Market Updates: January 20, 2017
Center of the Plate
There was some plant downtime early this week in the wake of widespread ice storms/power outages throughout the country's midsection. You wouldn't know that supply had been interrupted, however, by looking at beef prices. The market has been flat with most items readily available. Packers are losing money, so we will continue to see plant downtime until beef prices firm.
Ice storms in the midwest resulted in power outages and plant shutdowns. At the same time, it was hard for farmers to move hogs to market. Most plants are back in production mid-week, but hog availability remains limited. Butt prices continue to slide as limited buying fails to clean up available supplies. Export demand continues to support ham prices. Production downtime has made bacon very tight with prices trending up.Pork
Sports season has increased demand for wings, prices have edged higher. Seasonal demand for boneless wings is also pulling tender prices higher. Jumbo breast and thigh meat are still readily available.
Turkey processors have held pricing steady for whole turkeys, but retailers continue to be slow to commit on freezer inventory builds. Bone-in breast meat is thinly traded, so there could be one or two more downward price ticks.
The Block and Barrel Markets continue to be at an unhistorical separation. Speculators feel the markets have been moving in an understandable range of values and will continue to be volatile within that range.
Processed eggs are fully available. Within shell eggs, retail demand from fair to fairly good. Supplies well balanced and held confidently. Market steady to full steady.
Butter production remains strong and producers are working to increase inventory into cold storage; futures are pointing to higher pricing throughout the year on butter despite calls at pricing and overall average dropping slightly.
Grocery & Bakery
Protein premiums for milling grade high protein wheat have adjusted up again; pizza flour prices are 10% higher than last year. Pasta prices were flat.
Favorable weather is supporting expectations for a large South American soybean crop. Concerns have shifted to flooding in South America, causing prices to consolidate around the middle of the USDA $.34 - $0.37/lb forecast range.
Many beet sugar suppliers are well-sold for 2017 and are holding prices firm. Cane sugar is trading in a range. Refiners with domestic supply are selling in the middle of the range; suppliers who rely on imports are at the upper end of pricing.
Full Market Report
For the detailed market report this week, download a printable PDF.