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Market Updates: December 23, 2016

Market Updates

Center of the Plate

Beef

Ribs and tenders are available for discounts after the holiday, following a typical seasonal pattern. Chucks and inside rounds are well-cleared, with prices trending higher. Flats are tight. Ground beef prices have jumped 20% but may be running out of steam.

Pricing Trend

Ground Beef 81%

Brisket CHC & SEL

Inside Round CHC & SEL

Ribeye CHC & SEL

Strips CHC & SEL

Ball Tips CHC & SEL

Tenders CHC & SEL

Flank Steak CHC & SEL

Current Week

Up

Up

Up

Down

Up

Up

Down

Flat

Next Week’s Projections

Flat

Up

Up

Down

Up

Up

Down

Flat

Pork

Interest in hams is starting to wind down as we get close to Christmas. Bellies and trim are offered at up money, with a lot of product already pre-booked for freezer inventory programs. Ribs, loins and butts are well-cleared as buyers try to line up product for the two short holiday weeks.

Pricing Trend

Butts

Hams

Spareribs

Loins

Bacon

Current Week

Up

Down

Up

Up

Up

Next Week’s Projections

Up

Down

Up

Up

Up

Chicken

Breast meat and tenders have both found price levels that are attracting buying for freezer programs. Holiday restaurant demand is supporting thigh meat now that it is a cheaper than breast meat. Wings are balanced but available.

Pricing Trend

Jumbo BNLS/SKNLS Breast

Clipped Tenderloins

BNLS/SKNLS Thigh Meat

Jumbo Wings

Medium Wings

Current Week

Flat

Flat

Flat

Flat

Flat

Next Week’s Projections

Flat

Flat

Flat

Flat

Flat

Turkey

There appears to be more whole turkeys than were needed for Christmas. Prices will probably trend lower.

Pricing Trend

UB Hens, East, 12 lb. Frozen

UB Toms, East, 22 lb. Frozen

UB Turkey Breast, East, 8-10 lb.

Current Week

Down

Down

Down

Next Week’s Projections

Down

Down

Down

Dairy

Dairy Category

Last Week

Current Week

Block Cheese

Down

Up

Barrel Cheese

Up

Down

Butter

Down

Up

Large Eggs

Up

Up

Medium Eggs

Up

Flat

Small Eggs

Up

Flat

Cheese

The Block and Barrel market has been on a bearish move in the past week. Speculators feel the volatility should subside between now and new year’s due to the holidays. The block and barrel spread has once again moved to an untraditional spread. This will be looked at correcting by the traders in the coming weeks.

Eggs

Processed eggs are fully available. Within shell eggs, retail demand is good to very good. Supplies of larger eggs are close and the market is steady. As such, the strong retail and seasonal demand coupled with tight supply drove markets up steeply last week from long-standing lows

Butter

Butter production is active as many are finishing up production to meet year end holiday demand. Production for October was down 3.6% from same period in 2015 but year-to-date production is plus 4% from year to date 2015. Expectations are that butter pricing through 2017 will be near of at where it sits now in the spot markets. 

Grocery & Bakery

Wheat

Protein premiums continue to edge higher as elevators ask more for high quality wheat. Bulk pizza flour prices are now 10% higher than last year despite overall wheat prices being lower. The supply of high protein wheat appears limited. Semolina prices drifted lower and are now below 2015 levels.

Pricing Trend

High-Gluten Flour

Semolina Pasta Flour

Current Week

Up

Down

Next Week’s Projections

Flat

Flat

Soybean Oil

The USDA raised their 2017 price range for soybean oil by 2 cents/lb. in their latest forecast. Prices have consolidated around the middle of the USDA $0.35 - $0.38/lb. forecast range.

Pricing Trend

Soybean Oil

Current Week

Flat

Next Week’s Projections

Flat

Sugar

Many beet sugar suppliers are well-sold for 2017 and are holding prices firm. Cane sugar is trading in a range. Refiners with domestic supply are selling in the middle of the range; suppliers who rely on imports are at the upper end of pricing.

Pricing Trend

Sugar

Current Week

Flat

Next Week’s Projections

Flat