Market Updates for May 27, 2022
Dairy | Eggs
Large - Down
Medium - Down
Small -No change
Retail demand seasonally average, fully adequate to at times available, market continues to test
Dairy | Butter
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 - Down
Block - Down
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.
Grocery & Bakery | Frying Oil
The soybean oil futures have weakened over the past ten days. Now keep in mind prices were record high before this dip, so we aren't exactly talking about oil now trading at "hot deals." Global stocks are still projected extremely tight, which isn't something that changes quickly. Something to watch for is the resurgence of the infamous Fuel vs Food debate. With many countries around the globe mandating corn and soy use for biofuels, the argument of scaling back the process of burning our food during an historical period of food inflation has never been louder.
- Strong crude oil amid US comments of banning exports for protectionist reasons.
- Continued strength in veg oil demand.
- Lack of canola oil forcing end users to switch to soy oil.
- Brazilian agreement to sell corn to China is driving US corn futures lower.
- Palm oil prices declining after surging to record-highs with the Indonesian export ban now lifted.
- Funds' profit-taking underway with a lack of fresh news to support higher prices.
Grocery & Bakery | Sugar
While we have secured our supply needs, the market is tight with limited product available for this calendar year. Pricing saw another jump as a result of the market tightness even after the USDA increased the amount of raw sugar that could imported for refining. Cane prices are up another $0.02 per pound FOB, not even factoring in added freight costs. World sugar markets continue to be very tight and reactive to any slight challenge presented whether it is frost in Brazil or an increase in ethanol production in Brazil taking away sugar production.
Grocery & Bakery | Flour
Wheat prices continue to see some of the highest pricing in years as crop conditions for winter wheat are dry and spring planting has been delayed by weather. After touching some extreme highs, prices have dropped a bit in the last couple of days but concerns remain regarding the crop conditions in both the US and Europe as well as India's export ban which was helping cover some shortages caused by the war in the Ukraine.