The kill was up slightly from last week but still below this time last year. Weights on live hogs are about even with last year

Hams were steady on Wednesday with limited availability. Bellies and trimmings were unchanged with limited trade. Loins were steady to higher at midweek and Butts were firmer. Spareribs are steady.

Suppliers are making money at these levels so kills should hold. The call for the market overall is steady to up through July 4^th and steady to weaker on some cuts after that. Frozen pork inventories are at their lowest levels since Dec. 2007 so which items fall should vary based on inventory positions.

 

Live cattle traded steady with last week. Live steer weights are up from last week but still below this time last year. Pundits had been predicting that live cattle would hit the low point for the year in August in the upper $80.00 cwt range but recently they have revised this and are calling for the low to come in late July.

A major supplier raised their price on strips, short loins, Ribeye and export ribs by $.10 a pound Wednesday afternoon reflecting a well sold position through the 4^th. Most middle meats will be firm through the 4^th reflecting increased retail demand. Grinds are steady but could see some upward spikes before the 4th, then level off quickly after the pipe line refills. Rounds are off overall but should stabilize over the next few weeks. Chucks should be steady with perhaps some weakness after the fourth. Briskets retained a well sold out front position.

Frozen beef inventories are at their lowest level since June 2005. Coupled with low frozen pork inventories this should work to keep pricing fairly stable even after the fourth. There may be some settling but not what we are accustomed to. The choice/select spread widened a little this week. Supplier margins, which had dwindled down to break even last week regained some of their strength this week. This should work to keep the kill steady.

 

The white sugar premium paid over raw sugar prices has hit a record high but should begin to ease as more raw sugar enters the market.  The sharp rise in the white sugar premium this year has been driven by a disconnect between the fall in the raw sugar futures market and domestic sugar markets, which have remained stubbornly high. While raw sugar prices have fallen in anticipation of a return to a small surplus in the 2010-11 season, white sugar prices have risen and remain firmly rooted in the present spot supply problems. The combination of the two has prompted the white premium to rise to record levels.  White sugar prices remain stubbornly high because refineries have run down their inventories as a result of a supply shortfall in 2009-10 and are struggling to meet demand.

Outside markets and good weather contributed to the continuing downward trend in soybean oil on Thursdays market.  Prospects for recently planted crops look good.   For short term, look for market to continue trending steady to slightly down.

 

Summer officially started this week and the heat has already started to effect the market.  Excessive hot and humid conditions in the south have hampered  live birds weights with average weights not meeting their targets.  This has caused most lines to be firm although demand is just average.  Some items are tighter than others, mostly in the front half of the bird, where white meat items are limited in supply.

WOGs and whole birds rated as full steady.    Whole breasts and breast fronts trade at market.  Boneless and tenders have seen increases this week and could continue based on  next week’s temperatures.     Cutlets well cleared.

Wings have tightened up and saw a slight increase at week’s end.  Dark meat is rated as about steady. 

 

 

Thru mid week this week the total area closed to fishing in the Gulf has remained pretty much the same.  On Thursday NOAA announced that it was opening another 8,000 square miles that had been previously closed.

Gulf Shrimp- Market remains firm.

Black Tiger Shrimp- Market remains firm.  Reports still show limited imports and delays in oversea shipments. 

White Shrimp- Market remains firm.  Larger sizes are still listed as tight.

Snow Crab- Market is firm.  Demand is listed as good.

King Crab- Market is firm.  Replacement inventory is listed as very limited.

Salmon- Market is steady.  Demand still appears to be soft.

Mahi- Market is steady.

Chilean Sea Bass- Market is listed as steady.  It was noted however that overseas pricing is firming and more product is moving in those directions.

 

 

Cheese- The cheese market moved upward slightly this week.  4^th of July promotional activity has helped to increase movement across the country.   Both production and inventories remain strong.

 

 

 

Butter-Butter markets are firm.  The market price continues to climb and cream inventories are getting tighter.  Reports point towards higher pricing not only for butter but also for fresh cream products.  Same week  inventories for the past 3 years are 129.9 million pounds for 2008, 98.4 million pounds for 2009, and 66.9 million lbs for 2010.  Inventories are down versus historical amounts.

 

 

 

 

Shell Eggs- Market is listed as steady.  The market leveled off this week after sliding downward for 3 straight weeks.  Inventory at the start of the week was up slightly as compared to the previous week.

Egg Products- Market is listed as steady.

 

Authentic skipjack tuna from third party audited sources are carrying prices for overseas arrival that are significantly higher  prices than the product that is already in the country. Tuna prices in the States have adjusted to much higher levels.  Other species of fish are being sold in the market with very attractive prices but the quality is not the same. Again this week and going forward vigilance in regards to quality standards should be considered.

 

It is very difficult to source product. The product is not readily available. El Niño is to blame for the small crop harvest in Thailand. It is expected to be the smallest harvest in 5 years. Summer is from May through July in Thailand and the harvests so far reported from the summer crop and the forecasts going forward from the Thai Food Processors Association are for greatly reduced crops. Higher temperature and lack of rain from El Niño is delaying the crop and is to blame for a 50% less crop for May and June versus last year. These delays further compound things as the rainy season will be delayed pushing back the November/December winter crop.

 

Domestic:

Apricots will be coming available within the next few weeks. Tomatoes are still in the air in terms of pricing. Peas, green beans, and corn are being harvested and processed now. Beets and potatoes are allocated or completely withdrawn with all canners.