Market Updates for June 10, 2022

Section Type

Dairy | Eggs

Large - Down

Medium - Down

Small - Down

 

Retail demand improved some. Supplies in better balance. Market attempting to test.

 

 

 

 

 

 

 

 

 

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.

 

 

Grocery & Bakery | Sugar

Beet sugar remains unavailable on the market for the rest of this calendar year beyond what we have secured for regular usage. There may be an opening to buy for 2023 needs in late August as the recently planted crop is harvested but tat this time, beet sugar is not being traded. As a result, sugar cane pricing continues to rise slightly every couple of weeks as supply of that is now tight with many suppliers not trading at this time until they see how crops perform. 

Grocery & Bakery | Flour

Pricing has seen some relief in the last week to 10 days but has started to rise slightly again as talks of a safe zone in the Black Sea and in Ukraine ports have stalled somewhat which has dampened the hope for more supply in the world market. While pricing is not as extreme as it was 3-4 weeks ago, we are starting to slowly creep back up to the levels we saw 5-6 weeks ago. Winter wheat crop ratings are just under 30% good to excellent condition, about 20 points below the same time last year. Spring wheat planting improved to 73% completed to date which is still behind the average of 92% at this time but significantly higher than the 49% the week previous. The US continues to keep pricing higher in order to limit exports which has worked to date with little international interest in US wheat at these prices. We continue to watch for rain in some of the dry central plains region as we need some moisture to help crop conditions improve. 

Meat | Pork

Pork harvest is excepted to be close to 2.5 million head this week.  

Buyers are starting to focus on Lent. With less focus on pork.  prices could decline. Large decreases are not forecast.  

Bone in Butt prices are increasing however the upward pace is slowing. Boneless Butts prices are close to last week's and starting to stabilize. Boneless loin prices have stabilized.  

Belly prices continues higher as retailers are aggressively filling the shelves and food service demand is picking up.  

Spares, St Louis and back rib prices are firm. 

 

 

 

 

 

Meat | Beef

Cattle harvest is holding steady at inflated levels from previous years. Ranchers and feeders are both in a position where moving cattle quickly is the top priority. The continuation of drought conditions has forced cattle off pasture and onto feedlots. Feedlots are forcing cattle to harvest due to high feed costs. Much anticipated tight cattle supplies in the fourth quarter are still in the forecast as the herd is thin out front based on light placements in previous months and herd reduction over the past year. Beef demand has slowed as consumer spending has shifted to other basic necessities.  

Spring grilling season came and went in a flash and took the wind out of the sails. We have seen a majority of items soften over the past month as consumer confidence has been low and there's less disposable income circulating. Ribeyes, strips, and tenderloins took a small run with good forward sales going into Memorial Day but quickly softened with consumer demand for higher-end middle meats backing off. End cuts are mostly flat with forward sales mostly in line with the current market. The end cuts are primarily being supported by high ground beef costs. Thin means such as skirt meat are steady to higher due to seasonal demand. Grinds have seen good demand and are now moving slightly lower post-Memorial Day. Grinds are being supported by high-priced 90% and 50% trim levels. The main driver is the reduced supply of imported boneless beef used for ground beef.