down from last week. Last week the live established trade at $84.00 to $86.00 cwt.
Sellers have indicated that chuck rolls, insides and peeled knuckles were moved at discount to spark interest. Middle Meats were steady at midweek but with softer undertones. Strip loins were having to be discounted to keep inventory moving. Thin Meats such as outside skirts, ball tips and tri tips are strong for now and sellers have advanced prices here. There are some prompts out there on grinds well off the trades. The trade levels on Wednesday showed 3 packers reducing pricing and two holding even. Today’s prompt may be tomorrows trade level watch for down side potential here.
The choice/select spread has shrunk to $3.50 cwt. Packers were reporting a margin of $22.00 per head as of Wednesday. Still positive but down from what we have been seeing.
Packers are projecting the best year for exports since 2003. BSE has depressed exports ever since then. Once again the dollar has regained some of its strength in relation to foreign currencies and this could work to dampen these expectations.
Dairy
The barrel opened at $1.5050 on Monday, moved up to $1.515 on Tuesday and held there on Wednesday. The Monday through Wednesday average was at $1.5117 which was $.0454 below last week’s closing average of $1.4663. The barrel opened at $1.5150 on Monday then fell to $1.505 on Tuesday and held there on Wednesday. The Monday through Wednesday average was at $1.5083 which was up $.017 from last week’s closing average of $1.4913. The block/barrel spread which had been inverted reestablished itself this week. As of Wednesday the Monday through Wednesday averages showed the barrel being $.0034 lower than the block. The butter market opened at $1.4350, fell to $1.42 on Tuesday and slipped to $1.38 on Wednesday. The Monday through Wednesday average was at $1.4117 which was $.0727 below last week’s closing average of $1.4844. Non Fat Dry Milk grade A opened at $1.25 dropped to $1.22 on Tuesday and $1.20 on Wednesday. The Monday through Wednesday average was $1.2233 which was $.0767 below last week’s closing average of $1.30. Non Fat Dry Milk extra grade opened at $1.30 on Monday and fell to $1.24 on Tuesday and held their on Wednesday.
The Monday through Wednesday average was at $1.26 which was off $.04 from last week’s closing price off $1.30.
Chicken
Activity this week has been mostly light with majority of movement just fair. Majority of buying has been on a as needed basis.
WOGs and whole birds have eased up some with lower levels seen this week. This trend could also go into next week.
Boneless has seen additional interest and movement with volume reported going into next week.
Dark meat such as drums, thighs and thigh meat are steady.
Wings have seen some downward pressure, even with Super Bowl right around the corner, but is viewed as mostly market adjustment from the record highs the last few months.
.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
| 
