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Market Updates: December 9, 2016

Market Updates

Center of the Plate

Beef

The pace of holiday buying of ribs and tenders is winding down as the last of holiday needs are shipped. Both ribs and tenders are likely to adjust back to more normal price levels starting next week. Strips have been pursued for features, but pricing seems to be topping out. Ground beef and round cuts continue to be pushy.

 

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

Down

Up

Down

Up

Up

Flat

Up

Up

Next Week’s Projections

Flat

Flat

Down

Down

Flat

Flat

Down

Flat

Pork

Recent retail features at jaw-dropping low prices have steadied out the price of pork loins. Hams remain strong, but processor demand should ease now that holiday orders are filled. Ham prices should adjust lower. Belly (bacon) prices have been mostly sideways, but could move lower in the slow-demand weeks around the holidays.

Pricing Trend

Butts

Hams

Spareribs

Loins

Bacon

Current Week

Flat

Up

Flat

Up

Flat

Next Week’s Projections

Flat

Down

Flat

Flat

Down

Chicken

Breast meat prices are steady, but tender prices are struggling. Buyers are negotiating lower prices for both tenders and thigh meat going into freezer programs. Wings are steady.

Pricing Trend

Jumbo BNLS/SKNLS Breast

Clipped Tenderloins

BNLS/SKNLS Thigh Meat

Jumbo Wings

Medium Wings

Current Week

Flat

Down

Down

Flat

Flat

Next Week’s Projections

Flat

Down

Down

Flat

Flat

Turkey

Markets are adjusting lower following Thanksgiving.

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

Snow Crab

The snow crab market is trading at very high levels. There is very limited supply on all sizes and more so on the smaller 5-8 oz size. We do not expect any relief on cost possibly until the new season in the spring. Canadian inventory is low. Alaskan inventory is low to non-existent (Alaskan quota has been cut by as much as 50%). Russian inventory is low. 

Squid-Loligo

The global production of of Loligo squid species continued to be significantly below normal throughout 2016. Production in major areas such as China and India were most noticeably decreased, with production in some areas lower by up to 70% from 2014 levels. This decrease in availability has caused a shortage of raw material in areas which typically are major suppliers to the the U.S. cleaned squid market, and prices for imported cleaned loligo products have generally increased on a steady basis since August. The trend of strong prices and limited supply is expected to continue until the next season in south China, starting August 2017. 

Squid-Todarodes

Todarodes squid landings and pricing showed a similar trend in 2016 as Loligo. The catch was reduced and compared to 2015, and prices for raw materials doubled. Similar price increases were seen for finished goods. The next season, and opportunity for prices to return to towards the levels of previous years, is June 2017.

Dairy

Dairy Category

Last Week

Current Week

Block Cheese

Down

Down

Barrel Cheese

Down

Down

Butter

Up

Down

Large Eggs

Up

Up

Medium Eggs

Flat

Up

Small Eggs

Flat

Up

Cheese

The CME Block and Barrel markets have been retracting over the past week. There is still an untraditional separation between the two markets that will be corrected at some point. Speculators feel that this market will stay bearish in the short term.

Eggs

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

Butter

Butter is in strong demand and caught many off guard which drove pricing up on the spot markets, but inventory remains high and above last year. What is keeping pricing up is many feel they missed the lower pricing and are now working to lock in loads for the first half of the year. Expectations are that inventories will remain at or above prior year and pricing will stay in the neighborhood it is now for the first quarter.

Grocery & Bakery

Wheat

Millers are keeping a watchful eye on protein premiums as concerns about the availability of high quality wheat continue.

Pricing Trend

High-Gluten Flour

Semolina Pasta Flour

Current Week

Flat

Flat

Next Week’s Projections

Flat

Flat

Soybeans

Prices have leveled off as weather in South America remains beneficial to their soybean crop.

Pricing Trend

Soybean Oil

Current Week

Up

Next Week’s Projections

Flat

Sugar

Sugar prices are firm at most plants.