Corn futures rose slightly as traders said the positive influence of the U.S. Department of Agriculture supply and demand continued into a second day. Wheat futures dropped, although deteriorating weather conditions offered some price support. Soybean prices were mixed with the dollar trading higher and crude oil prices down around 10 percent from a week ago.

 

Crude palm oil futures on Malaysia's derivatives exchange fell to a three-week low Thursday, with investors liquidating longs due to a likely recovery in May CPO output and lower crude oil and soyoil futures.

 

Domestic demand for soybean oil has remained weak this week, outside markets are more or less unchanged, South American exports continue to be slow and nothing new to report on the biodiesel subsidy in Washington.  All these factors are contributing to the lack of movement in the market.  Market is holding steady this week and no real movement is expected for the short term.

Actual hog slaughter under federal inspection continues to run behind last year’s numbers with weekly kills running around two million head per week.  Primal butts and picnics are showing slight increases for the week with primal ribs and hams showing slight declines. Primal bellies and 14-16# seedless bellies have increased $30 per hundred weight in the past three weeks which has greatly affected bacon prices across the board.

 

                          

 

Some suppliers are holding inventory on butts and spareribs but trade levels remain steady.  Trim supplies are thinning down which should work to bolster this market and directly impact processed items such as wieners and sausage. Suppliers are reporting a profit which should mean no production cuts for now. We are seeing a temporary lull . The market should firm again as retail demand improves in anticipation of Memorial Day.

 

Live cattle traded up a dollar or two this week from last week. Middle Meats are seeing declines. Ribs, strips, short loins and top butts are adequate in supply and are seen on prompts. End cuts and chucks are firm with retail and export business supporting the market. Grinds are showing strong demand and tight supply. A lot of briskets moved out on forward buy this week which should work to release some of the backup. We should be at or near the bottom here. The suppliers are making money so production should hold.

 

All eyes are on the oil spill in the Gulf of Mexico and the impact that it is having on that region.  The short term impact on the supply chain has caused prices to move higher.

Gulf Oysters-Pricing has increased as the supply continues to shrink.  As of Wednesday 11 zones had been closed to oyster harvesting which represents over 1/3 of Louisiana’s harvesting area.

White Shrimp-The market has firmed.  Supplies of Asian product is limited putting increased pressure on pricing.

Snow Crab- The market remains unchanged.  Demand is listed as moderate.

Salmon-Demand has decreased from last week putting less pressure on the market.  Demand is listed as fair while supplies have improved to adequate.

Tilapia-Demand is listed as fair while supply is listed as good.

Grouper- Demand is down and pricing pressures eased earlier in the week.

Mahi- Demand is listed as soft.

Pollock-Demand is listed as increasing and pricing is noted as firming.

 

Shell Eggs- Retail demand is increasing while foodservice demand is listed as above seasonal expectations.  The market is listed as steady.

Liquid Eggs- The USDA reported that production is up 5% vs last week on liquid whole while yolks and whites are down over 6%.  This is causing pricing to remain firm.

Markets remained steady throughout this week.  Trading has been both light and some days even quiet.  This is the case across most lines for the exception of WOGs and whole birds, which have seen market increases the first few days of this week.   This is due to both retail and foodservice ads and promotions.  These markets have settled some as we come to weeks’  end.

Whole breasts and breast fronts  are steady and continue to trade at market.  Cutlets are steady with some suppliers possibly needing to move some product verses others.   Tenders are being pursued more with current inventory levels able to support.  Chunk and trim meat are holding steady.

Trading on dark meat is light this week.  Drums and thighs appear to be an attractive line for retailers who are looking for promotion items that are more cost-effective for the consumer.

Wings continue to see market improvement with the market downturns we’ve seen recently.  Wings trade at or close to market.

 

Cheese- Inventories are starting to build in most parts of the country as milk flow reaches its seasonal peak levels.  Inventory is better vs same time last year and some producers have started diverting milk to other products when possible.  Demand is listed as fair.  Both the Block and Barrel market pricing are trending higher than same time last year but still well below 2008 levels.

 

Butter-  Retail demand is steady while foodservice orders are strong.  Overall demand is listed as fair while pricing remains steady.  Churning is active across the country.  Pricing trends show this market trending above same time pricing for the past few years.  Pricing is expected to stay firm thru Memorial Week.

Prices this week have continued to hold steady. With planting under way and harvest beginning about a month from now on many items, we should begin to get a clearer picture of short term pricing in the next few weeks. Canners haven’t expressed an urgency to move inventory in substantial numbers yet some have been able offer a few nice incentives. It is too early in the process for large discounting and many canners have previously stated that they didn’t expect large discounts due to the balanced inventories.  Weather is the major factor to watch for in the next few weeks to months.