Market Updates for June 3, 2022

Section Type

Dairy | Eggs

Large - Down

Medium - Down

Small -No change

 

Retail demand mixed. Supplies readily available. Market soft and under pressure.

 

 

 

 

 

 

 

 

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 - 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

Planting progress for corn and soybeans are near the normal levels, which is helping chip away at futures. There is still considerable moisture in the northern Midwest region which could lead to more acres shifting to prevent planting. Global balances being what they are, we could certainly use all the production we can get from this crop. Other oils like sunflower, corn and canola are extremely hard to come by. Sunflower has been non-existent since the Russian invasion, corn oil has been snatched up by chip manufacturers attempting to safeguard their ingredients, and canola oil is under duress due to the floods in Manitoba which has forced a major supplier to declare force majeure. Soy oil is the likely sub option for anyone who is willing to trade down, which is why prices should remain well supported through the summer months.

Grocery & Bakery | Sugar

Beet sugar remains unavailable for the current crop year while planting for the fall harvest is about 75% complete. Due to the shortage of beet sugar, cane sugar prices continue to rise slightly over the last few weeks as that is all that is available though in small quantities. Pricing for the 2022/2023 crop is elevated as well with no immediate signs of relief as yields are expected to be lower on beet sugar with cane sugar keeping a strong premium over the beet sugar.

Grocery & Bakery | Flour

After peaking on May 17, pricing has fallen back some in the last 10-15 days though still quite elevated compared to normal. All signs are pointing to pricing remaining significantly higher than usual as the current good to excellent ratings on winter wheat are 29% and some areas are still planting spring wheat as a result of cold and wet conditions.