Market Updates for September 9, 2022
Dairy | Eggs
Large - Up
Medium - Up
Small - Up
Retail demand fair to good. Supplies close to tight. Market firm.
Dairy | Butter
Tight Cream is slowing butter production in some markets across the county, as ice cream makers continue to pull strong to meet demands; butter sales are relatively stable but pricing remains elevated at this time.
Dairy | Cheese
Barrel - Up
Block - Up
The Block and Barrel Markets have shown some bearish moves these past weeks. Supply is currently plentiful and demand is not overcoming supply at this time. Speculators feel this is due to the rise in inflation pressuring consumers wallets and minimizing sales.
Grocery & Bakery | Frying Oil
SBO markets are experiencing a sell-off this week, driven by lower palm oil prices and a seemingly, slowing global economy. China has been relatively quiet in the export arena and the US crops seem to be in line to meet trend yields. Farmers are now getting into the fields and should begin reporting early findings soon. Further price deterioration will occur should performance be better than expected.
Things to watch for in the coming weeks.
* Global economic slowdowns impacting demand: Bearish
* Initial yield findings: Either direction
* Renewable diesel plants stepping into extended SBO positions as the futures decline: Bullish
* Early frost prior to harvest completion: Bullish
Grocery & Bakery | Sugar
Harvest has begun on beet crops in some regions while some of the latest planting regions wait another week or so in order to allow beets to grow larger and deposit more sugar as we have seen ideal growing conditions as of late for the crop. While the crop is looking good, due to the deficit in supply this year, we are looking at a tight supply in the new year and elevated spot pricing to remain in place at least for the rest of this calendar year. As our supply slowly comes back into the pipeline across the entire mix of products, we should expect some higher pricing in the coming months.
Grocery & Bakery | Flour
Wheat prices as a whole remain a bit of a roller coaster as tighter winter wheat supplies due to a poor crop have lead to higher pricing there while spring wheat crops have produced good yields to date, softening the pricing there. The market continues to ebb and flow with corn and soybeans pricing driving the wheat market up and down as well as a higher US dollar making US wheat a last resort for importers to source. There continues to be more upside risk than downside risk on the market.