You are here

Market Updates: January 13, 2017

Market Updates

Center of the Plate

Beef

Cattle supplies are getting tighter, the result of smaller placements last year. Packers have been forced to pay more for cattle, bidding prices up to $1.20/lb vs $1.00 last October. Meanwhile, post holiday beef demand is slow with the prices of most cuts trending lower. Packer margins are now under pressure, pushed to near breakeven by the combination of higher cattle cost and lower beef prices. Look for packers to reduce production to support beef prices.

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

Down

Down

Down

Flat

Flat

Down

Up

Next Week’s Projections

Down

Flat

Flat

Down

Flat

Flat

Flat

Flat

Pork

Pork prices held up surprisingly well despite 5% more production in Q4. Export numbers released earlier this week help explain why -- November pork exports were up 18% to a new record 500 million pounds. This export volume is over 25% of the pork produced in the month and could explain why prices of the most popular export items, hams and butts, were so firm. Pork prices have adjusted lower following the holidays, but are mostly above year-ago levels.

Pricing Trend

Butts

Hams

Spareribs

Loins

Bacon

Current Week

Down

Down

Up

Flat

Up

Next Week’s Projections

Down

Flat

Flat

Flat

Up

Chicken

Sports season has increased demand for wings, prices have edged higher. Demand for smaller-sixed breast meat and tenders has also been good. Jumbo breast and thigh meat are still pushy.

Pricing Trend

Jumbo BNLS/SKNLS Breast

Clipped Tenderloins

BNLS/SKNLS Thigh Meat

Jumbo Wings

Medium Wings

Current Week

Flat

Up

Down

Up

Up

Next Week’s Projections

Flat

up

Down

Flat

Flat

Turkey

Turkey processors continue to accept lower prices for whole turkeys, with retailers slow to commit on freezer inventory builds. Bone-in breast meat still looks a little pricey, so there could be one or two more downward price ticks.

Pricing Trend

UB Hens, East, 12 lb. Frozen

UB Toms, East, 22 lb. Frozen

UB Turkey Breast, East, 8-10 lb.

Current Week

Flat

Flat

Down

Next Week’s Projections

Down

Down

Flat

Dairy

Dairy Category

Last Week

Current Week

Block Cheese

Down

Up

Barrel Cheese

Up

Up

Butter

Down

Up

Large Eggs

Down

Up

Medium Eggs

Down

Up

Small Eggs

Down

Up

Cheese

The CME Block and Barrel Markets were a bit bullish in the past trades moving the market on an upward trend.  Speculators feel this will soon turn to a bearish market and having the block market move towards the barrel market as they are at an untraditional spread.

Eggs

Processed eggs are fully available. Within shell eggs, retail demand from fair to fairly good.  Supplies are held confidently and the market is steady to full steady.

Butter

Butter production remains strong and producers are working to increase inventory into cold storage. Futures are pointing to higher pricing throughout the year on butter despite calls at pricing and overall average dropping slightly. 

Grocery & Bakery

Wheat

Protein premiums for milling grade high protein wheat have adjusted up again; pizza flour prices are 10% higher than last year. Pasta prices were flat.

Pricing Trend

High-Gluten Flour

Semolina Pasta Flour

Current Week

Up

Flat

Next Week’s Projections

Flat

Up

Soybean Oil

Favorable weather is supporting expectations for a large South American soybean crop. Prices have consolidated around the middle of the USDA $.34 - $0.37/lb forecast range.      

Pricing Trend

Soybean Oil

Current Week

Up

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