Market Updates for May 20, 2022

Section Type

Dairy | Eggs

Large - Down

Medium - Down

Small -Down

 

Retail demand mixed. Supplies long. Market weak.

 

 

 

 

 

 

Dairy | Butter

Butter- Up

 

Inventories are tight on butter and it continues to remain elevated with expectation of only temporary relief scattered throughout the year, many see any dip an opportunity to buy thus driving markets higher. 

Dairy | Cheese

Barrel - Up

Block - Up

The CME block and barrel markets have continued moving higher again lately.  Speculators feel this is still due to strong US exports, weak international supply, and continued strong domestic demand.  The traders have continued uncertainty which is adding pressure to the upside."

 

 

Dairy | Eggs

Large - Down

Medium - Down

Small -No change

 

Retail demand sluggish. Supplies ample. Market weak.

 

 

 

 

 

 

 

Dairy | Butter

Butter- Up

 

Inventories are tight on butter and it continues to remain elevated with expectation of only temporary relief scattered throughout the year, many see any dip an opportunity to buy thus driving markets higher. 

Dairy | Cheese

Barrel - Up

Block - Up

The CME Block market looks to have found a comfortable range.  Speculators feel this will be around in the short term but relief should persist through the summer.

 

 

Dairy | Eggs

Large - Down

Medium - Down

Small -Down

 

Retail demand mixed. Supplies long. Market weak.

 

 

 

 

 

 

Dairy | Butter

Butter- Up

 

Butter pricing is inching higher as pull continues from seasonal business and foodservice sectors while retail seems to be slowing a bit;  manufactures are working to build inventory now for the fall pull.  Expectations are for pricing to stay in current range for the coming weeks.

 

Dairy | Cheese

Barrel - Up

Block - Up

The CME block and barrel markets have continued moving higher again lately.  Speculators feel this is still due to strong US exports, weak international supply, and continued strong domestic demand.  The traders have continued uncertainty which is adding pressure to the upside."

 

 

Grocery & Bakery | Sugar

Not much change recently as beet sugar is pretty well sold for this crop year  with no more product available to be purchased until October which has driven up cane sugar pricing as the only alternative. Beet plantings being delayed in some regions will limit the early harvest in hopes of starting to pull October product in late August or September. We will continue to see high prices through the end of this crop year (end of September) and into the early part of the new crop. 

Grocery & Bakery | Flour

High pricing continues to be the trend as we saw prices jump up higher after the crop reports last week. Last week's crop reports continued to re-enforce the poor crop we are seeing for hard winter wheat especially which is showing its smallest crop since 1963 and the delays in spring wheat planting due to cold and wet conditions. Until we see crop ratings improve significantly or a resolution to the Russian-Ukraine conflict, prices will remain high to support human consumption rather than being used for animal feed. World crop conditions are also starting to see a decline as droughts have hit parts of India causing them to stop exporting which is further depleting supply.

Grocery & Bakery | Frying Oil

The Bulls

- Corn more favorable to soybeans and could lead to less acreage shifting to soy this planting season.

- Crude oil prices still topping $100+ per barrel. 

- Veg oil demand in the U.S. is very strong.

- Canola oil prices firm after Bunge declared temporary force majeure due to flooding challenges.

The Bears

- Indonesia announced removal of the export ban on palm oil, scheduled for May 23.

- Last week's USDA WASDE report kept soybean ending stocks slightly higher than trade expectations.

 

Overall tone of the market: Flat, with a bias toward slightly firm. The Indonesian export ban being lifted will provide a short-term dip. But demand is too strong and continues to justify higher prices.