Market

Market Conditions Report

Market Conditions Report: For the Week of September 23, 2018

There is heavy retail demand on beef and ads are featuring beef so there will be short term fluctuations.

Pork production remains above expectations and still remains a great value.

Poultry – Some production facilities closed due to Hurricane but will run extra days and hours in coming weeks to make up for shortfalls. Most affected is wings as per Patrick Gawel reports that came out several times we will keep you apprised of the situation as it develops.

Fish – Boats were at dock in several areas so there are certain items that will take some time to get back into production but will happen in a quick fashion as they return to sea with high demand items that will carry a short term higher value.

Shellfish – Previously announced tariffs will have a dramatic higher cost on already record price of pasteurized crab.

Shrimp remains a great value and should be featured on every menu.

Dairy – Short term interruptions from weather will quickly resolve itself as plants will run extra hours and days to make for lost time.

Wheat – United States exports will be larger than in years past short term effect on market.

Non- Foods – We expect to see more rounds of price increases into first quarter 2019 and then we will have a better idea of the new normal. Straws are going up and will go up again and again as they are out phased in several more cities and that is just the start of it. This is a good time to evaluate and take a deep dive on what items you are using and find alternatives and buy in early to hedge against impending increases.

Lastly – The Truck driver situation in the United States is here to stay for some time yet as all companies are experiencing shortages. This is not just food service this is every industry across the board.

 

Beef

  • Beef production was 652,000 up 15.8% from previous week and 0.7% higher than last year
  • Ribeye – Market is down 1.2% over last week and up 19.1% over last year
  • Tenders – Market is up 0.1% over last week and up 19.1% over last year
  • Strips – Market is up 2.0% over last week and up 12.8% over last year
  • Rounds – Market is down 2.9% over last week and down 1.0% over last year
  • Grinds – Market is down 6.6% over last week and down 0.1% over last year

Pork

  • Pork production was 2.3 Million up 4.5% over last week and down 5.9% over last year
  • Bacon – Market is up 10.3% from last week and down 11.0% from last year
  • Sausage – Market is up 7.4% from last week and down 18.7% from last year
  • Loins – Market is up 7.9% over last week and down 3.2% from last year
  • Butts – Market is up 2.5% from last week and up 3.9% from last year
  • Ribs – Market is down 1.6% from last week and down 1.8% from last year

Poultry

  • Poultry production was 149 million down 12.8% from last week and up 0.1% over last year.
  • Breast – Market is steady with last week and down 11.8% from last year
  • Wings – Market is up 2.1% over last week and down 32.4% from last year
  • Tenders – Market is steady with last week and up 27.0% over last year
  • Dark Meat – Market is steady with last week and down 27.0% from last year
  • Whole Chicken -Market is steady with last week and down 4.3% from last year

 Fish

  • Swordfish -Canadian cold water is stellar quality great item to feature
  • Tuna -Market steady on all grades
  • Halibut – Market is down this week short term
  • Cod – Steady
  • Haddock – Down slightly
  • Salmon Wild – Sockeye is even and supply is short as season is ending; Coho market steady; Kings market up across the board
  • Salmon Farmed – Market is steady from all producing countries
  • Cobia – Market steady
  • Barramundi – Market steady
  • Bronzino – Market steady

 Seafood

  • Lobster -Live market is steady cold and warm tails some short’s in previous weeks but we are now filling orders. Meat is high and unchanged
  • Shrimp – Overall the market is unchanged shrimp is a great value
  • Scallop -Supply is tight on U/10 and larger and price is up. 10/20 and down sizes are steady
  • Pasteurized Crab – The market is expected to rise as a result of tariff’s from the current record levels we see today may be welcome in the near future
  • Mussels – Supply is normal and market is steady
  • Oysters – Market is steady and supply is good
  • Clams – Production is getting back to normal after flooding from recent storms

Dairy

  • Dairy production is below expected levels due to temperature as well as the recent hurricane. This is expected to be short term and we will be back on track rather quickly
  • Milk/Cream – Expect to see a modest increase for October
  • Cheese – Market is holding steady
  • Butter – Overall market is steady but we are entering baking season and demand skyrockets so expect increases in coming weeks through Thanksgiving and Christmas / New Year’s season to show quick up and downturns.
  • Eggs – Market is steady and supply is in very good shape on all sizes

Wheat

  • As previously announced the thing that would affect the wheat market is exports. And the United States got the order for a considerable amount of a very large order from Saudi Arabia.
    This is due to the fact that Australia had had a freeze that will reduce the size of the anticipated crop. Also that Russia will ration exports for the same reason of lower than expected yield and lower quality. That being said it is too early to panic as our product in storage is above expectations and so is quality of United States produced product

Non-Foods

  • We are 10 days away from price increases on many non- food items. Previously announced increases that will take effect October 1 2018 are as follows
    • SCA / TORK – 5 to 8% increase on all paper products
    • Vollrath – 10 to 20% increase on stainless steel products
    • Pactiv – 8% increase on containers and packaging products
    • Fabrikal – All items 5 to 8% increase
    • Bunzl – Soufflé cups 10% increase
    • Bunzl – Straws 25% Increase