Live prices were down from last week although they are still up significantly from this last year at this time.  Futures are trending upward.

 

Hams values were a little weaker at midweek. Sharp declines were noted on bellies but the call is that they will settle out and remain steady into July. Fat trimmings were unchanged but lean trimmings were firm. Loins are steady with some weaker offers from suppliers with surplus quantities. They should move up into the fourth. Butts have shown renewed interest and should move up into the 4^th. Cushion meat should follow Butts.  Ribs are steady for now but should follow butts soon in the climb towards the 4^th of July.

 

Suppliers are still in the black at these levels so kills should hold.

 

Live cattle prices were down from last week but are still well above what we saw this time last year. Futures which had been slipping are showing a little strength now.

Grinds appeared on prompts this week and values are down temporarily. This should evaporate quickly as we move into July. Knuckle and rounds traded slightly lower at midweek. Knuckles should hold steady the rest of the month. Insides should move downward some as we approach the end of June. Chucks are steady. Brisket are well sold out front although steady right now they should move up some as we approach July. Ribs are holding but should start up as we approach the 4^th. Loins were thought to be at the bottom but they have continued to weaken. The call is that these will move up with the approaching holiday as well.

The % of kill grading choice came off a little more. The packers are still making money at these levels aided by higher drop credits than last year. Production should hold.

 

 

NOAA is now updating the fishing closure in the Gulf on an almost daily basis.  As of June 3 the closure area now covers just over 37% of the Gulf.  This equates to an area the size of Georgia and South Carolina combined.

Gulf Shrimp- Market is firm.  Inventories are listed as tight.

Black Tiger Shrimp-Market is firm.

White Shrimp- Market is firm.  Inventories are listed as tight.

Snow Crab- Market is listed as steady.

Salmon- Market is listed as firm. 

Tilapia- Market is listed as steady.

Mahi- Market is listed as firm.

Sea Bass- Market is firm.  Inventory is tight.

Whiting- Market is firm.  Replacement inventory is listed as poor availability.

Grouper- Market is listed as steady.  Recent demand has been listed as weak.

 

Schools are letting out across the country and overall demand has softened.

Cheese Block Market- The market has softened this week.  The market appears to be keeping pace with past seasonal trends. 

 

 

 

Cheese Barrel Market-As with the Block market this market has softened since last week.  Seasonal trends point towards some stability for the next few weeks.

 

 

Butter- The butter market is listed as steady.  It has softened slightly from the high of just a few weeks ago.  Reports reflect that the market has softened as demand started to soften as the price reached its peak.  Seasonal trends point towards pricing moving higher as we move later into the year.

 

 

 

Shell Eggs- Market is listed as steady.  Retail demand is listed as mixed and promotional activity is light.  Foodservice demand is still listed as above expectations.  Total inventories were listed as up 8% versus last week.

 

Egg Products- Market is listed as steady.

 

 

 

Business this week has been slow with not much trading going on.  Demand has been just fair.  Suppliers who ran production on Monday seem to,  or appear to have  additional inventory to sell, which in some cases have had to offer discounts to move inventory.  

 

WOGs and whole birds have seen some discounting this week in an attempt to help move product.  Breasts are well supported and continue to move some volume into Canada.  Breast fronts have seen a slight decline this week.  Cutlets and tenders have both seen markets dip as well to entice some movement.

 

Dark meat is steady with movement just fair.  Trading has been reported at current market levels.   Wings are under some pressure with discounting

Reported as well.

 

 

 

 Flour

Wheat futures traded lower this week than they have in the past two months.  There is some concern about wheat crops in Canada due to a lot of rain, and in Europe and Russia because of dryness.   Spring wheat conditions in the United States look good so far according to the U.S.D.A., which rated the crop in the six key states at 85 percent good to excellent and 15 percent fair.  Spring wheat planting is on par with the average of the past five years at 91 percent completed thus far.  Basis premiums for high protein spring wheat leveled off this week.

 

Soybean oil has been holding steady this week, with outside markets being stable and not affecting the direction of oil as in past weeks.  Fundamentals remain unchanged and world vegetable oil market remains in balance.

 

 

Palm market continued to trade sideways, some buying from Pakistan and India kept market supported but China continued to disappoint although some light enquiries for July shipment were heard.  

Peaches are nearing harvest and so far so good. The cooler wetter weather that has been occurring in the California growing region is slowing the development of the peach but at this point there is no cause for concern. As warmer weather comes into the region a correction should occur.  

 

Reports from California are that farmers are reducing the size of this year’s crop plantings. According to the California Farm Bureau Federation, farmers intend to cut plantings by 6% from last year. Last year was a top five all time crop year from all growing regions and supply of canned tomatoes have been more than abundant.  Weather going forward will be the primary focus.