Retail demand remains weak. Wholesale transactions on both white and brown eggs are at discount to existing quotations. The supply side is still dominating the economic equation.  

In the egg product area, liquid and frozen whole egg and yolk are under pressure. The dried egg segment is running slightly higher in response to increasing inquiries.

The market is weak.

 

The live market is flat with spurred interest for late week delivery.  Hams are steady with weaker undertones. Ribs are steady with some unexpected quick ship opportunities surfacing. Bone in loins are steady with retail demand and boneless loins are steady with export demand propping up the market. Bellies are strong with limited supply. Trimmings are very firm with supply being tight and seasonal demand being high. Butts are under pressure. Suppliers are reporting a $7.00 per head margin at these levels.

High pricing has blunted demand but lower supplies have created a steady albeit high market for now.  

 

Live cattle traded at 98.00 cwt., down $.50-$1.00 per cwt. from last week. The market is high but steady. Lower supply + lower imports+ higher exports+ higher pork pricing = higher beef prices overall. Middle Meats hit some resistance in price early this week and there was some scattered discounting to move inventory. End cuts continue strong clearly quickly with export demand helping out. Ground beef continues strong. Fresh 50 trimmings hit an all time high on Tuesday April 27^th of $1.03 per pound.  Suppliers continue to ask higher prices as they are confident of their inventory positions. Briskets on the other hand continue to fall after reaching historic highs in late winter and early spring. After reaching 1.88 lb. of 2/26/2010 the brisket has worked its way down to the mid $1.50’s range. The question now, is where is the bottom ?

The choice/select spread is at $2.92 cwt. Suppliers are reporting a hefty $56.65 per head margin at these levels. The market is mirroring pork, steady but only due to high prices.

 

The block was up $.0095 per pound comparing the Monday through Wednesday average to last week’s closing average. The barrel mirrored this with the Monday through Wednesday average being up $.0128 per pound form last week’s closing average. Butter was up $.0067 comparing the Monday through Wednesday average to the last week’s closing average. Non Fat Dry milk grade A was up  $.004 per pound comparing the Monday through Wednesday average to last week’s closing average. Non Fat Dry Milk extra grade was steady with last week’s closing average comparing the same time frame.

 

The slight increase in the cheese markets may indicate that we have rebounded off the  bottom.  This week’s trades on the CME spot market were way off compared to last week. Buyers are resisting the advances and appear to be positioned to do so from last week’s purchases. If the demand pressure has moved the market down to what fundamentals will support this will probably have little effect. If not we will see who flinches first.

 

Very limited trading and activity was seen in the markets earlier in the week.   Interest picked up some as we approached midweek.  Beef and pork prices have helped put more focus and demand on chicken items for both the retail and foodservice segments.    This coupled with first of the month and Mother’s Day fast approaching contributed to the increased demand. WOGs and whole birds have remained steady this week.  Most trading reported at market and maintaining good support.  Breasts and breast fronts are tight.  These markets may continue at full steady for now.  Tenders have seen slight increase at week’s end.  Cutlets trading at full marker or better. Wings appear to  have leveled out this week.  Inventories are more in balance then in past weeks and feeling less pressure.

Dark meat overall is in good shape and trades at market.    All dark meat items rated as steady.

 

CBOT soybean futures are higher, continuing to draw support from outside markets and underlying fundamentals. A weaker U.S dollar, sharply higher crude oil futures and fresh export demand from China serve as catalysts to underpin prices.  Spillover support from continued price strength in corn futures added to the upward tone in the market as well.   Nearby soymeal is lower on adjustments in spreads with front months under pressure from fears of potential deliveries. July soybeans are 4 1/2 cents higher at $9.98, July soyoil is 0.28 cent higher at 39.20 cents per pound, and July soymeal is 30 cents lower at $289.10 per short ton.

 

Soyoil is down slightly this week, driven by continued influence from outside markets.  The export sales of soybean oil provided a fresh dose of enthusiasm to buyers, because China's purchase was a signal that U.S. exports remain a viable option at a time when analysts expect foreign importers to turn their attention to South American supplies of soybean oil.  Expect this market to remain choppy with no real appreciable change, up or down.

 

In the world of canned vegetables, beets and potatoes are still in high demand but in extremely short supply. Some relief for the short supply situation on potatoes could be seen next month with a limited spring pack but these are usually not large enough to fully satisfy needs. Large scale production isn’t due until October and the last three years have produced very small packs. Corn seems to be the vegetable with the most inventory across canners. So far no product is expected to have a large carryover as demand and supply are pretty well balanced. For long term prospects vegetable planting is underway and weather so far has been cooperating.

 

Canned fruits for the long term are having weather issues in California and it is the opposite of the last four or five years. Rain has been falling in California tomato growing country and there is a possibility that it could have an adverse effect on the crop in terms of fungus and a delayed crop harvest.  Tomatoes are still in the planting stage and it is still way too early to tell. For the short term tomatoes that are in the can are plentiful and there are no shortages being reported. Peaches and pears are beginning to see some restrictions on some styles but in general terms supply and demand is apparently well balanced.

 

Imports are still experiencing the most volatility in terms of price. Short harvests of items like olives and pineapple are applying pressure. Replacement costs are expected to be higher than current prices. While there are many factors that dictate the price of imports, demand continues to be the primary influencer of price. Quality standards should be constantly monitored as the price may to be good to be true.