Market Updates for November 16, 2018

Section Type

Dairy | Cheese

The CME Barrel market has found some strength as of late moving closer to the Block market. Speculators feel there is currently some weakness in the market and large gains are not in the short term forecast. The supply over demand environment will keep both markets in check over the coming weeks.  

Last week:

Block - Down

Barrel - Up

This Week:

Block - Down

Barrel - Up

Dairy | Eggs

Retail demand fairly good to good. Supplies well balanced to close. Market steady to full steady.

Last week:

Large - Up

Medium - Up

Small - No Change

This Week:

Large - Up

Medium - Up

Small - Up

Dairy | Butter

Butter production has increased over the past few weeks to meet current needs and fulfill Holiday needs while maintaining inventory levels. Overall spot pricing is flat and futures are steady with expectations that pricing is going to decrease for remainder of the year. 

Last week:

Butter - Down

This Week:

Butter - Down

Grocery & Bakery | Wheat

Abundant supply of high quality wheat has pressured cash prices lower. Until exports pick up cash wheat prices will remain soft.

Grocery & Bakery | Soybean Oil

Soybean oil prices below the low end of the USDA's $0.28-$0.32/lb range. Falling crude oil prices have pressured bio-diesel and soybean oil values.

Grocery & Bakery | Sugar

Harvest is virtually complete. Pricing has been flat for both beet and cane sugar.

Meat | Beef

Packers pulled contract cattle to keep from bidding prices up. Overall beef prices are slipping so packers may reduce production to give them support.

Ground Beef:

Prices have stalled out as we move into turkey time.

Ribs:

Ribeye prices are acting toppy; we may be at the seasonal high.

Briskets:

Brisket prices are steady on good retail and club store demand.

Rounds:

Round prices are headed south as retail attention switches to Thanksgiving.

Strips:

Packers have strips and short loins on their "push list" this week. Prices often make their seasonal low in November.

Tenders:

Tender prices may also be at a plateau; prices are above 2017 peaks.

Thin Meats:

Prices for most thin meats are weaker as we enter a slow demand time of the year.

Meat | Pork

With this week's production on pace to be 6% higher than last year a pork landslide has buried most prices.

Butts:

Butt prices are close to previous 2018 lows. Extra production should move into freezer programs or exports,

Hams:

Ham prices have are also near 2018 lows, another good candidate for freezer programs.

Bacon/Bellies:

Belly prices are now close to normal for this time of year, but they are still too pricey to put into the freezer.

Ribs:

Rib prices are where they were last year. Demand for freezer programs is good.

Loins:

​Loin prices are at a 5-year low as packers struggle to keep product moving during Thanksgiving.

Poultry | Chicken

WOG sales are gathering steam as we approach the holiday shopping season -- rotisserie chicken for on-the-go meals.

Breast and Tenders:

Most breast meat items are sort of steady with the usual level of discounting. Food service demand for tenders used in boneless wings is good.

Wings:

Jumbo and medium wing prices are still discounted to keep extra production moving,

Dark Meat:

Export demand for leg quarters has improved with fresh sales to Mexico especially brisk. Thighs meat is in balance and seems to be finding good demand.

Poultry | Turkey

Frozen whole turkey prices are flat. The USDA reports Thanksgiving features are much more widespread than last year, which could reduce inventories.