Market

Market Conditions Report

Market Conditions Report: For the Week of August 20, 2017

Beef

  • Beef production was 641,000 which was up 1.8% from previous week and up 10.7% from previous year. Cattle continue to grade out at the targeted high end of USDA Choice and Prime meaning tight supplies of USDA Select and no roll and in some cases priced above Choice grade.
  • Ribeye – Market is up 1.2% from previous week and up 2.0% from previous year.
  • Tenders – Market is down 2.4% from previous week and down 7.2% from previous year.
  • Strip – Market is down 3.3% from previous week and down 13.5% from previous year.
  • Top Rounds – Market is up 0.9% from previous week and up 7.5% from previous year due to very strong demand.
  • Grinds – Market is down 3.1% from previous week and down 0.2% from previous year.

Pork

  • Pork production was 2.27 million up 1.0% from previous week and up 1.2% over previous year.
  • Bacon – Market dropped slightly for second week in a row and is down 1.7% from previous week but remains up 119.3% over previous year.
  • Sausage – Market is down 0.4% from previous week and up 7.9% over previous year.
  • Loins – Market is down 0.4% from previous week and up 4.0% over previous year.
  • Butts – Market is up 1.8% over previous week and down 3.0% from previous year.
  • Ribs – Market is down 1.8% from previous week and up 3.0% over previous year.

Poultry

  • Production was 163 million down 1.9 % from previous week and up 0.8 % over previous year. Demand remains strong in both foodservice and retail and wings will continue to rise and continue to be an issue.
  • Breast – Market is steady with previous week but still 23.6% over previous year.
  • Wings – Market is steady with previous week but remain at 43.6% over previous year. Supply is tight and sizes are and will remain to lean toward the high side of count per pound for the near future.
  • Tenders – Market is down 0.9% from previous week and down 4.8% from previous year.
  • Dark meat – Market is steady with previous week and down 4.8% from previous year. One export order could change this quickly.
  • Whole Chicken – Market is steady with previous week and up 20.2% over previous year remember demand will drop after upcoming Labor Day holiday that should help the situation.

 Fish

  • Swordfish – Market is steady, supply is stable and high quality, remains a good value.
  • Tuna – Market is steady, a great time to feature.
  • Halibut – Market is up slightly as catch has dropped, but still a value.
  • Cod and Haddock – Increase in quota’s on both species will lower frozen costs. As far as fresh, Cod is steady and Haddock is down slightly with increase in day boat catch.
  • Salmon – All farmed items are holding steady at current level and as far as wild the Sockeye and Coho are up as production drops this time of year and kings are holding at current level.
  • Cobia/Bronzino/Barramundi – All three farmed items are holding steady and have been a great value and great feature as supplies are in great shape and quality is excellent.

 Seafood

  • Lobster – Whole live market is steady and Cold tails are up as there is a limited supply of Canadian product available. Warm tail supply is improving and market is down slightly on smaller sizes. Lobster meat remains high and will continue for the foreseeable future.
  • Shrimp – Overall a quiet time for shrimp markets are holding steady and we expect the same for the near term as producing countries build the supply for the upcoming heavy fall order season however the outlook is excellent at this point.
  • Scallops – Market remains steady on all sizes.
  • Pasteurized Crab – Market remains at high point as inventories and supply situation remains tight.
  • Clams – Supply is good and market is steady on farmed items. Wild Rhode Island product is limited and PEI supply is improving.
  • Mussel – Supply is normal and market is steady.
  • Oyster – East coast supply is good and markets are holding at current level.

Dairy

  • Dairy – Production levels are improving as weather conditions cool in most areas and cattle are less stressed when weather cools. Supply is slightly ahead of demand at this point and near term outlook is positive.
  • Milk/Cream – Priced monthly no changes.
  • Cheese – Market is steady, a low demand time with exception of mozzarella from pizza accounts.
  • Butter – Market is holding steady and producers are ramping up inventories as fast as possible for upcoming high demand in Fall season.
  • Eggs – Shell eggs market is steady and supply is very good ahead of current demand. Liquid egg producers ramp up production this time of year and they remain steady.

Wheat

  • Last week’s USDA crop report surprised the markets with higher than expected production and yield numbers resulting in falling futures across the board. Spring wheat harvests in the US central states is more than 40% complete, ahead of the 5 year average. While yields are expected to be lower in the drought stricken areas they are ahead of expectations in other eastern producing regions. As weather situation improves crop production and quality will quickly follow. The market has a positive outlook for the near future at this time.