Market Updates for July 2, 2021
Dairy | Eggs
Large - Higher
Medium -No change
Small - No change
Retail demand mixed. Supplies of extra large and large well balanced and held confidently. Market steady to full steady.
Dairy | Butter
Cream inventories are continuing to tighten as ice cream production starts to compete for raw material and hits it's production stride. Retail sales show signs of decline, but overall are still healthy. With restaurants reopening food service distributors are still coming back to the buying table, but orders are still below expectations.
Dairy | Cheese
The CME Block market responded to the governments release of another billion dollars in the USDA Box program. Speculators feel this will have an effect on the markets for the short term but will not be sustainable for the long term.
Meat | Pork
The expectation is for the harvest to be less than 2.3 million hogs this week. Growers are asking up money and the packers are attempting to break the market by processing fewer animals as most cut prices have declined. With the holiday week upon us next week's kill is forecast to be 1.8 million, giving processors hope that cut prices could be higher next week.
Butt prices are lower this week ,few boneless butt availability issues have been reported and loin prices are steady.
Spare ribs are lower this week, with St Louis prices turning lower. Back ribs prices are stable to higher.
Bellies are declining again this week. Prices will decline next week with the possibility that a slight increase is coming with the shortened kill next week and possible shortages due to the holiday and labor issues.
Sausage trimmings are cheaper this week.
Meat | Beef
Harvest numbers are currently out-weighing demand, prices peaked on most cuts, and are trading down at this point. Grade has slipped and select is now showing up putting further pressure on select cuts. Expect the select/choice spread to continue to be wide until we see some better grading. Exports have slowed down slightly and imports are sluggish coming in. Logistical issues are part of the issue.
Middle meats such as ribeyes are trading lower, select much lower due to the grade slippage. Striploins are coming down from their peak pricing. They should start to gain traction again soon as retailers step back into the market. Tenderloins are slowly coming down but are still somewhat tight in the market. Expect to see a slow descend for the remainder of the summer. Briskets are coming off quickly as retail interest was lost with the recent high pricing. We should get into a price point over the next few weeks where retail will step in and steady pricing. End cuts should continue to hold steady to slightly lower. Thin meats such as skirts continue to show strength. Imported skirts are tight so expect increased demand on domestic products. Grinds have shown strength into the 4th of July holiday pull week. They are starting to come off at this point but expect to see price holding steady at higher levels than previous years.