Market Conditions Report: For the Week of June 25, 2017
Beef production last week was at 628,000 head and expect that number in range of 625,000 head this week. Average weights are up 9 pounds from previous week but 17 pounds below last year’s average. Select grade on all items is in very tight supply.
Ribeye – Market is steady.
Tenders – No change in markets.
Strips – Steady, at value point.
Top rounds – Steady to up, heavy retail demand.
Grinds – Holding steady. Holiday orders are in inventories.
Pork production levels are on the same pace as the previous week and the outlook is same for the near term.
Bacon – Market up 8%. High cost of raw material and seasonal demand.
Sausage – Market up. Same reasons: raw material and heavy demand.
Loins – Market is down fair amount, a great value.
Butts – Market down, low demand time of year.
Ribs – Expect increase as July 4th approaches and then will adjust to seasonal normal.
The poultry market remains unchanged from previous weeks. Warmer weather conditions are hampering bird weights even more as they continue to run small. Order fill rates on most items is better than previous weeks with the noted exceptions of wings and sized breasts where shortages continue every week. All other items are remaining steady in cost.
Swordfish – The market is even this week on cold water fish – however, July 4 Holiday demand will be high. We should see first landing of Canadian fish in two weeks and market will adjust down.
Tuna – Market is up, very high seasonal demand.
Halibut – Market is down, excellent production from both coasts.
Cod – Market is up.
Haddock – Steady on fresh, frozen supply is on the rise.
Salmon – Farmed Atlantic is down, a great value.
Barramundi – Market is steady, supply is very good.
Cobia – Market moved up slightly, but still at profitable level.
Bronzino – Market steady, supply is ample.
Lobster Whole – Market is up, demand is outpacing supply. Meat market is very high, expect same for the near future. Cold and warm tails large sizes are tight and market is strong. China is bidding on large amounts of Canadian production so market will adjust up as supple is depleted.
Shrimp – Asian exports from all regions are expecting see large increase in production over 2016. India alone is expecting a 20% increase. The weather in the gulf is hampering production. Outlook is that shrimp will remain a great value in coming months.
Pasteurized Crab – No real changes in market conditions supplies are tight are market is high.
Scallop – Market is steady to down, great value point.
Oysters – Market is steady.
Clams – Supply is good and market is steady on farmed clams. Wild Rhode Island product is scarce and we expect to see production from PEI in mid-July.
Mussels – Supply is normal, market is steady.
United states herd sizes continue to increase as a result of lower than average feed costs and production levels overall nationally are up a very strong level. This is a very profitable time for the farmers.
Milk / Cream – Priced monthly, market steady.
Cheese – Inventories are very good and exports are minimal. Market is steady and demand is on the rise. United States prices are below the global market.
Butter – Inventories are down year over year for the first time since March 2015. Exports are minimal and demand is high holding market at an above average point for the upcoming weeks.
Eggs – Shell up pennies, liquid is down.
Growing conditions are too dry at this stage of spring wheat development. The concern for low protein levels continue as usual. While global supplies are ample it is not of premium milling quality. The outlook as always remains on upcoming weather conditions. I expect a short term increase and then market will correct itself quickly.