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FRESH CROP REPORT • The squash market is elevated. Stocks remain very tight in Florida and Mexico (into Nogales, Arizona). Prices are expected to start easing next week. • Avocados are abundant in Chile, the Dominican Republic, and Mexico. Quality is excellent: oil content is high and flavor is nutty. Now is the time to order for Super Bowl weekend crowds. W e e k o f J a n u a r y 2 9 , 2 0 1 2 APPLES The Washington market is stable. Storage supplies are sufficient. Quality is very good for all varieties: flavor is sweet. ASPARAGUS Prices are low; stocks are plentiful in Mexico. Quality is very good: flavor is grassy. AVOCADOS The market is unchanged despite strong Super Bowl demand. California new crop supplies are tight, but increasing. Quality is fair: oil content is low and flavor is mild. Stocks are abundant in Chile, the Dominican Republic, and Mexico. Quality is excellent: oil content is high and flavor is nutty. BELL PEPPERS - GREEN Florida prices are average despite tight stocks; recent freezing temperatures have reduced volume. Quality is good. The Mexican market is low; supplies (into Arizona and Texas) are ample. Quality is very good: flavor is zesty. BELL PEPPERS - RED AND YELLOW The Mexican market has eased to normal levels. Supplies (into Arizona and Texas) are sufficient. Quality is good. BLACKBERRIES Prices are steady; Mexican stocks are adequate. Quality is good: berries are plump and juicy. BLUEBERRIES The market is level; Chilean supplies are average. Quality is very good: flavor is tangy, yet sweet. BROCCOLI Prices are stable in Arizona, California, and Mexico (into South Texas); stocks are sufficient. This week’s warm weather should aid growth. Quality is very good in all regions. CANTALOUPE The market has peaked. Offshore fruit (from Honduras into California and Florida) has increased to adequate. Quality is very good: sugar levels are rising. CAULIFLOWER Arizona and California prices are low; stocks are plentiful, especially 12- to 16-count sizes. Quality is very good in both regions: flavor is mildly nutty. CELERY The market is high. Supplies are tight; some growers have transitioned from Oxnard, California to Yuma, Arizona. Quality is good in Arizona and very good in California: flavor is savory. CUCUMBERS Prices are easing in Mexico; supplies (into Nogales) are ample. The offshore market is level; stocks (from Honduras into Florida) are sufficient. Overall quality is very good: flavor is refreshing. GRAPES The Chilean green and red seedless markets have inched down to average; new crop supplies are sufficient. Quality is good for all varieties: flavor is sweet and texture is crunchy. GREEN LEAF/VARIETY LETTUCE Arizona and California prices remain elevated; stocks are limited, but expected to increase this week. Quality is good in both areas: epidermal blistering and peeling are slight problems. HONEYDEW The market remains elevated. Stocks are tight in Mexico (into Nogales) and from offshore (Honduras into California and Florida), yet will increase next week. Overall quality is average: melons are sweet. ICEBERG LETTUCE Arizona and California prices remain soft; stocks are ample. Overall quality is very good: last week’s freeze lightened head weights slightly. LEMONS The California market is steady. Central Valley and Southern California supplies are adequate; 165-count and smaller sizes dominate both crops. Quality is very good in all areas: color is deep yellow and flavor is tart. ONIONS - RED AND YELLOW Prices are low; storage supplies remain abundant in Colorado, Idaho, Oregon, and Washington. Overall quality is good: flavor is pungent. ONIONS - WHITE The market is up; storage stocks are limited in Colorado, Idaho, Oregon, and Washington. Quality is good in all regions: flavor is sharp and peppery. ORANGES Navel prices are unchanged. California supplies are abundant; Florida stocks are adequate. Overall quality is very good: fruit is juicy. PEARS The Washington market is stable. D’Anjou supplies are average; 100- and 110-count sizes are most plentiful. Quality is very good: texture is crisp and flavor is mildly sweet. PINEAPPLE Prices are firm at high levels; volume is expected to remain low in Costa Rica, Ecuador, and Mexico through May. Overall quality is very good: sugar levels are high. POTATOES The market is level, but starting to inch up. Carton supplies are beginning to tighten in Colorado, Idaho, Michigan, Nebraska, Nevada, Washington, and Wisconsin. Quality is very good in Idaho and average in all other regions. RASPBERRIES Mexican prices are steady; supplies are adequate. Quality is good: berries are flavorful, but bruising is a minor problem. ROMAINE The Arizona and California markets are average; supplies are sufficient. Overall quality is good: growers are trimming leaves with epidermal peeling. SPRING MIX Arizona prices are stable; supplies are plentiful. This week’s forecasted warm weather will increase growth. Quality is very good. Ready-Set-Serve Conventional and Organic Spring Mixes are available. SQUASH The market is elevated. Stocks remain very tight in Florida and Mexico (into Nogales). Prices are expected to start easing next week. Quality is fair in Florida and good in Mexico. STRAWBERRIES California prices remain high; recent rain has limited supplies in Oxnard. Warm, sunny weather is forecasted for the next ten days. Quality remains very good: flavor has improved. The markets in Florida and Mexico are level; stocks are adequate. Quality is average. TOMATOES Florida mature-green prices have eased even though stocks are tightening. Mexican prices are low; mature-green and vine-ripe supplies (into San Diego, California and Texas) are abundant. Quality is average in Florida and very good in Mexico. TREE FRUIT The new crop Chilean market has leveled; nectarines, peaches, and plums (into California and New Jersey) are scarce. Overall quality is good: flavor is mild and texture is firm. WATERMELON The Mexican market is stable; fruit (into Nogales) is ample. Offshore prices are steady; stocks (into Florida) have increased to average. Quality is very good in both regions: flavor is sweet. FRESH CROP REPORT • The squash market is elevated. Stocks remain very tight in Florida and Mexico (into Nogales, Arizona). Prices are expected to start easing next week. • Avocados are abundant in Chile, the Dominican Republic, and Mexico. Quality is excellent: oil content is high and flavor is nutty. Now is the time to order for Super Bowl weekend crowds. W e e k o f J a n u a r y 2 9 , 2 0 1 2 APPLES The Washington market is stable. Storage supplies are sufficient. Quality is very good for all varieties: flavor is sweet. ASPARAGUS Prices are low; stocks are plentiful in Mexico. Quality is very good: flavor is grassy. AVOCADOS The market is unchanged despite strong Super Bowl demand. California new crop supplies are tight, but increasing. Quality is fair: oil content is low and flavor is mild. Stocks are abundant in Chile, the Dominican Republic, and Mexico. Quality is excellent: oil content is high and flavor is nutty. BELL PEPPERS - GREEN Florida prices are average despite tight stocks; recent freezing temperatures have reduced volume. Quality is good. The Mexican market is low; supplies (into Arizona and Texas) are ample. Quality is very good: flavor is zesty. BELL PEPPERS - RED AND YELLOW The Mexican market has eased to normal levels. Supplies (into Arizona and Texas) are sufficient. Quality is good. BLACKBERRIES Prices are steady; Mexican stocks are adequate. Quality is good: berries are plump and juicy. BLUEBERRIES The market is level; Chilean supplies are average. Quality is very good: flavor is tangy, yet sweet. BROCCOLI Prices are stable in Arizona, California, and Mexico (into South Texas); stocks are sufficient. This week’s warm weather should aid growth. Quality is very good in all regions. CANTALOUPE The market has peaked. Offshore fruit (from Honduras into California and Florida) has increased to adequate. Quality is very good: sugar levels are rising. CAULIFLOWER Arizona and California prices are low; stocks are plentiful, especially 12- to 16-count sizes. Quality is very good in both regions: flavor is mildly nutty. CELERY The market is high. Supplies are tight; some growers have transitioned from Oxnard, California to Yuma, Arizona. Quality is good in Arizona and very good in California: flavor is savory. CUCUMBERS Prices are easing in Mexico; supplies (into Nogales) are ample. The offshore market is level; stocks (from Honduras into Florida) are sufficient. Overall quality is very good: flavor is refreshing. GRAPES The Chilean green and red seedless markets have inched down to average; new crop supplies are sufficient. Quality is good for all varieties: flavor is sweet and texture is crunchy. GREEN LEAF/VARIETY LETTUCE Arizona and California prices remain elevated; stocks are limited, but expected to increase this week. Quality is good in both areas: epidermal blistering and peeling are slight problems. HONEYDEW The market remains elevated. Stocks are tight in Mexico (into Nogales) and from offshore (Honduras into California and Florida), yet will increase next week. Overall quality is average: melons are sweet. ICEBERG LETTUCE Arizona and California prices remain soft; stocks are ample. Overall quality is very good: last week’s freeze lightened head weights slightly. LEMONS The California market is steady. Central Valley and Southern California supplies are adequate; 165-count and smaller sizes dominate both crops. Quality is very good in all areas: color is deep yellow and flavor is tart. ONIONS - RED AND YELLOW Prices are low; storage supplies remain abundant in Colorado, Idaho, Oregon, and Washington. Overall quality is good: flavor is pungent. ONIONS - WHITE The market is up; storage stocks are limited in Colorado, Idaho, Oregon, and Washington. Quality is good in all regions: flavor is sharp and peppery. ORANGES Navel prices are unchanged. California supplies are abundant; Florida stocks are adequate. Overall quality is very good: fruit is juicy. PEARS The Washington market is stable. D’Anjou supplies are average; 100- and 110-count sizes are most plentiful. Quality is very good: texture is crisp and flavor is mildly sweet. PINEAPPLE Prices are firm at high levels; volume is expected to remain low in Costa Rica, Ecuador, and Mexico through May. Overall quality is very good: sugar levels are high. POTATOES The market is level, but starting to inch up. Carton supplies are beginning to tighten in Colorado, Idaho, Michigan, Nebraska, Nevada, Washington, and Wisconsin. Quality is very good in Idaho and average in all other regions. RASPBERRIES Mexican prices are steady; supplies are adequate. Quality is good: berries are flavorful, but bruising is a minor problem. ROMAINE The Arizona and California markets are average; supplies are sufficient. Overall quality is good: growers are trimming leaves with epidermal peeling. SPRING MIX Arizona prices are stable; supplies are plentiful. This week’s forecasted warm weather will increase growth. Quality is very good. Ready-Set-Serve Conventional and Organic Spring Mixes are available. SQUASH The market is elevated. Stocks remain very tight in Florida and Mexico (into Nogales). Prices are expected to start easing next week. Quality is fair in Florida and good in Mexico. STRAWBERRIES California prices remain high; recent rain has limited supplies in Oxnard. Warm, sunny weather is forecasted for the next ten days. Quality remains very good: flavor has improved. The markets in Florida and Mexico are level; stocks are adequate. Quality is average. TOMATOES Florida mature-green prices have eased even though stocks are tightening. Mexican prices are low; mature-green and vine-ripe supplies (into San Diego, California and Texas) are abundant. Quality is average in Florida and very good in Mexico. TREE FRUIT The new crop Chilean market has leveled; nectarines, peaches, and plums (into California and New Jersey) are scarce. Overall quality is good: flavor is mild and texture is firm. WATERMELON The Mexican market is stable; fruit (into Nogales) is ample. Offshore prices are steady; stocks (into Florida) have increased to average. Quality is very good in both regions: flavor is sweet. FRESH CROP REPORT • The broccoli and cauliflower markets are beginning to ease. Warm weather is aiding growth; supplies are becoming more plentiful. • Florida’s freezing temperatures will affect bell pepper, orange, squash, strawberry, and tomato production. Expect prices to climb due to crop damage and subsequent quality problems. • Arizona and California celery stocks are expected to increase this week. Prices are stable. Quality is very good in both regions: stalks are crisp and flavor is zesty. W e e k o f J a n u a r y 8 , 2 0 1 2 APPLES Washington prices are starting to climb. Storage stocks remain adequate, but because school sessions have restarted, demand is increasing. Quality is excellent for all varieties: flavor is sweet and texture is crunchy. AVOCADOS Prices are stable. California new crop stocks are tight. Quality is good: texture is extra firm. Supplies are sufficient in Chile, the Dominican Republic, and Mexico. Quality is very good: texture is creamy and flavor is nutty. BELL PEPPERS - GREEN The market is rising. Florida supplies are tight due freezing temperatures. Mexican stocks (into Nogales, Arizona and Texas) are limited, but expected to increase by early next week. Quality is good in both areas. BELL PEPPERS - RED Prices remain elevated. Stocks are limited in Mexico (into Nogales and Texas) due to cold weather. Quality is average. BROCCOLI The market is beginning to ease. Warm weather is aiding growth; supplies are starting to increase in Arizona, California, and Mexico. Overall quality is very good. CANTALOUPE Prices are starting to climb. Guatemalan stocks are tightening, especially small sizes; growers are moving to Honduras. Expect high prices through January. Quality is good: flavor is mildly sweet. CAULIFLOWER The market is starting to inch down. Arizona and California supplies are sufficient; warm weather will increase growth this week. Overall quality is very good: curds are white and flavor is mildly nutty. CELERY Prices are stable. Arizona and California stocks are adequate; warm weather is expected to increase growth this week. Quality is very good in both regions: stalks are crisp and flavor is zesty. CUCUMBERS The market is slightly higher than last week. The Florida season is winding down; supplies are tightening. Mexican stocks (into Nogales) are adequate. Offshore fruit (from Honduras into Florida) is limited, but will increase as the season progresses. Quality is very good in all regions: color is light, but flavor is refreshing. GRAPES Chilean green seedless market prices are easing to normal levels; stocks are sufficient. Quality is average: brown spotting is a minor problem, yet flavor is sweet. The red seedless market is steady. GREEN LEAF/VARIETY LETTUCE The market has risen to average. Arizona and California supplies are starting to tighten; warm weather is exacerbating problems such as epidermal blistering and peeling, yet quality remains average in both areas. HONEYDEW The market is up. Stocks will be extremely limited for the next two weeks. Cold weather has impeded growth in Mexico. Offshore growers are moving from Guatemala to Honduras, reducing availability. Overall quality is very good: flavor is sweet. ICEBERG LETTUCE The Arizona and California markets are near the bottom; demand is weak and supplies are plentiful. Prices are forecasted to increase slightly next week. Quality is good in both regions, but epidermal blistering and peeling persist. LEMONS Prices are climbing. Arizona/California desert region fruit is beginning to tighten; demand is strong. Expect the market to inch up through this month. Overall quality is very good: flavor is pleasantly tart. ONIONS - RED AND YELLOW The market remains near the bottom; stocks are ample in Colorado, Idaho, Oregon, and Washington. Prices are expected to rise in the spring when the storage season winds down. Quality is good in all regions: flavor is zesty. ORANGES The market is unchanged. Stocks are sufficient in California and Texas. Freezing temperatures are reducing Florida supplies. Quality is very good in all areas: juice content is high and flavor is sweet. PINEAPPLE The market remains elevated; fruit is tight in Costa Rica, Ecuador, and Mexico. Overall quality is very good: sugar levels are high. POTATOES Prices have inched down slightly, but are expected to rebound over the next several weeks. Supplies are sufficient in Colorado, Idaho, Michigan, Nebraska, Nevada, Washington, and Wisconsin. Quality is excellent in all regions. ROMAINE Prices are up slightly. Arizona and California supplies are starting to tighten; epidermal blistering and peeling are reducing volume. Overall quality is good. SPRING MIX The Arizona market is level. Stocks are sufficient; warm weather is increasing growth. Quality is very good: shelf life has returned to normal. SQUASH Prices are skyrocketing. Freezing temperatures have stopped almost all production in Florida. Mexican supplies (into Nogales) are tight due to last week’s cold weather. Quality is average in both regions. STRAWBERRIES The market remains elevated. Stocks are increasing to average in California and Mexico. Florida fruit is extremely limited due to freezing temperatures. Overall quality is average: berries are mildly sweet. TOMATOES Florida mature-green prices are inching up; this week’s freezing temperatures will reduce volume. The Mexican market is steady; mature-green and vine-ripe stocks are adequate. Quality is good in both regions. W e e k o f D e c e m b e r 24 , 2 0 1 1 BEEF Market is mixed. The story this week is the winter storm that hit the plains and disrupted production and transportation. USDA estimates put production down around 12% thru mid week. Combine this with already reduced production from previous weeks and some inventories have really tightened up. Several meat cuts have firmed in price this week while others are in their seasonal slide downward. Grinds- Market is firm. Inventories are tight and product is difficult to come by. The reduced production this week will help hold this market firm for the short term. Chucks- Market is steady to slightly firmer. This market is expected to continue to firm over the next few weeks as inventories tighten and demand increases. Ribs- Market is weak. This market has dropped heavily this week as packers try to align inventories with demand. Seasonal demand has began to slump and pricing has followed the same trend. Rounds- Market is steady to slightly firmer. Reduced production has helped tighten inventories with a demand that is expected to be good for the next few weeks. Loins- Market is steady to slightly lower. The market is moving downward and is expected to continue the trend well into January. Current inventories outpace demand and packers are adjusting pricing to help bring inventories in line with demand. PORK
Market is steady to slightly lower. Total pork production for last week was up .5% versus the prior week and up .2% from a year ago. Live weights were even with prior week. Domestic demand is reported as down for this week and has helped ease pricing on some cuts. Export demand remains good as it has for most of the year and continues to help hold the markets from softening as in years past. Bellies- Market is steady. Inventories continue to build while demand remains light. Hams- Market is steady to slightly lower. Larger hams continue to slowly move downward as demand has eased on these sizes. Smaller sized hams and spirals have held mostly steady this week as demand has eased slightly after a couple straight weeks of tighter inventories and heavy demand. Butts- Market is steady to slightly lower. Export demand is expected to help hold this market mostly steady for the next few weeks. Loins- Market is steady to slightly lower. Strong production has helped inventories to build while demand has been down this week. Short term expectations are for the market to remain mostly steady. Ribs- Market is steady.
CHICKEN
Markets overall are rated steady to full steady. Business is seasonal with supply levels tighter than what we’ve seen the past few months. WOGs and whole birds have settled this week and are steadier than the last week or two. Whole breasts are steady. Tenders are short on supply in most cases with asking prices trending higher. Dark meat is rated about steady, for the most items, except legs are limited in availability with this market higher. Wings continue to be strong.
TURKEY
Recent business has been minimal with not much going on in the way of trading. Whole birds are winding down with suppliers looking to move some product for first part of the new year. Breast meat is not receiving much interest with this line just stagnant. Thigh meat and bone in thighs receiving some interest. Breast trim and scapula is shown at discounted prices. Whole wings are about steady with tom two joints more mixed.
SEAFOOD
Gulf Shrimp- Market is firm. Production and inventory numbers remain well behind same time last year and whites remain in tight supply. This market is expected to remain firm as we move into early next year. Black Tiger Shrimp- Market is steady to firmer. Larger sized shrimp remain firm with inventories reported as limited. Medium and smaller sizes are steady with demand rated as mixed. White Shrimp- Market is steady. Demand for this week is rated as dull. Warm Water Lobster Tails- Market is steady. Demand for this week is rated as low. North American Lobster Tails- Market is unsettled. Inventories are very good with a demand that is fair. Pricing varies between suppliers and they try to get pricing in line with current inventories. Snow Crab- Market is steady to slightly weaker. Inventories are good for a dull demand. Dungeness Crab- Market is steady to slightly weaker. Inventories are good while demand is rated as only fair. King Crab- Market is steady but firm. Inventories remain limited with a good demand. Salmon- Market is steady. Cod- Market is steady. Flounder- Market is steady to slightly firmer. Inventories are light for a good demand. Haddock- Market is steady. Pollock- Market is steady. Whiting- Market is steady. Domestic Catfish- Market is steady but firm. Inventories remain limited and demand is good. Additional product is still very difficult to come by. Total inventories remain well below same time last year and pricing is expected to remain above last year’s levels as we move into early next year. Scallops- Market is steady but firm. Global demand remains very strong and continues to put pressure on domestic supplies. Tilapia- Market is steady. Inventories remain tighter on mid to larger sizes with pricing reflecting accordingly. Smaller sizes remain more plentiful with pricing being slightly lower than the other sizes. Swai- Market is mixed. Smaller sizes remain very firm with inventories being limited. Pricing is mixed on larger sizes with reports of suppliers trying to move inventory and pricing being varied between supplier. All indicators point to this market firming as we move into 2012 because of higher material prices and replacement costs. Grouper- Market is firm. Inventories remain limited.
DAIRY Cheese- Market is steady to slightly weaker. The CME Block market has continued to inch downward this week while the CME Barrel market is holding mostly steady. Inventories are good for a light demand. Several producers have made commitments to use the extra milk that is available while schools are out on their winter breaks. The market is expected to be steady to slightly lower until it’s seasonal firming in early January as schools come back into session.
Butter- Market is slightly softer. The CME Butter Market continued to inch slightly lower this week. Churning activity is expected to be strong the next couple of weeks as cream will be readily available with demand in other applications being down.
EGGS
Market is firm. Retail demand remains very good and foodservice demand is seasonally good. Inventories remain tight with larger sizes being reported as the most limited with inventory being slightly better on smaller sizes. Retail demand is expected to ease as we move past Christmas but as we move into next week pricing will be firm.
FRUITS, VEGETABLES, & IMPORTS
White Potatoes continue to be tight and raw product pricing remains high. Beets remain extremely tight and raw product pricing continues to rise. Southern Greens continue to be tight due to quality, spring and fall pack shortfalls, and the increased up-front costs incurred for the winter pack. All varieties of southern peas remain tight with some isolated out of stock situations. Look for pricing to remain firm until spring pack. Rice – the rice production forecast has been increased due to an increase in yield. Long grain, medium, and short grain yield has increased overall by approximately 25%.
SOY Euro news of low interest loans to European Banks for 630 plus billion dollars, double the estimates, helped create some market excitement on Tuesday. South American dry weather is now seeing some rain. Good export numbers for the week. No major supply/demand issues being reported either domestically or abroad that would drastically effect price. Upward market movement is primarily fund driven. Low volume reported leading into Holiday. W e e k o f D e c e m b e r 1 1 , 2 0 1 1 APPLES Washington prices are steady. Storage stocks are adequate; large sizes dominate the crop. Varietals like Braeburn, Fuji, and Pink Lady are on the market. Quality is excellent: flavor is sweet and texture is crunchy. ASPARAGUS The Mexican market is rising sharply; cold weather has tightened supplies. Prices are also climbing in Peru; stocks are sufficient, but demand is strong. Quality remains very good in both regions: flavor is subtly grassy. AVOCADOS Prices are level. Chilean stocks are limited, but will increase later this month. Supplies from the Dominican Republic and Mexico are adequate. The new crop California season will start in late January. Overall quality is very good: as oil content increases, texture will become creamier and flavor will improve. BELL PEPPERS - GREEN The market is near the bottom. Although the Coachella, California season is ending and supplies are tight, stocks are sufficient in Florida and Mexico (into Nogales, Arizona and Texas). Overall quality is very good. BELL PEPPERS - RED California prices are stable; adequate stocks will be available from Coachella through December. Mexican supplies (into Nogales) are limited, but starting to increase. Quality is very good in both regions. BLACKBERRIES The market is steady. California fruit is tight; quality is average. Stocks are sufficient in Mexico; quality is very good: berries are juicy and sweet. BLUEBERRIES Prices are unchanged; supplies are adequate in Argentina, Chile, and Mexico. Overall quality is good: flavor is sweet, although shriveling is a minor problem. BROCCOLI The market is climbing. Low temperatures have slowed growth and tightened stocks in Arizona, California, and Mexico (into Texas). Quality is average in all regions; irregular bead size, pin rot, and small crown size are problems. CANTALOUPE Prices are up. The Arizona/California desert season will end this week; supplies are limited. Mexican stocks (into Nogales) are scarce; the season will end in ten days. New crop offshore fruit (from Guatemala into Florida) is tight, yet starting to increase. Overall quality is good: new crop sugar levels are low, but climbing. CAULIFLOWER The Arizona and California markets are rising. Freezing temperatures have slowed growth and tightened stocks. Expect elevated prices for several weeks. Despite the poor weather, overall quality is very good. CELERY Prices are steady; supplies are abundant in Oxnard, California. Quality is excellent. CUCUMBERS The Florida market has eased; stocks are abundant. Mexican prices are stable; supplies (into Nogales) are plentiful. Overall quality is good: flavor is light and fresh. GRAPES Green and red seedless prices are inching up; storage fruit is tightening. The Chilean season will start in mid- to late December. Quality is average: sugar levels remain high. GREEN LEAF/VARIETY LETTUCE Although prices are level, they are expected to inch up. Cold weather will decrease supplies in Coachella, California and Yuma, Arizona. Quality is very good, but will decline: expect epidermal blistering and yellowing leaves over the next several weeks due to recent freezing temperatures. HONEYDEW Prices have risen to average. The Arizona/California desert season is ending; stocks are limited. Mexican supplies (into Nogales) are also tight. The new crop offshore season (into Florida) has begun; volume is starting to increase. Overall quality is very good: melons will become sweeter as the new crop season progresses. ICEBERG LETTUCE The market is starting to climb. This week’s low temperatures will decrease supplies in Arizona and New Mexico; California stocks are tight. Quality is very good, but is expected to decline over the next several weeks. LEMONS Although the majority of prices are unchanged, the 165-count and smaller size markets are inching up. California supplies are adequate. Quality is very good: fruit is deep yellow and juice is tart. ONIONS - RED AND YELLOW The red and yellow markets are easing; supplies are sufficient in Colorado, Idaho, Oregon, Utah, and Washington. Overall quality is good: flavor is pungent. ONIONS - WHITE Prices are high; stocks are very tight in Colorado, Idaho, Oregon, Utah, and Washington. Quality is average in all regions. ORANGES Prices are stable; supplies are adequate in California, Florida, and Texas. Overall quality is very good: color is deep orange and flavor is sweet. PEARS The Washington market is steady. Although the Bartlett season is winding down, volume is sufficient. D’Anjou stocks are starting to increase, especially 100- and 110-count sizes. Quality is very good for both varieties. PINEAPPLE Prices are level; supplies are adequate in Costa Rica, Ecuador, and Mexico. Overall quality is good: bruising is minimal and flavor is sweet. POTATOES The market is unchanged in Colorado, Idaho, Michigan, Nebraska, Nevada, Washington, and Wisconsin. The majority of Norkotah and Burbank stocks are sufficient, but small sizes (90- and 110-count potatoes) are tightening. Quality is very good in all regions. RASPBERRIES Prices are level; supplies are limited in California, but adequate in Mexico. Quality is good: flavor is sweet. ROMAINE The market is stable, but is expected to jump by mid-week. Freezing temperatures in Arizona and California are expected to diminish stocks. Quality is good: epidermal blistering and peeling are predicted to become problems. SPRING MIX Prices are rising. Cold Arizona weather is limiting harvests and reducing supplies. Quality is average: freezing temperatures will cause numerous problems over the next few weeks. SQUASH The market is steady; stocks are sufficient in Florida and Mexico (into Nogales). Zucchini is more abundant than yellow squash. Overall quality is very good. STRAWBERRIES Expect elevated prices through December; demand is strong. Cold California weather is limiting volume in Oxnard; the new crop Coachella season will begin approximately December 19. Supplies are also tight in Florida and Mexico. Quality is average in all regions: decay and bruising are slight problems in California. TOMATOES The Florida mature-green market is low; stocks have increased. Mexican vine-ripe prices are starting to inch up; supplies (into San Diego) are tight. Mexican new crop fruit will become available in Nogales over the next several weeks. Overall quality is very good. WATERMELON Prices are unchanged. Seeded Mexican stocks will be limited through the winter season; seedless supplies are adequate. Offshore fruit will become available in Florida at the end of the month. Quality is very good for both varieties: sugar content is high and flavor is sweet. Market Report- November 18, 2011BEEF
Market is firming. Inventories continue to tighten with production numbers continuing to fall. Total production for last week down 3.6% lower than the previous week. Production numbers are expected to continue to decrease as we move thru the next few weeks. Packer margins remain very negative and reports show that the numbers got worse as we moved thru mid week. Live pricing last week hit record highs and pricing has held high as we moved into this week. Several cuts are difficult to come by and others are expected to get tighter as overall inventories continue to shrink. Some retailers have recently switched to selling Choice products and this is putting additional pressure on those items.
Grinds- Market is firming. Pricing has continued to climb again this week and inventories are limited. The reduced production is expected to have a large impact on this category and product is expected to be extremely tight over the next several weeks. Expect this market to remain firm as we move into 2012.
Loins- Market is firming. Strips and loins remain very firm with inventories reported as tightening.
Chucks- Market is steady. Inventories are expected to firm up with the reduced production but current inventories are holding pace with demand.
Rounds- Market is steady to firmer. Demand is listed as very good and inventories are tightening.
Ribs- Market is firm. Inventories remain very tight with additional product very difficult to come by. This market is expected to remain firm thru the holidays.
PORK
Market is mostly steady. Total pork production for last week was down 2% from the previous week and down 1.8% from same time last year. Live pricing moved slightly lower to start this week but remains well above last year. Exports remain strong and continue to hold the market higher than expected. The current high pricing of the beef market is expect to have an impact on the pork market as consumers search for lower priced proteins.
Bellies- Market is steady. After several weeks of large declines the market has mostly leveled out and the trend is expected to remain fairly steady as we move into December.
Hams- Market is steady. Even though domestic demand is slowing, export demand remains strong and is helping keep inventories in line. The market is expected to remain fairly steady as we move thru the holidays.
Butts-Market is steady to slightly firmer. Export demand remains strong and overall demand is reported as improved and putting pressure on the market.
Loins- Market is steady to slighter lower. Inventories are greater than current demand and pricing inched lower again this week. This market is expected to rebound once we move past Thanksgiving and demand picks up for December.
Ribs- Market is steady. Demand is seasonally average and pricing is holding steady.
CHICKEN
Interest overall is mostly basic but with egg sets down and production cutbacks, inventory levels on some items have become somewhat limited. Markets again this week have seen some increases as products become tight. WOGs and whole birds fall into this category as product becomes tight and levels move upwards. Tenders are tight and have also seen increases this week. Dark meat is rated mostly steady across the board. Wings are the most sought after items with markets taking increases daily.
TURKEY
Markets are mostly quiet as we head into the holiday week. Suppliers are mostly finishing up on fresh commitments for whole birds. Fresh pricing for December is thought to be close or little lower than November levels. Frozen whole birds remain tight with a few minimal orders here and there. Bone in breasts are rated steady to full steady. Drums are steady. Whole wings are tight with inventory levels not covering full needs. Thigh meat is tight.
SEAFOOD
Gulf Shrimp- Market is steady to slightly firmer. Inventory on whites are tight with production being limited. PUD’s continue to firm due to limited inventories.
Black Tiger- Market is steady.
White Shrimp- Market is mixed. 31-35 and smaller Latin American product is firming as demand is outpacing supplies. The rest of the market is steady.
Warm Water Lobster Tails- Market is steady. Inventories are good for a quiet demand.
North American Lobster Tails- Market is steady.
Snow Crab- Market is steady.
King Crab- Market is firming. Inventories are tight for an active demand.
Salmon- Market is steady. Inventories are good for a dull demand. An exception would be European Wholefish as inventories are slightly tighter for that market and demand is listed as good. That market is steady to slightly firmer.
Cod- Market is steady to slightly firmer. Inventories are light for a good demand.
Flounder- Market is firm. Inventories remain light for moderate demand.
Haddock- Market is steady.
Pollock- Market is steady.
Whiting- Market is steady. Inventories remain light with a dull demand.
Domestic Catfish- Market is firm. Inventories remain very tight for a good demand. Inventories will remain tight as we move into 2012.
Tilapia- Market is firming. Larger sizes continue to tighten in supply.
Swai- Market is firming. Pricing is expected to firm as we move into 2012. Smaller sizes are very tight in supply.
Grouper- Market is firm. Inventories remain limited.
Mahi Mahi- Market is firm. Inventories are very limited and are expected to remain that way as we head into 2012.
Scallops- Market is firm. Domestic landings have declined in recent weeks and usage remains very strong. Global demand remains strong with inventories limited.
DAIRY Cheese- Market has continued to firm. This week has seen another strong week of gains on both the CME Block and Barrel markets. Demand is very good while production is listed as at lighter seasonal levels. Most manufacturers will be operating on a reduced schedule next week and this could put additional pressure on the market. Historical trends show that this market tends to weaken as we move into December.
Butter- Market is softening. Churning remains seasonally active but cream supplies are tightening. Retail demand remains strong as we move closer to Thanksgiving. Inventories are expected to outpace demand as we move into December.
EGGS Market is steady to slightly lower. Total shell egg inventories for this week began down 10.2% versus the prior week. This drop in inventory was made up mostly of larger sizes with mediums showing the slowest movement. Retail demand is good and is expected to increase. Foodservice demand remains seasonally average with demand expected to slow as we approach Thanksgiving. Overall inventories are reported to be in good position for current demand.
FRUITS, VEGETABLES, & IMPORTS
Tuna Update
Some tuna processors have had to close their factories due to flooding reaching his facility. Demand for tuna remains high with production almost at a standstill this week. Workers are leaving the city for safer areas, which leaves processors no option except to try and recruit new workers for tuna that is being processed. The main threat for companies other than a direct hit from the floods is the possibility that critical supply routes will become totally impassable. Boats are avoiding Bangkok in favor of southern ports. Factories which experience flood damage can expect to take two to four weeks to recover.
SOY This week has been eerily similar to previous weeks in terms of futures activity. Outside markets and speculation based on European economic news have been the primary drivers. There were reports early in the week of bean movement to China. Some discussion late in the week that soy oil may have seen its bottom.
Market Report BEEF Market is unsettled. Total production for last week was up 3.5% as a result of higher weights and increased cattle numbers being processed. Live prices finished up last week and moved into record territory this week. Packer margins dipped lower again this week and several reports show reduced production very likely in the near future. Reduced production combined with winter weather is likely to make availability very difficult as we move into year end. This market is expected to remain uncertain for the next few weeks. Grinds- Market is steady to slightly firmer. Inventories remain fairly tight and extra inventory remains difficult to come by. Allocations are not uncommon for larger than normal orders. If production cut backs take place look for this market to continue to firm and inventories to be tight. Loins- Market is steady. Rounds- Market is steady to slightly lower. Chucks- Market is steady. Ribs- Market is firming. Demand remains very strong. Additional product is very difficult to come by and pricing has moved much higher than just a few weeks ago. Expect this market to continue to firm as the holidays approach.
PORK Market is steady to slightly lower. Total pork production was down .4% last week versus the prior week and down 1.7% versus a year ago. Production is strong and exports remain very strong. Pork generally takes a back seat to turkey as we move into the Thanksgiving time frame but current exports are helping hold pricing at higher than anticipated levels as overall inventories remain tighter than normal.
Bellies- Market is lower. Inventories are building and are outpacing current demand. The market is expected to continue to soften over the next few weeks.
Hams- Market is steady to slightly lower. Demand has started to drop as holiday demand has started to lighten and inventories begin to increase. Demand is greater on the smaller sized items and about steady on larger sizes.
Butts- Market is steady to slightly lower. Exports continue to put pressure on pricing. Domestic demand is not as strong and pricing is expected to move slightly lower for the next few weeks before reversing the trend just in time for Christmas demand.
Loins- Market is steady to slightly lower. Current demand is fair but is expected to pick up once we move past Thanksgiving.
Ribs- Market is steady to slightly firmer. Demand continues to increase putting pressure on pricing. This trend is expected to continue as move thru November.
CHICKEN Markets have been a little sluggish with not much in the way of sales this week. Markets have not seen much change in the last few weeks. Demand is just basic with supplies in line with current needs. WOGs and whole birds are about steady. Boneless is steady as well with tenders following suit. Dark meat seems to be mixed with suppliers needing to move leg and thigh meat. Wings are the shortest items on the list with smaller sizes more popular.
TURKEY The market remains firm on most items. All sizes of toms and hens are firm. Fresh whole birds see price advances this week. Frozen are firm and hold for market or better. Thigh meat is hard to cover current needs. Breast meat remains tight. Institutional sized breasts are hard to secure with not much inventory available. Fresh and frozen drums slightly higher this week.
SEAFOOD
Gulf Shrimp- Market remains mixed. HLSO Browns remain fairly steady while Whites continue to firm in pricing. Current White production is rated as poor. PUD’s remain firm based on lack of white shrimp.
Black Tiger Shrimp- Market is steady.
White Shrimp- Market is mixed. Latin American 41-50 count and smaller are firm because of tight inventories. The rest of the market is rated as steady.
Warm Water Lobster Tails- Market is steady. Inventories are good for a dull demand.
North American Lobster Tails- Market is steady. Inventories are listed as slightly heavier on 3-4 and 4-5 oz product.
Snow Crab- Market is steady.
King Crab- Market is firming. Inventories are light for an active demand. Replacement product is very limited.
Salmon- Market is steady. Inventories are good for a quiet demand.
Cod- Market is steady to slightly firmer. Inventories are tightening with a good demand and pricing is expected to be firmer as we move into 2012.
Flounder- Market is firm. Inventories remain light for a good demand.
Haddock- Market is steady.
Pollock- Market is steady to slightly firmer. Production overseas is limited and is expected to put additional pressure on the market.
Whiting- Market is steady.
Domestic Catfish- Market is firm. Inventories remain tight and as colder weather approaches the overall production is expected to decline. Pricing is expected to remain firm as we move into next year with product very limited.
Tilapia- Market is firming. Reports of production problems overseas continue to surface and replacement inventories are difficult to come by with larger sizes being very tight.
Swai- Market is firming. Replacement inventories are getting more difficult to secure and smaller sizes are listed as extremely tight.
Scallops- Market is steady but firm. Demand remains active as global price remain high and put additional pressure on the domestic market.
Mahi Mahi- Market is firm. Inventories remain very limited and are causing pricing to remain firm.
DAIRY Cheese- Market is firming. Both the CME Block and Barrel market moved upward this week. Cheese production is strong while milk supplies are decreasing. Demand is seasonally good. Recent reports show that year to date cheese exports are up 33% versus last year and demand is expected to remain strong.
Butter- Market is steady to slightly firmer. The CME Market started the week slightly higher than last week and has held fairly steady for the remainder of the week. Churning schedules are very active and cream supplies are listed as tightening. Overall demand is good and advertising is expected to increase as we move into the holiday time frame. Recent reports show that butter production for September was up 31% compared to last year and is the largest single production month in over 60 years. Even with this increase butter inventories hit the 18th straight month of being below the 5 year average. Even with the large increase in production the total inventories were only up 16% versus the prior year and inventories fell 9% from the previous month.
EGGS Market is steady. Retail demand is steady with advertising reported as spotty. Expectations are for advertising to really pick up as we approach Thanksgiving. Foodservice demand is seasonally average. Total egg inventories are up 11.6% versus prior week. Current inventories are at their highest levels of the past 5 years.
FRUITS & VEGETABLES
Bean Market Update:
Pintos: harvest is complete, marking the smallest crop due to planted acres and yield since the USDA/NASS began keeping records. This market is firm due to lack of grower selling, even at elevated values. There are limited supplies available for traditional export channels such as the Dominican Republic, Angola, and Mexico.
Black Beans: continued demand from Mexico has kept this market firm.
Navy Beans: this class was most impacted by the frost late September in North Dakota due to the longer growing season of the variety in addition to the late planting this spring. There was significant yield loss due to frost damage. This class remains very firm with limited availability.
Great Northerns: growers are completing harvest this week, due to the late plantings this spring. Yields were lower than average. With the limited world supply of white beans, this market remains firm.
Blackeye Peas: harvest is approximately 60% complete in California, with yields slightly lower than average. With the majority of the Texas acres non-harvestable, this market is very, very strong with limited availability.
Small Reds, Pink Beans, and Kidney Beans: remain steady with limited activity.
Peas and Lentils remain steady as growers merchandise their crop to keep up with demand.
Frozen Vegetables
Based on the industry’s assessment of the crop and the lack of carryover in peas and corn, expect to see tight supply and significant price increases in the next 30 – 45 days.
Rice
U.S. rice production in 2011/12 is forecast at 186.9 million CWT, making it the smallest crop since 1998/99. The decline is entirely due to a decrease in yield. Long grain production is forecast at 116.8 million CWT, making this the smallest crop since 1996/97. Combined medium and short grain production is still a record forecast at 70.1 million CWT. Domestic and residual use for 2011/12 is at 127.0 million CWT. Total rice exports are projected at 91.0 million CWT, down 2.0 million CWT from the September forecast. Long grain ending stocks are projected at 16.9 million CWT, 18.7 million CWT lower than last year. Rice harvest in all six states is 82% complete as of October 16. California is only 29% complete versus a 79% historical average. India’s lifting of its export ban on non-basmati rice has kept a lid on global prices. They are $100 per ton lower than Viet prices and $125 per ton lower than Thai prices. The flooding in Thailand, while devastating, is not expected to have much of an impact on the global market. There is time to replant and the government is going to take the rice off the market with their intervention plan.
SOY Another steady week in soy oil. Greece and European debt issues were the primary focus early in the week. Corn was a market influencer. Thursday saw an upturn in price of soy oil on fund activity.
Wheat Russian drought recovery and high domestic prices leading to more plantings have helped to create a well stocked inventory of wheat supplies. Exports should be rather stagnant due to higher prices. As harvest continues to develop there is the real possibility of dramatic price decreases. Should corn prices remain high wheat could be substituted as livestock feed and offset some of the declines. Harvest are weather are key.
COFFEE The coffee market remains very unstable. While the coffee commodity pricing has increased slightly, the daily market prices continue to be very volatile due to world economic issues. Outlook is that pricing will remain firm to slightly higher. JUICES
Apple Market is quiet while waiting on new crop from China. Projections are for a good crop. No real price direction at this time.
Grapefruit Product demand is up and the crop is down. Pricing will remain very firm to higher.
Orange Pricing remains firm to possibly moving higher. Most factories running at full capacity.
NON FOODS
Resin The market remains very soft, resin manufactures continue to push for increases but the demanded is just not there. This market mainly effects Can Liners & plastic disposables.
Paper-Pulp Market price is flat to slightly down, but still higher than same period last year and pricing remains firm as we have seen all year.
Aluminum Markets continue to be in turmoil with the world economic outlook and consumer confidence falling to a two year low. At the moment, it is impossible to predict future trends. Market remains steady to possibly higher depending on economic news. Market Report BEEF Market is unsettled. Total production for last week was up 3.5% as a result of higher weights and increased cattle numbers being processed. Live prices finished up last week and moved into record territory this week. Packer margins dipped lower again this week and several reports show reduced production very likely in the near future. Reduced production combined with winter weather is likely to make availability very difficult as we move into year end. This market is expected to remain uncertain for the next few weeks. Grinds- Market is steady to slightly firmer. Inventories remain fairly tight and extra inventory remains difficult to come by. Allocations are not uncommon for larger than normal orders. If production cut backs take place look for this market to continue to firm and inventories to be tight. Loins- Market is steady. Rounds- Market is steady to slightly lower. Chucks- Market is steady. Ribs- Market is firming. Demand remains very strong. Additional product is very difficult to come by and pricing has moved much higher than just a few weeks ago. Expect this market to continue to firm as the holidays approach.
PORK Market is steady to slightly lower. Total pork production was down .4% last week versus the prior week and down 1.7% versus a year ago. Production is strong and exports remain very strong. Pork generally takes a back seat to turkey as we move into the Thanksgiving time frame but current exports are helping hold pricing at higher than anticipated levels as overall inventories remain tighter than normal.
Bellies- Market is lower. Inventories are building and are outpacing current demand. The market is expected to continue to soften over the next few weeks.
Hams- Market is steady to slightly lower. Demand has started to drop as holiday demand has started to lighten and inventories begin to increase. Demand is greater on the smaller sized items and about steady on larger sizes.
Butts- Market is steady to slightly lower. Exports continue to put pressure on pricing. Domestic demand is not as strong and pricing is expected to move slightly lower for the next few weeks before reversing the trend just in time for Christmas demand.
Loins- Market is steady to slightly lower. Current demand is fair but is expected to pick up once we move past Thanksgiving.
Ribs- Market is steady to slightly firmer. Demand continues to increase putting pressure on pricing. This trend is expected to continue as move thru November.
CHICKEN Markets have been a little sluggish with not much in the way of sales this week. Markets have not seen much change in the last few weeks. Demand is just basic with supplies in line with current needs. WOGs and whole birds are about steady. Boneless is steady as well with tenders following suit. Dark meat seems to be mixed with suppliers needing to move leg and thigh meat. Wings are the shortest items on the list with smaller sizes more popular.
TURKEY The market remains firm on most items. All sizes of toms and hens are firm. Fresh whole birds see price advances this week. Frozen are firm and hold for market or better. Thigh meat is hard to cover current needs. Breast meat remains tight. Institutional sized breasts are hard to secure with not much inventory available. Fresh and frozen drums slightly higher this week.
SEAFOOD
Gulf Shrimp- Market remains mixed. HLSO Browns remain fairly steady while Whites continue to firm in pricing. Current White production is rated as poor. PUD’s remain firm based on lack of white shrimp.
Black Tiger Shrimp- Market is steady.
White Shrimp- Market is mixed. Latin American 41-50 count and smaller are firm because of tight inventories. The rest of the market is rated as steady.
Warm Water Lobster Tails- Market is steady. Inventories are good for a dull demand.
North American Lobster Tails- Market is steady. Inventories are listed as slightly heavier on 3-4 and 4-5 oz product.
Snow Crab- Market is steady.
King Crab- Market is firming. Inventories are light for an active demand. Replacement product is very limited.
Salmon- Market is steady. Inventories are good for a quiet demand.
Cod- Market is steady to slightly firmer. Inventories are tightening with a good demand and pricing is expected to be firmer as we move into 2012.
Flounder- Market is firm. Inventories remain light for a good demand.
Haddock- Market is steady.
Pollock- Market is steady to slightly firmer. Production overseas is limited and is expected to put additional pressure on the market.
Whiting- Market is steady.
Domestic Catfish- Market is firm. Inventories remain tight and as colder weather approaches the overall production is expected to decline. Pricing is expected to remain firm as we move into next year with product very limited.
Tilapia- Market is firming. Reports of production problems overseas continue to surface and replacement inventories are difficult to come by with larger sizes being very tight.
Swai- Market is firming. Replacement inventories are getting more difficult to secure and smaller sizes are listed as extremely tight.
Scallops- Market is steady but firm. Demand remains active as global price remain high and put additional pressure on the domestic market.
Mahi Mahi- Market is firm. Inventories remain very limited and are causing pricing to remain firm.
DAIRY Cheese- Market is firming. Both the CME Block and Barrel market moved upward this week. Cheese production is strong while milk supplies are decreasing. Demand is seasonally good. Recent reports show that year to date cheese exports are up 33% versus last year and demand is expected to remain strong.
Butter- Market is steady to slightly firmer. The CME Market started the week slightly higher than last week and has held fairly steady for the remainder of the week. Churning schedules are very active and cream supplies are listed as tightening. Overall demand is good and advertising is expected to increase as we move into the holiday time frame. Recent reports show that butter production for September was up 31% compared to last year and is the largest single production month in over 60 years. Even with this increase butter inventories hit the 18th straight month of being below the 5 year average. Even with the large increase in production the total inventories were only up 16% versus the prior year and inventories fell 9% from the previous month.
EGGS Market is steady. Retail demand is steady with advertising reported as spotty. Expectations are for advertising to really pick up as we approach Thanksgiving. Foodservice demand is seasonally average. Total egg inventories are up 11.6% versus prior week. Current inventories are at their highest levels of the past 5 years.
FRUITS & VEGETABLES
Bean Market Update:
Pintos: harvest is complete, marking the smallest crop due to planted acres and yield since the USDA/NASS began keeping records. This market is firm due to lack of grower selling, even at elevated values. There are limited supplies available for traditional export channels such as the Dominican Republic, Angola, and Mexico.
Black Beans: continued demand from Mexico has kept this market firm.
Navy Beans: this class was most impacted by the frost late September in North Dakota due to the longer growing season of the variety in addition to the late planting this spring. There was significant yield loss due to frost damage. This class remains very firm with limited availability.
Great Northerns: growers are completing harvest this week, due to the late plantings this spring. Yields were lower than average. With the limited world supply of white beans, this market remains firm.
Blackeye Peas: harvest is approximately 60% complete in California, with yields slightly lower than average. With the majority of the Texas acres non-harvestable, this market is very, very strong with limited availability.
Small Reds, Pink Beans, and Kidney Beans: remain steady with limited activity.
Peas and Lentils remain steady as growers merchandise their crop to keep up with demand.
Frozen Vegetables
Based on the industry’s assessment of the crop and the lack of carryover in peas and corn, expect to see tight supply and significant price increases in the next 30 – 45 days.
Rice
U.S. rice production in 2011/12 is forecast at 186.9 million CWT, making it the smallest crop since 1998/99. The decline is entirely due to a decrease in yield. Long grain production is forecast at 116.8 million CWT, making this the smallest crop since 1996/97. Combined medium and short grain production is still a record forecast at 70.1 million CWT. Domestic and residual use for 2011/12 is at 127.0 million CWT. Total rice exports are projected at 91.0 million CWT, down 2.0 million CWT from the September forecast. Long grain ending stocks are projected at 16.9 million CWT, 18.7 million CWT lower than last year. Rice harvest in all six states is 82% complete as of October 16. California is only 29% complete versus a 79% historical average. India’s lifting of its export ban on non-basmati rice has kept a lid on global prices. They are $100 per ton lower than Viet prices and $125 per ton lower than Thai prices. The flooding in Thailand, while devastating, is not expected to have much of an impact on the global market. There is time to replant and the government is going to take the rice off the market with their intervention plan.
SOY Another steady week in soy oil. Greece and European debt issues were the primary focus early in the week. Corn was a market influencer. Thursday saw an upturn in price of soy oil on fund activity.
Wheat Russian drought recovery and high domestic prices leading to more plantings have helped to create a well stocked inventory of wheat supplies. Exports should be rather stagnant due to higher prices. As harvest continues to develop there is the real possibility of dramatic price decreases. Should corn prices remain high wheat could be substituted as livestock feed and offset some of the declines. Harvest are weather are key.
COFFEE The coffee market remains very unstable. While the coffee commodity pricing has increased slightly, the daily market prices continue to be very volatile due to world economic issues. Outlook is that pricing will remain firm to slightly higher. JUICES
Apple Market is quiet while waiting on new crop from China. Projections are for a good crop. No real price direction at this time.
Grapefruit Product demand is up and the crop is down. Pricing will remain very firm to higher.
Orange Pricing remains firm to possibly moving higher. Most factories running at full capacity.
NON FOODS
Resin The market remains very soft, resin manufactures continue to push for increases but the demanded is just not there. This market mainly effects Can Liners & plastic disposables.
Paper-Pulp Market price is flat to slightly down, but still higher than same period last year and pricing remains firm as we have seen all year.
Aluminum Markets continue to be in turmoil with the world economic outlook and consumer confidence falling to a two year low. At the moment, it is impossible to predict future trends. Market remains steady to possibly higher depending on economic news. Market Report W e e k o f O c t o b e r 9 , 2 0 1 1 APPLES The Washington market is level. New crop supplies have increased to adequate. California prices remain high; stocks are tightening, as the season is ending. Overall quality is very good: texture is crunchy and flavor is sweet. ASPARAGUS Prices are stable. Stocks are average in Baja, Mexico; supplies are sufficient in Peru. Quality is very good in both regions: flavor is grassy. AVOCADOS The California market is high; the season has ended and fruit is extremely limited. Chilean and Mexican prices have inched down to level; supplies are becoming more plentiful. Stocks from Peru are adequate; the market is steady. Overall quality is very good: flavor is best in Peru, followed by Mexico and Chile. BELL PEPPERS Prices are steady. Stocks are sufficient in California. Supplies are limited, but increasing in Georgia. Overall quality is very good in both areas. BLACKBERRIES The California and Oregon markets are elevated. Supplies are limited; cold weather will further decrease stocks. Quality is average: bleeding and bruising are minor problems, but flavor remains sweet. New crop Mexican berries will become available next week; expect high prices. BLUEBERRIES Prices are climbing in Canada, Oregon, and Washington; expect tight stocks through mid-October. Quality is good in these areas: shriveling is a slight problem. New crop Argentine berries are on the market. Prices are high; supplies are limited, but will increase as the season progresses. Quality is very good: flavor is sweet. BROCCOLI The market is low. California supplies are adequate. Rain and lower temperatures are forecasted this week; but prices should hold steady. Mexican stocks are abundant. Overall quality is very good. CANTALOUPE Prices are level. Limited quantities of new crop melons are available in Arizona. Stocks in California’s San Joaquin Valley are beginning to tighten; the season will end in mid- October. Mexican melons (into Nogales, Arizona) will be on the market at the end of the month. Quality is very good in all areas; Brix/sugar levels are highest in Arizona (11- 13%—very sweet). CAULIFLOWER The California market is stable at low levels; Salinas Valley supplies are abundant. Rain is predicted later this week, but not expected to affect prices. Quality is very good: flavor is mildly nutty. CELERY California prices are steady near the bottom; stocks are plentiful, especially 24- and 30-count sizes. Although it’s expected to rain later this week, the market should not be affected. Quality is excellent: stalks are crisp and color is deep green. CUCUMBERS The market is inching down to average; supplies remain tight, but are starting to increase in Georgia, North Carolina, and Mexico (into California and Nogales). Canadian hot-house stocks will remain limited until the season ends later this month. Mexican hot-house supplies are ample. Overall quality is very good: flavor is mild, yet fresh. GRAPES California green and red seedless prices are unchanged; supplies are ample. Quality is very good: sugar levels are high. GREEN LEAF/VARIETY LETTUCE The California market is low; ideal weather has increased stocks. Rain is predicted later this week; prices may inch up slightly. Quality is very good: leaves are crisp and weights are high. HONEYDEW Prices are steady. Although the California season will end by mid-October, supplies are adequate. Harvesting has begun in Arizona; early season stocks are tight, but will increase. Mexican supplies (into Nogales and South Texas) remain limited. Overall quality is very good: sugar levels are high. ICEBERG LETTUCE The California market is weak; Salinas Valley stocks are ample. Rain is forecasted for this week. Quality is good. Weights are high, but expected to decrease if growers have to trim rain-damaged leaves. The harvesting transition to Huron, California will start the week of October 17. LEMONS Prices are level. California fruit from District Two (Southern California) and District Three (Arizona/California desert) is limited, but will increase as both seasons progress. Quality is good. Mexican stocks are adequate. Quality is very good.
ONIONS The red and yellow onion markets are stable; supplies are average in Colorado, Idaho, Oregon, Utah, and Washington. Overall quality is very good: skins are cured and flesh is juicy. ORANGES California prices are average, but expected to rise. The Valencia season is ending; supplies are starting to tighten. Quality is good: sugar content is high, but softness is a minor problem. New crop Navels will become available in November. Limited quantities of Florida juice and Navel stocks are available; the market is firm, but will ease. Quality is good. Texas Navels will be on the market in November. PEARS The market is unchanged; stocks are adequate in California and Washington. Quality is very good. PINEAPPLE Prices are steady; supplies are sufficient in Costa Rica, Ecuador, and Mexico. Overall quality is very good: sugar levels are high and flesh is juicy. POTATOES The market is stable in Idaho, Michigan, Nebraska, Washington, and Wisconsin. Colorado prices are low. Storage stocks are abundant; Norkotahs are more plentiful than Burbanks. Quality is very good in all regions.
RASPBERRIES Prices are level. The California season is winding down; cold weather is tightening fruit. New crop harvesting has started in Mexico, but supplies are limited. Overall quality is good. ROMAINE The market is average. California stocks are sufficient, but rain may tighten supplies. Colorado stocks are limited. Quality is good in both areas. SPRING MIX California prices are unchanged. Although supplies are adequate, they may decrease later this week if rain delays harvesting and causes quality problems. Quality is very good.
SQUASH The California market is starting to ease; supplies are increasing in Santa Maria, but scarce in the San Joaquin Valley. Quality is good. Prices are up in Georgia; although cool weather has limited stocks, they should increase next week. Quality is average. The Mexican market is high; stocks (into Nogales) are tight, as harvesting has just begun. Quality is excellent. STRAWBERRIES California prices are starting to rise; rain is tightening stocks in Watsonville. Quality is average: advise ordering for quick turns. New crop harvesting has begun in Oxnard and Santa Maria. TOMATOES The California mature green market remains low; fruit is plentiful. Rain is expected this week, which may tighten supplies and increase prices. Mexican prices are steady; stocks (into San Diego, California) are adequate. The Virginia market is up; supplies are sporadic. Overall quality is good. TREE FRUIT California nectarine and peach prices are high; stocks are extremely tight, as the season is ending. The plum market is steady; adequate supplies will remain available through October. Overall quality is average. The new crop Chilean season will start in early December. WATERMELON The market is high. California and East Coast supplies are limited. New crop Mexican harvesting has started; stocks are tight. Quality is good in all areas. Market Report September 30, 2011 FRESH CROP REPORT APPLES ASPARAGUS AVOCADOS BELL PEPPERS BLACKBERRIES BLUEBERRIES BROCCOLI CANTALOUPE CAULIFLOWER CELERY CUCUMBERS GRAPES GREEN LEAF/VARIETY LETTUCE HONEYDEW ICEBERG LETTUCE LEMONS ONIONS ORANGES PEARS PINEAPPLE POTATOES RASPBERRIES ROMAINE SPRING MIX SQUASH March 4, 2011 Produce California Lettuce & Mixed Vegetables Iceberg Lettuce: Growing conditions have improved, however the damage has been done to the iceberg crop, with no rebound in production volume expected through the end of the desert harvest season in late March. Prices will continue at extreme levels and quality will be poor, with heavy damage from epidermal blistering and peeling. Processed Salad: Salad processors are in an extreme deficit supply situation, unable to load trucks in a timely manner, and filling orders only at the 50 percent level. Force Majeure contract price increases continue to escalate. Romaine: The same scenario as exists with iceberg…blistering and peeling, small heads from which many damage leaves have been removed, and the resulting lightweight cartons. Low yields will continue. Prices extreme, quality poor. Romaine Hearts: Epidermal peeling is also an issue, although to a lesser degree compared to commodity romaine. An occasional misshapen head is present in the pack. Quality issues will continue through March. Prices extreme, quality fair. Green Leaf: Freeze damage present, although not to the extent that iceberg and romaine have been affected. Prices high, quality fair. Broccoli (bunched): The market is trending higher as we near the transition period for the harvest moving from the desert northward to Central California…beginning in mid-March. Prices high, quality good. Pin rot and water damage present in broccoli from Central California. Broccoli (crowns): Priced at a substantial premium compared to bunched broccoli. Prices high, quality good. Cauliflower: The market advanced again this week, with production levels down by 10 percent compared to February 2010. Prices high, quality good. Celery: The market firmed this week, with buyers stepping in at lower price levels. Quality is an issue, with blistering and peeling present in desert celery and pith in Oxnard. Prices high, quality fair. Carrots: Large sized carrots (jumbo, table) continue to be in extremely limited supply due to low yields during the harvest transition from the Southern San Joaquin Valley to the Imperial Valley. This shortage includes carrot sticks and carrot chunks (2 inch, 4 inch). No relief is expected until April. Shippers are unable to fill orders in full. Prices extreme, quality good. Artichokes: The cold winter has slowed plant growth; the size profile is heavy to the smaller sizes (36, 48, large loose)…these sizes offer the best value. Most samples are now frost-free. Prices moderate, quality good. Plentiful supplies on all sizes will become available by April. Asparagus: Prices remain high for late season production in Northern Mexico. Quality good. New crop harvesting in Central California has been set back by recent cold, wet growing conditions. Parsley (curly): Adequate availability, prices moderate, quality good. Parsley (Italian): Adequate availability, prices moderate, quality good. Spinach (bunched): Production beginning to recover…prices high, quality good. Kale (green): Good availability. Prices moderate, quality good. Kale (flowering): Steady availability for growers in the desert districts. Cilantro: Increasing supplies. Prices moderate, quality good. Green Onions: The market is gradually easing with improved weather conditions in Mexico, however planted acreage is below average. A meaningful increase in production is not expected until late March. Prices high, quality good. Leeks: Availability is adequate, prices high, quality good. Green Cabbage: Tight availability, prices high, quality good. Red Cabbage: Adequate availability, prices moderate, quality good. Bok Choy: Adequate supplies, prices high. Napa: Light supplies, prices high. Snow peas: Good availability…prices moderate, quality good. Garlic: Tight supplies, high prices…Reduced imports and poor quality from China. No relief until late summer. Spring Mix: Spring mix availability is gradually improving…growers have been able to re-introduce various red components into the mix. Prices high, quality good. Spinach (baby): Better availability, however occasional allocation still in effect, depending on the shipper. Arugula: Increasing production, adequate availability. Mache: Unavailable…quality poor. Berries Strawberries: Tight availability in the West…the harvest in Central Mexico is winding down and Oxnard continues with modest production volume. Prices high, quality fair. Plentiful availability for late season production in Florida. Raspberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blackberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blueberries: Late season harvest volume in Chile is decreasing…finishing by mid-April. New crop blueberries in Georgia and Florida will begin at that time. Still moderate supplies coming from Mexico. Prices high, quality good. California-Arizona Citrus Navel Oranges: Continued plentiful availability for California Navel oranges…no effects from cold weather or rain thus far. Prices low, quality excellent. Lemons: We are near the end of the season for desert lemons…the primary shipping district is now the San Joaquin Valley, with storage crop inventories for Ventura County growers being replenished for the summer shipping season. Good availability on all sizes, with best values being offered on the large sizes (75, 95, 115). Prices moderate, quality excellent. Limes (Persian): The market for large sizes is slowly easing, with much better availability and favorable prices for the small sizes (230, 250). Growers harvesting limes as early as possible in the growth cycle to take full advantage of current high market. Harvest area transition in Mexico to occur in late March. Prices high-to-extreme, quality good. Grapefruit: Good availability on Desert Rio Red variety in California & Arizona and Texas Rio Star in Texas. Prices low-to-moderate, quality excellent. Cara Cara Oranges: Now in peak season production. Moro Oranges: Production winding down…size profile heavy to 113’s & smaller. Mandarins: Good availability for medium and large sizes (24’s-36’s). Pummelos: Nearing the end of the season…best value on smaller sizes (14-18). Prices moderate, quality good. Minneola Tangelos: Season finished for desert growers…now shipping from Central & Southern California. Prices moderate, quality good. Pineapple: Production is beginning to increase in Costa Rica, Guatemala, Honduras and Panama…good availability is in the forecast for Easter. Mexican pineapples are also available. Melons Cantaloupes: Steady availability, market firm…prices high, quality excellent. Honeydews: Tight availability from Central America…Mexican harvesting getting underway…not enough volume to influence the market. Prices high, quality excellent. Watermelons: Increasing production from growers in the Guadalajara region in Southern Mexico. Prices moderate, quality excellent…both seedless and seeded varieties. Washington Apples and Pears Red Delicious: Good demand; market well supported by exports. Yields very good considering difficult growing conditions during spring and summer 2010. Markets are firm most sizes, expected to remain steady going into spring. Golden Delicious: Good availability, prices moderate. Bosc Pears: Good availability, prices moderate-to-high. D’Anjou Pears: Good availability, prices moderate-to-high. Bartlett Pears: New crop from Chile now available, prices moderate-to-high. Grapes & Soft Fruit Red Seedless Grapes: Supplies will be tight through late March with the transition from Flame seedless variety to Crimson. Prices moderate, quality good. Green Seedless Grapes: Availability increasing for Thompson seedless. Prices moderate, quality good. Kiwi (California): The first shipment of Chilean kiwi is now on the water, arriving in late March. California kiwi will continue to be available in the interim…transition will be smooth. Prices moderate, quality good. Avocados Hass: Calavo reports that the Mexican harvest is 2/3 complete, and the remaining 1/3 must last through July. The California Hass crop is 50 percent smaller compared to 2010. Chilean season is finished. The market continues to push higher on all sizes, with the greatest increases on the 48’s. Prices extreme, quality good. Eastern & Western Vegetables Green Bell Peppers: Limited availability and extreme prices on jumbo and extra large. Best availability on choice grade. Quality fair. Red Bell Peppers: Demand increasing, market firm. Prices moderate, quality good. Cucumbers: Tight supplies, production in Mexico winding down for the remainder of March. Prices high, quality fair. Green Beans: Good availability from growers in Florida and Central America. Prices moderate. Tight availability in Nogales. Prices extreme, quality poor. Eggplant: unavailable in Nogales and Florida. Product availability returning in April. Squash: Zucchini: Tight availability in Florida and Nogales. Prices extreme. Quality fair. Yellow: Plentiful supplies in Florida, adequate in Nogales. Florida: prices low, quality good. Nogales: prices high, quality fair. Tomatoes Round: The effects are now being manifested from the freeze that occurred in Mexico during early February…acreage has been lost and production is on the decline…causing upward pressure in the market. Storage inventories are depleted…the upward price trend will continue. Prices high, quality fair. Roma: Same as round tomatoes. Cherry: Same as round tomatoes. Grape: Same as round tomatoes. Potatoes (Idaho) Russets: Availability has tightened considerably for the US #2 Idaho Russets, with a sharp advance in the market this week. Prices are also on the rise for carton packed, small sized potatoes (80, 90, 100). We can expect to see continued subtle to sharp advances in prices on a weekly basis going forward. Prices high, quality good. Onions (Northwest) Yellow: Onions are in oversupply…Mexican growers in full production, supplying the southwestern and southeastern U.S. Packers of storage crop onions in the Northwest will continue to ship through the month of April. Prices low, quality good. Red: Red onions are in oversupply. Quality good, market low. White: Same as yellow onions. Soybean Futures The soybean complex has traded all over this week. The futures price started higher in response to ideas that U.S. soybeans out of the Pacific Northwest are once again competitive with Brazilian origin for the next few weeks. Surging soybean oil also helps as the idea of manufacturing bio-diesel will become profitable due to surging gasoline prices. The complex sold off sharply in response to the break in corn but managed to recover most of those losses by day's end with the exception of soybean meal. Basis levels for soybeans are mostly steady with the Gulf appearing a bit easier. March beans gain on the spread due to the lack of deliveries against the March contract. Forward spreads within the old crop do little, maybe a bit easier. Spreads within new crop firmed a bit, in part to the effort of new crop beans trying to secure acres for the upcoming season. If the acres are not contracted, beans within the U.S. will continue to tighten making the recent tight years pale in comparison. The technical look for soybeans and soybean meal is a bit bothersome. Soybeans and soybean meal match last Friday's highs and fail to follow through. The price action is suggesting an interim double top of the up flagging efforts from last week's lows. Business is expected to fade in the coming weeks/months as the South American new crop comes on line. This holds true for the soybean oil market as well. Soybean Oil The continued unrest will force drastic market swings such as we have seen in the last two weeks. Export sales continue to be noticeably higher which also contributes to the strong market. Outside markets continue to drive the upward trend seen in the soybean oil market. Look for this market to remain strong with occasional, short lived, small drops. Discuss forward strategy with your oil partner. Mideast/North African Tension, Energies Continued civil unrest in Libya and growing concern over oil supply disruptions sent energies higher. Libyan sources contend that oil production and shipments are down 50%, but industry sources suggest that production is down far more. It is thought that the ships that have been loaded in the last several days have been loaded with inventory accumulated prior to the civil unrest and that new oil is not being received from the oil fields. The Department of Energy released its weekly numbers on Wednesday. Crude Oil supplies were down 400,000 barrels for the week, up 4.7 million from a year ago. Total gasoline stocks dropped by 3.6 million barrels, up 2.8 million barrels from a year ago. Gasoline and oil stocks have been increasing mostly every week and gasoline prices at the pump are still going higher. We continue to believe that energy prices will continue to remain strong and find support on dips as long as civil unrest remains in the Middle East and North Africa. This unrest will have a direct affect on commodities traded daily. As long as this country is in disarray, expect commodities to remain strong.
Seafood News from the Gulf- The area of Federal Waters closed to fishing in the Gulf remains unchanged since February 1st. The current area closed to fishing remains at 1041 square miles. Gulf Shrimp- Market is steady to firm. Black Tiger Shrimp- Market is mixed. Several sizes are listed as firming with the exception of 16-20 and 21-25 Headless Shell On as these are listed as weaker. Inventories are listed as tighter while demand remains good. White Shrimp- Market is firming. 31-35 and smaller are listed as firming because of tighter inventories. Larger sizes are listed as steady. Salmon- Market is steady to firm. Replacement costs are noted as higher. King Crab- Market is firm. Snow Crab- Market is steady but firm. Inventories remain very light with a good demand. Warm Water Lobster Tails- Market is steady. Demand is listed as low. American Lobster Tails- Market is steady. Smaller sizes are reported to have limited supplies. Cod- Market is firm. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firming. Demand is listed as good. Pollock- Market is steady. Inventories are reported as good for a light to moderate demand. Whiting- Market is steady. Even though supplies are reported as very light, demand remains low and are keeping inventories in pace with demand. Domestic Catfish- Market is firm. Inventories remain a concern. Scallops- Market is steady. Inventories remain light with a demand listed as down. Tilapia- Market is steady but firm. Demand is listed as good with replacement costs listed as higher. Dairy Why are dairy prices continuing to rise? Weather issues- Drought in New Zealand has reduced their milk production. Heavy rains in Australia reduced their milk production. Weather issues in South America having impact on Dairy Market. Strong Demand from both Russia and China for dairy products. Low global inventories on dairy products. Higher international cheese prices. Increased global grain prices. Cheese-Market is firm. Pricing continued to climb for both the CME Block and the Barrel markets this week. Both markets are trending well above same time last year and the gap has continued to increase. Reports show that Mozzarella demand has remained strong recently. Butter- Market is firming. Pricing has continued to increase this week as Wednesday saw a sharp increase in market pricing. Pricing remains well above same time last year. Eggs Shell Eggs- Market is soft. Retail demand is listed as poor to fair. Reports show that more advertising is set for next week. Inventories are listed as long. Inventories are up 12% from last week. Egg Products- Market is steady. Beef Market is firm. Live cattle pricing continues to climb. Total beef production for last week was 1.5% lower than previous week. Packers have announced reduced hours for the near future which may lead to even tighter inventories. March is expected to be a tight month on availability. Grilling season is just around the corner and demand should seasonally increase as we get closer to summer. Futures are still showing firmer pricing as the year progresses. Chucks- Market is steady but firm. Rounds- Market is steady but firm. Earlier in the week saw pricing firm across the board while later in the week pricing remained more steady. Loins-Market is steady but firm. As with the rounds pricing advanced earlier this week and held its ground thru the end of the week. Upcoming grilling season is expected to put additional pressure on demand and pricing. Ribs- Market is firming. This market is expected to firm in pricing over the next few weeks. Grinds-Market is softening. Short term pricing has shown signs of weakening. Long term expectations show there could be some strength come back into pricing as we get closer to grilling season. Pork Market is steady. Total pork production was up .9% last week versus the week before and steady with same time last year. Live prices continue to trend higher than same time last year with futures showing pricing higher as we near summer. Exports have eased after the strong demand the past several weeks. Bellies- Market is firm. Report show pricing continuing to remain above last year as we head into the summer months. Hams- Market is steady but firm. Exports have eased but Easter demand is holding pricing in line. Demand is listed as average for this time of the year. Butts- Market has softened. Pricing has softened thru the week. Export demand is down and reports show that pricing could soften over the next few weeks if that demand does not pick back up. Ribs- Market is steady. Loins- Market is firm. Reports show heavy promoting over the next few weeks which should help increase demand. Chicken The markets remain on solid ground. With higher priced proteins, chicken has become an alternative source. High corn prices and transportation costs have also played a part in the market levels we’ve seen this week. WOGs and whole birds are short of full needs, and remain harder to secure. Markets this week have seen daily increases as these items have become tighter. This trend could continue into next week. Whole breast availability is limited and trade at current levels. Boneless and tenders also trade at higher levels as these items are limited in supply. Dark meat trades at steady levels to higher. Leg quarters, legs and thighs are adequate for current needs and are moving at current market levels. Wings are starting to see some interest as market levels dropped the last few weeks. This week though this market has remained steady. Turkey The turkey markets are described as better than seasonal as inquires are better than the norm for the first of March. Overall most items are trading at full market or better. Whole birds have traded at full market or better for end of March into April, but limited or no availability for current ship appears to be available. Fresh and frozen breast meat, thigh meat, drums and wings appear to be the most sought after items on the list. The turkey complex is sitting in a current position that leads most to believe it will remain solid through the spring.
Canned fruits and vegetables As the year progresses things are tightening and beets are an item to watch in canned goods. At this point restrictions have not been placed but movement is being closely monitored and restrictions could come at any time. For canned goods in general fairly well balanced inventories and the coming inflation concerns canners are not offering the kind of deals seen this time last year. Pasta Wheat futures and finished goods demand are the primary drivers of pasta prices. Increases in semolina prices to manufactures are continuing to pressure suppliers to increase prices on finished pasta goods. Frozen Vegetables The talk this week in frozen has been almost in unison across suppliers. Inflation, inflation, inflation. But there is a catch that makes it even worse. For about a year and half pricing for frozen vegetables has been deflated. Suppliers are expecting drastic price increases with the new pack that would bring pricing not just to pre deflation levels but to even higher levels due to increases in nearly all cost inputs. Market Report
Inflation for 2011 Expect 5-7 % inflation over the next 12-18 months for Foodservice as well as Retail. Many global factors driving costs: Weak US Dollar Rising Energy Prices Increased Support for Ethanol – driving corn and feed prices up. High prices offered for Corn , reducing the planting acreage for other products. Strong Global GDP (led by China) Shortfall in World Wheat Production Commodity Speculation Seafood Gulf Shrimp- Market is steady. Inventory on larger sizes remains tight and pricing on the larger sizes is listed as firm. Other sizes are listed as steady but pricing varies from supplier to supplier. Black Tiger Shrimp- Market is steady. White Shrimp- Market is firming. Larger count shrimp are listed as steady. 31-35 and smaller HL/SO are listed as firm with smaller sizes showing additional firming in pricing. Mexican Shrimp- Market is steady. U15 and larger inventories are in tighter supply and pricing is firmer. Warm Water Lobster Tails- Market is steady. North American Lobster Tails- Market is steady to softening. Mid-sized products are listed as weak with pricing varying between suppliers. Small sizes are steady but inventories are tight. Salmon- Market is firming. Inventories are listed as light for the entire category. Demand is reported as good. King Crab- Market is firm. Inventories remain tight and replacement product is listed as very limited. Snow Crab- Market is firm. Inventories remain tight with 5-8’s being reported as being very tight. Alaskan Opilio Crab- Market is firm. Supplies are tight for a good demand. Dungeness Crab- Market is firm. Inventories remain light for an active demand. Pangasius- Market is firming. Reports show that replacement costs continue to rise. Demand is listed as good. Domestic Catfish- Market is firm. Reports show that availability is a concern as demand is outpacing supplies. Tilapia- Market is steady but firm. Scallops- Market is steady but firm. Inventories remain light. Cod- Market is firming. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firmer. Demand is listed as good. Pollock- Market is steady. Whiting- Market is steady. Inventories remain light but are keeping pace with a light demand. Dairy Cheese- Market is firming. The CME markets continued to firm again this week. Pricing is now at its highest point for the year thus far. Demand remains good. Reports show that milk supplies are fairly tight worldwide and are putting additional pressure on the cheese markets. Butter- Market is softening. Butter production is up and is helping to slowly build inventories. Inventories last week increased by another 1.6 million lbs. Total inventories still remain less than half the amount of same time last year(20.4 versus 56.7 million lbs). Eggs Shell Eggs- Market is soft. Total egg inventories increased by another 4% from last week. Retail demand is listed as fair. Foodservice demand is listed as good. Jumbos and Large are listed in good supply. Egg Products- Market is steady. Beef Market is firmer. Live prices pushed higher last week and are now at levels not seen since 2003. Higher grain pricing remains a concern for the protein categories as feed costs are expected to increase. Overall beef production was reported as up just over 2% from previous week. Demand is listed as good. Grinds- Market is steady to softer. Demand remains good and product remains in tight supply. Pricing still remains well above same time last year. Ribs- Market is steady. Loins- Market is steady to firmer. Increased demand is putting additional pressure on the category. Chucks- Market is steady to firmer. Continued increased demand and additional exports continue to put pressure on pricing. Rounds- Market is steady to firmer. Demand is listed as good. Chucks- Market is steady to firmer. Pork Market is firm. Pork production was down last week. Total production was down about 3.3% from previous week. Futures continue to show firm pricing for the category as the year progresses. Bellies- Market is steady but firm. Inventories remain tight with a good demand. Forecasts shows pricing firming over the next few weeks. Reports show that the reason the current market has held steady is that availability is so tight that very little trading is being reported. Hams- Market is firm. Demand is reported as good. Exports continue to be strong and combined with reduced harvests are helping push pricing higher. Loins- Market is firm. Demand is listed as good. Butts- Market is firm. Exports remain very strong. Ribs- Market is steady. Demand is listed as softer. Wheat Wheat futures prices traded lower this week, but basis premium levels are firm to higher, leaving flour prices mostly flat. China’s winter wheat crop received some rain, and their government called supplies adequate; however reliable information about Chinese agricultural production can be difficult to obtain. Forecasts for important wheat growing regions of China and the U.S. are calling for dryer weather through the end of this month. It was thought the U.S. had lost export business to lower-priced competitors, but with the drop in futures prices this trend could be quickly reversed.
Soybean Oil This market has been a rollercoaster this week. Dropping on Thursday after rebounding from losses earlier in the week. The Libyan unrest continues to have an effect on the soybean oil market, as well as, other energy markets. US crude is up more than $4.00 in early trading. Gains in crude oil would normally be supportive for the oilseed markets, but the global political uncertainty taking crude oil higher is also making investors more cautious, causing them to exit some of the riskier agricultural markets. The overall up and down turn of the market this week makes it extremely difficult to book/buy with any certainty. Monitor trends closely and buy to meet immediate needs. Chicken Demand has been mostly basic with the majority of inquires seasonal. In general most inventory levels are in balance with current demand, for the exception of a few items. WOGs and whole birds are one of those items where inventory has become tight, with inquiries holding at market levels. Boneless and tenders are well supported, with tenders trading at full market. Whole breast are steady. Dark meat items such as legs, leg quarters, and thighs are tight with markets levels moving up this week. Wings continue to be weak, with this week’s market reflecting suppliers wanting to clear out some inventory. Turkey Markets are pretty active, more so then what we typically see this time of year. Undertone is strong on most items. Whole birds have seen a slight increase in markets this week as product becomes harder to secure. Raw material demand is active as is both fresh and frozen MST. Wings appear to be trending higher, as tom and hen two joints rate a full steady undertone with supplies less than adequate. Fresh breast meat has been harder to secure with potential of possible market increases. This may also be true for tenders as well. Thigh meat and drums Is limited in current availability.
Dry Beans: The dry market overall continues to see firm pricing. As with other crops, the availability of acreage for planting is affecting dry bean pricing. Pinto and black beans are both expected to continue to firm. Greater than normal export opportunities are present for black beans that are contributing to the price pressure. Imports Limited supply is still the primary concern for imports. Mandarin oranges are especially hard hit as contracts in China are not being fulfilled which puts pressure on products here in the US. with continued demand prices will continue to rise. Frozen Vegetables Weather issues have severely limited the flow of products like okra, broccoli, cauliflower, and asparagus into the US. The availability of acreage for planting of crops in the US is a major concern. Every indication is that with current demand, frozen vegetable pricing will continue to climb. Market Report Produce California Lettuce & Mixed Vegetables Iceberg Lettuce: Growing conditions have improved, however the damage has been done to the iceberg crop, with no rebound in production volume expected through the end of the desert harvest season in late March. Prices will continue at extreme levels and quality will be poor, with heavy damage from epidermal blistering and peeling. Processed Salad: Salad processors are in an extreme deficit supply situation, unable to load trucks in a timely manner, and filling orders only at the 50 percent level. Force Majeure contract price increases continue to escalate. Romaine: The same scenario as exists with iceberg…blistering and peeling, small heads from which many damage leaves have been removed, and the resulting lightweight cartons. Low yields will continue. Prices extreme, quality poor. Romaine Hearts: Epidermal peeling is also an issue, although to a lesser degree compared to commodity romaine. An occasional misshapen head is present in the pack. Quality issues will continue through March. Prices extreme, quality fair. Green Leaf: Freeze damage present, although not to the extent that iceberg and romaine have been affected. Prices high, quality fair. Broccoli (bunched): The market is trending higher as we near the transition period for the harvest moving from the desert northward to Central California…beginning in mid-March. Prices high, quality good. Pin rot and water damage present in broccoli from Central California. Broccoli (crowns): Priced at a substantial premium compared to bunched broccoli. Prices high, quality good. Cauliflower: The market advanced again this week, with production levels down by 10 percent compared to February 2010. Prices high, quality good. Celery: The market firmed this week, with buyers stepping in at lower price levels. Quality is an issue, with blistering and peeling present in desert celery and pith in Oxnard. Prices high, quality fair. Carrots: Large sized carrots (jumbo, table) continue to be in extremely limited supply due to low yields during the harvest transition from the Southern San Joaquin Valley to the Imperial Valley. This shortage includes carrot sticks and carrot chunks (2 inch, 4 inch). No relief is expected until April. Shippers are unable to fill orders in full. Prices extreme, quality good. Artichokes: The cold winter has slowed plant growth; the size profile is heavy to the smaller sizes (36, 48, large loose)…these sizes offer the best value. Most samples are now frost-free. Prices moderate, quality good. Plentiful supplies on all sizes will become available by April. Asparagus: Prices remain high for late season production in Northern Mexico. Quality good. New crop harvesting in Central California has been set back by recent cold, wet growing conditions. Parsley (curly): Adequate availability, prices moderate, quality good. Parsley (Italian): Adequate availability, prices moderate, quality good. Spinach (bunched): Production beginning to recover…prices high, quality good. Kale (green): Good availability. Prices moderate, quality good. Kale (flowering): Steady availability for growers in the desert districts. Cilantro: Increasing supplies. Prices moderate, quality good. Green Onions: The market is gradually easing with improved weather conditions in Mexico, however planted acreage is below average. A meaningful increase in production is not expected until late March. Prices high, quality good. Leeks: Availability is adequate, prices high, quality good. Green Cabbage: Tight availability, prices high, quality good. Red Cabbage: Adequate availability, prices moderate, quality good. Bok Choy: Adequate supplies, prices high. Napa: Light supplies, prices high. Snow peas: Good availability…prices moderate, quality good. Garlic: Tight supplies, high prices…Reduced imports and poor quality from China. No relief until late summer. Spring Mix: Spring mix availability is gradually improving…growers have been able to re-introduce various red components into the mix. Prices high, quality good. Spinach (baby): Better availability, however occasional allocation still in effect, depending on the shipper. Arugula: Increasing production, adequate availability. Mache: Unavailable…quality poor. Berries Strawberries: Tight availability in the West…the harvest in Central Mexico is winding down and Oxnard continues with modest production volume. Prices high, quality fair. Plentiful availability for late season production in Florida. Raspberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blackberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blueberries: Late season harvest volume in Chile is decreasing…finishing by mid-April. New crop blueberries in Georgia and Florida will begin at that time. Still moderate supplies coming from Mexico. Prices high, quality good. California-Arizona Citrus Navel Oranges: Continued plentiful availability for California Navel oranges…no effects from cold weather or rain thus far. Prices low, quality excellent. Lemons: We are near the end of the season for desert lemons…the primary shipping district is now the San Joaquin Valley, with storage crop inventories for Ventura County growers being replenished for the summer shipping season. Good availability on all sizes, with best values being offered on the large sizes (75, 95, 115). Prices moderate, quality excellent. Limes (Persian): The market for large sizes is slowly easing, with much better availability and favorable prices for the small sizes (230, 250). Growers harvesting limes as early as possible in the growth cycle to take full advantage of current high market. Harvest area transition in Mexico to occur in late March. Prices high-to-extreme, quality good. Grapefruit: Good availability on Desert Rio Red variety in California & Arizona and Texas Rio Star in Texas. Prices low-to-moderate, quality excellent. Cara Cara Oranges: Now in peak season production. Moro Oranges: Production winding down…size profile heavy to 113’s & smaller. Mandarins: Good availability for medium and large sizes (24’s-36’s). Pummelos: Nearing the end of the season…best value on smaller sizes (14-18). Prices moderate, quality good. Minneola Tangelos: Season finished for desert growers…now shipping from Central & Southern California. Prices moderate, quality good. Pineapple: Production is beginning to increase in Costa Rica, Guatemala, Honduras and Panama…good availability is in the forecast for Easter. Mexican pineapples are also available. Melons Cantaloupes: Steady availability, market firm…prices high, quality excellent. Honeydews: Tight availability from Central America…Mexican harvesting getting underway…not enough volume to influence the market. Prices high, quality excellent. Watermelons: Increasing production from growers in the Guadalajara region in Southern Mexico. Prices moderate, quality excellent…both seedless and seeded varieties. Washington Apples and Pears Red Delicious: Good demand; market well supported by exports. Yields very good considering difficult growing conditions during spring and summer 2010. Markets are firm most sizes, expected to remain steady going into spring. Golden Delicious: Good availability, prices moderate. Bosc Pears: Good availability, prices moderate-to-high. D’Anjou Pears: Good availability, prices moderate-to-high. Bartlett Pears: New crop from Chile now available, prices moderate-to-high. Grapes & Soft Fruit Red Seedless Grapes: Supplies will be tight through late March with the transition from Flame seedless variety to Crimson. Prices moderate, quality good. Green Seedless Grapes: Availability increasing for Thompson seedless. Prices moderate, quality good. Kiwi (California): The first shipment of Chilean kiwi is now on the water, arriving in late March. California kiwi will continue to be available in the interim…transition will be smooth. Prices moderate, quality good. Avocados Hass: Calavo reports that the Mexican harvest is 2/3 complete, and the remaining 1/3 must last through July. The California Hass crop is 50 percent smaller compared to 2010. Chilean season is finished. The market continues to push higher on all sizes, with the greatest increases on the 48’s. Prices extreme, quality good. Eastern & Western Vegetables Green Bell Peppers: Limited availability and extreme prices on jumbo and extra large. Best availability on choice grade. Quality fair. Red Bell Peppers: Demand increasing, market firm. Prices moderate, quality good. Cucumbers: Tight supplies, production in Mexico winding down for the remainder of March. Prices high, quality fair. Green Beans: Good availability from growers in Florida and Central America. Prices moderate. Tight availability in Nogales. Prices extreme, quality poor. Eggplant: unavailable in Nogales and Florida. Product availability returning in April. Squash: Zucchini: Tight availability in Florida and Nogales. Prices extreme. Quality fair. Yellow: Plentiful supplies in Florida, adequate in Nogales. Florida: prices low, quality good. Nogales: prices high, quality fair. Tomatoes Round: The effects are now being manifested from the freeze that occurred in Mexico during early February…acreage has been lost and production is on the decline…causing upward pressure in the market. Storage inventories are depleted…the upward price trend will continue. Prices high, quality fair. Roma: Same as round tomatoes. Cherry: Same as round tomatoes. Grape: Same as round tomatoes. Potatoes (Idaho) Russets: Availability has tightened considerably for the US #2 Idaho Russets, with a sharp advance in the market this week. Prices are also on the rise for carton packed, small sized potatoes (80, 90, 100). We can expect to see continued subtle to sharp advances in prices on a weekly basis going forward. Prices high, quality good. Onions (Northwest) Yellow: Onions are in oversupply…Mexican growers in full production, supplying the southwestern and southeastern U.S. Packers of storage crop onions in the Northwest will continue to ship through the month of April. Prices low, quality good. Red: Red onions are in oversupply. Quality good, market low. White: Same as yellow onions. Soybean Futures The soybean complex has traded all over this week. The futures price started higher in response to ideas that U.S. soybeans out of the Pacific Northwest are once again competitive with Brazilian origin for the next few weeks. Surging soybean oil also helps as the idea of manufacturing bio-diesel will become profitable due to surging gasoline prices. The complex sold off sharply in response to the break in corn but managed to recover most of those losses by day's end with the exception of soybean meal. Basis levels for soybeans are mostly steady with the Gulf appearing a bit easier. March beans gain on the spread due to the lack of deliveries against the March contract. Forward spreads within the old crop do little, maybe a bit easier. Spreads within new crop firmed a bit, in part to the effort of new crop beans trying to secure acres for the upcoming season. If the acres are not contracted, beans within the U.S. will continue to tighten making the recent tight years pale in comparison. The technical look for soybeans and soybean meal is a bit bothersome. Soybeans and soybean meal match last Friday's highs and fail to follow through. The price action is suggesting an interim double top of the up flagging efforts from last week's lows. Business is expected to fade in the coming weeks/months as the South American new crop comes on line. This holds true for the soybean oil market as well. Soybean Oil The continued unrest will force drastic market swings such as we have seen in the last two weeks. Export sales continue to be noticeably higher which also contributes to the strong market. Outside markets continue to drive the upward trend seen in the soybean oil market. Look for this market to remain strong with occasional, short lived, small drops. Discuss forward strategy with your oil partner. Mideast/North African Tension, Energies Continued civil unrest in Libya and growing concern over oil supply disruptions sent energies higher. Libyan sources contend that oil production and shipments are down 50%, but industry sources suggest that production is down far more. It is thought that the ships that have been loaded in the last several days have been loaded with inventory accumulated prior to the civil unrest and that new oil is not being received from the oil fields. The Department of Energy released its weekly numbers on Wednesday. Crude Oil supplies were down 400,000 barrels for the week, up 4.7 million from a year ago. Total gasoline stocks dropped by 3.6 million barrels, up 2.8 million barrels from a year ago. Gasoline and oil stocks have been increasing mostly every week and gasoline prices at the pump are still going higher. We continue to believe that energy prices will continue to remain strong and find support on dips as long as civil unrest remains in the Middle East and North Africa. This unrest will have a direct affect on commodities traded daily. As long as this country is in disarray, expect commodities to remain strong.
Seafood News from the Gulf- The area of Federal Waters closed to fishing in the Gulf remains unchanged since February 1st. The current area closed to fishing remains at 1041 square miles. Gulf Shrimp- Market is steady to firm. Black Tiger Shrimp- Market is mixed. Several sizes are listed as firming with the exception of 16-20 and 21-25 Headless Shell On as these are listed as weaker. Inventories are listed as tighter while demand remains good. White Shrimp- Market is firming. 31-35 and smaller are listed as firming because of tighter inventories. Larger sizes are listed as steady. Salmon- Market is steady to firm. Replacement costs are noted as higher. King Crab- Market is firm. Snow Crab- Market is steady but firm. Inventories remain very light with a good demand. Warm Water Lobster Tails- Market is steady. Demand is listed as low. American Lobster Tails- Market is steady. Smaller sizes are reported to have limited supplies. Cod- Market is firm. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firming. Demand is listed as good. Pollock- Market is steady. Inventories are reported as good for a light to moderate demand. Whiting- Market is steady. Even though supplies are reported as very light, demand remains low and are keeping inventories in pace with demand. Domestic Catfish- Market is firm. Inventories remain a concern. Scallops- Market is steady. Inventories remain light with a demand listed as down. Tilapia- Market is steady but firm. Demand is listed as good with replacement costs listed as higher. Dairy Why are dairy prices continuing to rise? Weather issues- Drought in New Zealand has reduced their milk production. Heavy rains in Australia reduced their milk production. Weather issues in South America having impact on Dairy Market. Strong Demand from both Russia and China for dairy products. Low global inventories on dairy products. Higher international cheese prices. Increased global grain prices. Cheese-Market is firm. Pricing continued to climb for both the CME Block and the Barrel markets this week. Both markets are trending well above same time last year and the gap has continued to increase. Reports show that Mozzarella demand has remained strong recently. Butter- Market is firming. Pricing has continued to increase this week as Wednesday saw a sharp increase in market pricing. Pricing remains well above same time last year. Eggs Shell Eggs- Market is soft. Retail demand is listed as poor to fair. Reports show that more advertising is set for next week. Inventories are listed as long. Inventories are up 12% from last week. Egg Products- Market is steady. Beef Market is firm. Live cattle pricing continues to climb. Total beef production for last week was 1.5% lower than previous week. Packers have announced reduced hours for the near future which may lead to even tighter inventories. March is expected to be a tight month on availability. Grilling season is just around the corner and demand should seasonally increase as we get closer to summer. Futures are still showing firmer pricing as the year progresses. Chucks- Market is steady but firm. Rounds- Market is steady but firm. Earlier in the week saw pricing firm across the board while later in the week pricing remained more steady. Loins-Market is steady but firm. As with the rounds pricing advanced earlier this week and held its ground thru the end of the week. Upcoming grilling season is expected to put additional pressure on demand and pricing. Ribs- Market is firming. This market is expected to firm in pricing over the next few weeks. Grinds-Market is softening. Short term pricing has shown signs of weakening. Long term expectations show there could be some strength come back into pricing as we get closer to grilling season. Pork Market is steady. Total pork production was up .9% last week versus the week before and steady with same time last year. Live prices continue to trend higher than same time last year with futures showing pricing higher as we near summer. Exports have eased after the strong demand the past several weeks. Bellies- Market is firm. Report show pricing continuing to remain above last year as we head into the summer months. Hams- Market is steady but firm. Exports have eased but Easter demand is holding pricing in line. Demand is listed as average for this time of the year. Butts- Market has softened. Pricing has softened thru the week. Export demand is down and reports show that pricing could soften over the next few weeks if that demand does not pick back up. Ribs- Market is steady. Loins- Market is firm. Reports show heavy promoting over the next few weeks which should help increase demand. Chicken The markets remain on solid ground. With higher priced proteins, chicken has become an alternative source. High corn prices and transportation costs have also played a part in the market levels we’ve seen this week. WOGs and whole birds are short of full needs, and remain harder to secure. Markets this week have seen daily increases as these items have become tighter. This trend could continue into next week. Whole breast availability is limited and trade at current levels. Boneless and tenders also trade at higher levels as these items are limited in supply. Dark meat trades at steady levels to higher. Leg quarters, legs and thighs are adequate for current needs and are moving at current market levels. Wings are starting to see some interest as market levels dropped the last few weeks. This week though this market has remained steady. Turkey The turkey markets are described as better than seasonal as inquires are better than the norm for the first of March. Overall most items are trading at full market or better. Whole birds have traded at full market or better for end of March into April, but limited or no availability for current ship appears to be available. Fresh and frozen breast meat, thigh meat, drums and wings appear to be the most sought after items on the list. The turkey complex is sitting in a current position that leads most to believe it will remain solid through the spring.
Canned fruits and vegetables As the year progresses things are tightening and beets are an item to watch in canned goods. At this point restrictions have not been placed but movement is being closely monitored and restrictions could come at any time. For canned goods in general fairly well balanced inventories and the coming inflation concerns canners are not offering the kind of deals seen this time last year. Pasta Wheat futures and finished goods demand are the primary drivers of pasta prices. Increases in semolina prices to manufactures are continuing to pressure suppliers to increase prices on finished pasta goods. Frozen Vegetables The talk this week in frozen has been almost in unison across suppliers. Inflation, inflation, inflation. But there is a catch that makes it even worse. For about a year and half pricing for frozen vegetables has been deflated. Suppliers are expecting drastic price increases with the new pack that would bring pricing not just to pre deflation levels but to even higher levels due to increases in nearly all cost inputs. Market Report
Inflation for 2011 Expect 5-7 % inflation over the next 12-18 months for Foodservice as well as Retail. Many global factors driving costs: Weak US Dollar Rising Energy Prices Increased Support for Ethanol – driving corn and feed prices up. High prices offered for Corn , reducing the planting acreage for other products. Strong Global GDP (led by China) Shortfall in World Wheat Production Commodity Speculation Seafood Gulf Shrimp- Market is steady. Inventory on larger sizes remains tight and pricing on the larger sizes is listed as firm. Other sizes are listed as steady but pricing varies from supplier to supplier. Black Tiger Shrimp- Market is steady. White Shrimp- Market is firming. Larger count shrimp are listed as steady. 31-35 and smaller HL/SO are listed as firm with smaller sizes showing additional firming in pricing. Mexican Shrimp- Market is steady. U15 and larger inventories are in tighter supply and pricing is firmer. Warm Water Lobster Tails- Market is steady. North American Lobster Tails- Market is steady to softening. Mid-sized products are listed as weak with pricing varying between suppliers. Small sizes are steady but inventories are tight. Salmon- Market is firming. Inventories are listed as light for the entire category. Demand is reported as good. King Crab- Market is firm. Inventories remain tight and replacement product is listed as very limited. Snow Crab- Market is firm. Inventories remain tight with 5-8’s being reported as being very tight. Alaskan Opilio Crab- Market is firm. Supplies are tight for a good demand. Dungeness Crab- Market is firm. Inventories remain light for an active demand. Pangasius- Market is firming. Reports show that replacement costs continue to rise. Demand is listed as good. Domestic Catfish- Market is firm. Reports show that availability is a concern as demand is outpacing supplies. Tilapia- Market is steady but firm. Scallops- Market is steady but firm. Inventories remain light. Cod- Market is firming. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firmer. Demand is listed as good. Pollock- Market is steady. Whiting- Market is steady. Inventories remain light but are keeping pace with a light demand. Dairy Cheese- Market is firming. The CME markets continued to firm again this week. Pricing is now at its highest point for the year thus far. Demand remains good. Reports show that milk supplies are fairly tight worldwide and are putting additional pressure on the cheese markets. Butter- Market is softening. Butter production is up and is helping to slowly build inventories. Inventories last week increased by another 1.6 million lbs. Total inventories still remain less than half the amount of same time last year(20.4 versus 56.7 million lbs). Eggs Shell Eggs- Market is soft. Total egg inventories increased by another 4% from last week. Retail demand is listed as fair. Foodservice demand is listed as good. Jumbos and Large are listed in good supply. Egg Products- Market is steady. Beef Market is firmer. Live prices pushed higher last week and are now at levels not seen since 2003. Higher grain pricing remains a concern for the protein categories as feed costs are expected to increase. Overall beef production was reported as up just over 2% from previous week. Demand is listed as good. Grinds- Market is steady to softer. Demand remains good and product remains in tight supply. Pricing still remains well above same time last year. Ribs- Market is steady. Loins- Market is steady to firmer. Increased demand is putting additional pressure on the category. Chucks- Market is steady to firmer. Continued increased demand and additional exports continue to put pressure on pricing. Rounds- Market is steady to firmer. Demand is listed as good. Chucks- Market is steady to firmer. Pork Market is firm. Pork production was down last week. Total production was down about 3.3% from previous week. Futures continue to show firm pricing for the category as the year progresses. Bellies- Market is steady but firm. Inventories remain tight with a good demand. Forecasts shows pricing firming over the next few weeks. Reports show that the reason the current market has held steady is that availability is so tight that very little trading is being reported. Hams- Market is firm. Demand is reported as good. Exports continue to be strong and combined with reduced harvests are helping push pricing higher. Loins- Market is firm. Demand is listed as good. Butts- Market is firm. Exports remain very strong. Ribs- Market is steady. Demand is listed as softer. Wheat Wheat futures prices traded lower this week, but basis premium levels are firm to higher, leaving flour prices mostly flat. China’s winter wheat crop received some rain, and their government called supplies adequate; however reliable information about Chinese agricultural production can be difficult to obtain. Forecasts for important wheat growing regions of China and the U.S. are calling for dryer weather through the end of this month. It was thought the U.S. had lost export business to lower-priced competitors, but with the drop in futures prices this trend could be quickly reversed.
Soybean Oil This market has been a rollercoaster this week. Dropping on Thursday after rebounding from losses earlier in the week. The Libyan unrest continues to have an effect on the soybean oil market, as well as, other energy markets. US crude is up more than $4.00 in early trading. Gains in crude oil would normally be supportive for the oilseed markets, but the global political uncertainty taking crude oil higher is also making investors more cautious, causing them to exit some of the riskier agricultural markets. The overall up and down turn of the market this week makes it extremely difficult to book/buy with any certainty. Monitor trends closely and buy to meet immediate needs. Chicken Demand has been mostly basic with the majority of inquires seasonal. In general most inventory levels are in balance with current demand, for the exception of a few items. WOGs and whole birds are one of those items where inventory has become tight, with inquiries holding at market levels. Boneless and tenders are well supported, with tenders trading at full market. Whole breast are steady. Dark meat items such as legs, leg quarters, and thighs are tight with markets levels moving up this week. Wings continue to be weak, with this week’s market reflecting suppliers wanting to clear out some inventory. Turkey Markets are pretty active, more so then what we typically see this time of year. Undertone is strong on most items. Whole birds have seen a slight increase in markets this week as product becomes harder to secure. Raw material demand is active as is both fresh and frozen MST. Wings appear to be trending higher, as tom and hen two joints rate a full steady undertone with supplies less than adequate. Fresh breast meat has been harder to secure with potential of possible market increases. This may also be true for tenders as well. Thigh meat and drums Is limited in current availability.
Dry Beans: The dry market overall continues to see firm pricing. As with other crops, the availability of acreage for planting is affecting dry bean pricing. Pinto and black beans are both expected to continue to firm. Greater than normal export opportunities are present for black beans that are contributing to the price pressure. Imports Limited supply is still the primary concern for imports. Mandarin oranges are especially hard hit as contracts in China are not being fulfilled which puts pressure on products here in the US. with continued demand prices will continue to rise. Frozen Vegetables Weather issues have severely limited the flow of products like okra, broccoli, cauliflower, and asparagus into the US. The availability of acreage for planting of crops in the US is a major concern. Every indication is that with current demand, frozen vegetable pricing will continue to climb. Market Report Produce California Lettuce & Mixed Vegetables Iceberg Lettuce: Growing conditions have improved, however the damage has been done to the iceberg crop, with no rebound in production volume expected through the end of the desert harvest season in late March. Prices will continue at extreme levels and quality will be poor, with heavy damage from epidermal blistering and peeling. Processed Salad: Salad processors are in an extreme deficit supply situation, unable to load trucks in a timely manner, and filling orders only at the 50 percent level. Force Majeure contract price increases continue to escalate. Romaine: The same scenario as exists with iceberg…blistering and peeling, small heads from which many damage leaves have been removed, and the resulting lightweight cartons. Low yields will continue. Prices extreme, quality poor. Romaine Hearts: Epidermal peeling is also an issue, although to a lesser degree compared to commodity romaine. An occasional misshapen head is present in the pack. Quality issues will continue through March. Prices extreme, quality fair. Green Leaf: Freeze damage present, although not to the extent that iceberg and romaine have been affected. Prices high, quality fair. Broccoli (bunched): The market is trending higher as we near the transition period for the harvest moving from the desert northward to Central California…beginning in mid-March. Prices high, quality good. Pin rot and water damage present in broccoli from Central California. Broccoli (crowns): Priced at a substantial premium compared to bunched broccoli. Prices high, quality good. Cauliflower: The market advanced again this week, with production levels down by 10 percent compared to February 2010. Prices high, quality good. Celery: The market firmed this week, with buyers stepping in at lower price levels. Quality is an issue, with blistering and peeling present in desert celery and pith in Oxnard. Prices high, quality fair. Carrots: Large sized carrots (jumbo, table) continue to be in extremely limited supply due to low yields during the harvest transition from the Southern San Joaquin Valley to the Imperial Valley. This shortage includes carrot sticks and carrot chunks (2 inch, 4 inch). No relief is expected until April. Shippers are unable to fill orders in full. Prices extreme, quality good. Artichokes: The cold winter has slowed plant growth; the size profile is heavy to the smaller sizes (36, 48, large loose)…these sizes offer the best value. Most samples are now frost-free. Prices moderate, quality good. Plentiful supplies on all sizes will become available by April. Asparagus: Prices remain high for late season production in Northern Mexico. Quality good. New crop harvesting in Central California has been set back by recent cold, wet growing conditions. Parsley (curly): Adequate availability, prices moderate, quality good. Parsley (Italian): Adequate availability, prices moderate, quality good. Spinach (bunched): Production beginning to recover…prices high, quality good. Kale (green): Good availability. Prices moderate, quality good. Kale (flowering): Steady availability for growers in the desert districts. Cilantro: Increasing supplies. Prices moderate, quality good. Green Onions: The market is gradually easing with improved weather conditions in Mexico, however planted acreage is below average. A meaningful increase in production is not expected until late March. Prices high, quality good. Leeks: Availability is adequate, prices high, quality good. Green Cabbage: Tight availability, prices high, quality good. Red Cabbage: Adequate availability, prices moderate, quality good. Bok Choy: Adequate supplies, prices high. Napa: Light supplies, prices high. Snow peas: Good availability…prices moderate, quality good. Garlic: Tight supplies, high prices…Reduced imports and poor quality from China. No relief until late summer. Spring Mix: Spring mix availability is gradually improving…growers have been able to re-introduce various red components into the mix. Prices high, quality good. Spinach (baby): Better availability, however occasional allocation still in effect, depending on the shipper. Arugula: Increasing production, adequate availability. Mache: Unavailable…quality poor. Berries Strawberries: Tight availability in the West…the harvest in Central Mexico is winding down and Oxnard continues with modest production volume. Prices high, quality fair. Plentiful availability for late season production in Florida. Raspberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blackberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blueberries: Late season harvest volume in Chile is decreasing…finishing by mid-April. New crop blueberries in Georgia and Florida will begin at that time. Still moderate supplies coming from Mexico. Prices high, quality good. California-Arizona Citrus Navel Oranges: Continued plentiful availability for California Navel oranges…no effects from cold weather or rain thus far. Prices low, quality excellent. Lemons: We are near the end of the season for desert lemons…the primary shipping district is now the San Joaquin Valley, with storage crop inventories for Ventura County growers being replenished for the summer shipping season. Good availability on all sizes, with best values being offered on the large sizes (75, 95, 115). Prices moderate, quality excellent. Limes (Persian): The market for large sizes is slowly easing, with much better availability and favorable prices for the small sizes (230, 250). Growers harvesting limes as early as possible in the growth cycle to take full advantage of current high market. Harvest area transition in Mexico to occur in late March. Prices high-to-extreme, quality good. Grapefruit: Good availability on Desert Rio Red variety in California & Arizona and Texas Rio Star in Texas. Prices low-to-moderate, quality excellent. Cara Cara Oranges: Now in peak season production. Moro Oranges: Production winding down…size profile heavy to 113’s & smaller. Mandarins: Good availability for medium and large sizes (24’s-36’s). Pummelos: Nearing the end of the season…best value on smaller sizes (14-18). Prices moderate, quality good. Minneola Tangelos: Season finished for desert growers…now shipping from Central & Southern California. Prices moderate, quality good. Pineapple: Production is beginning to increase in Costa Rica, Guatemala, Honduras and Panama…good availability is in the forecast for Easter. Mexican pineapples are also available. Melons Cantaloupes: Steady availability, market firm…prices high, quality excellent. Honeydews: Tight availability from Central America…Mexican harvesting getting underway…not enough volume to influence the market. Prices high, quality excellent. Watermelons: Increasing production from growers in the Guadalajara region in Southern Mexico. Prices moderate, quality excellent…both seedless and seeded varieties. Washington Apples and Pears Red Delicious: Good demand; market well supported by exports. Yields very good considering difficult growing conditions during spring and summer 2010. Markets are firm most sizes, expected to remain steady going into spring. Golden Delicious: Good availability, prices moderate. Bosc Pears: Good availability, prices moderate-to-high. D’Anjou Pears: Good availability, prices moderate-to-high. Bartlett Pears: New crop from Chile now available, prices moderate-to-high. Grapes & Soft Fruit Red Seedless Grapes: Supplies will be tight through late March with the transition from Flame seedless variety to Crimson. Prices moderate, quality good. Green Seedless Grapes: Availability increasing for Thompson seedless. Prices moderate, quality good. Kiwi (California): The first shipment of Chilean kiwi is now on the water, arriving in late March. California kiwi will continue to be available in the interim…transition will be smooth. Prices moderate, quality good. Avocados Hass: Calavo reports that the Mexican harvest is 2/3 complete, and the remaining 1/3 must last through July. The California Hass crop is 50 percent smaller compared to 2010. Chilean season is finished. The market continues to push higher on all sizes, with the greatest increases on the 48’s. Prices extreme, quality good. Eastern & Western Vegetables Green Bell Peppers: Limited availability and extreme prices on jumbo and extra large. Best availability on choice grade. Quality fair. Red Bell Peppers: Demand increasing, market firm. Prices moderate, quality good. Cucumbers: Tight supplies, production in Mexico winding down for the remainder of March. Prices high, quality fair. Green Beans: Good availability from growers in Florida and Central America. Prices moderate. Tight availability in Nogales. Prices extreme, quality poor. Eggplant: unavailable in Nogales and Florida. Product availability returning in April. Squash: Zucchini: Tight availability in Florida and Nogales. Prices extreme. Quality fair. Yellow: Plentiful supplies in Florida, adequate in Nogales. Florida: prices low, quality good. Nogales: prices high, quality fair. Tomatoes Round: The effects are now being manifested from the freeze that occurred in Mexico during early February…acreage has been lost and production is on the decline…causing upward pressure in the market. Storage inventories are depleted…the upward price trend will continue. Prices high, quality fair. Roma: Same as round tomatoes. Cherry: Same as round tomatoes. Grape: Same as round tomatoes. Potatoes (Idaho) Russets: Availability has tightened considerably for the US #2 Idaho Russets, with a sharp advance in the market this week. Prices are also on the rise for carton packed, small sized potatoes (80, 90, 100). We can expect to see continued subtle to sharp advances in prices on a weekly basis going forward. Prices high, quality good. Onions (Northwest) Yellow: Onions are in oversupply…Mexican growers in full production, supplying the southwestern and southeastern U.S. Packers of storage crop onions in the Northwest will continue to ship through the month of April. Prices low, quality good. Red: Red onions are in oversupply. Quality good, market low. White: Same as yellow onions. Soybean Futures The soybean complex has traded all over this week. The futures price started higher in response to ideas that U.S. soybeans out of the Pacific Northwest are once again competitive with Brazilian origin for the next few weeks. Surging soybean oil also helps as the idea of manufacturing bio-diesel will become profitable due to surging gasoline prices. The complex sold off sharply in response to the break in corn but managed to recover most of those losses by day's end with the exception of soybean meal. Basis levels for soybeans are mostly steady with the Gulf appearing a bit easier. March beans gain on the spread due to the lack of deliveries against the March contract. Forward spreads within the old crop do little, maybe a bit easier. Spreads within new crop firmed a bit, in part to the effort of new crop beans trying to secure acres for the upcoming season. If the acres are not contracted, beans within the U.S. will continue to tighten making the recent tight years pale in comparison. The technical look for soybeans and soybean meal is a bit bothersome. Soybeans and soybean meal match last Friday's highs and fail to follow through. The price action is suggesting an interim double top of the up flagging efforts from last week's lows. Business is expected to fade in the coming weeks/months as the South American new crop comes on line. This holds true for the soybean oil market as well. Soybean Oil The continued unrest will force drastic market swings such as we have seen in the last two weeks. Export sales continue to be noticeably higher which also contributes to the strong market. Outside markets continue to drive the upward trend seen in the soybean oil market. Look for this market to remain strong with occasional, short lived, small drops. Discuss forward strategy with your oil partner. Mideast/North African Tension, Energies Continued civil unrest in Libya and growing concern over oil supply disruptions sent energies higher. Libyan sources contend that oil production and shipments are down 50%, but industry sources suggest that production is down far more. It is thought that the ships that have been loaded in the last several days have been loaded with inventory accumulated prior to the civil unrest and that new oil is not being received from the oil fields. The Department of Energy released its weekly numbers on Wednesday. Crude Oil supplies were down 400,000 barrels for the week, up 4.7 million from a year ago. Total gasoline stocks dropped by 3.6 million barrels, up 2.8 million barrels from a year ago. Gasoline and oil stocks have been increasing mostly every week and gasoline prices at the pump are still going higher. We continue to believe that energy prices will continue to remain strong and find support on dips as long as civil unrest remains in the Middle East and North Africa. This unrest will have a direct affect on commodities traded daily. As long as this country is in disarray, expect commodities to remain strong.
Seafood News from the Gulf- The area of Federal Waters closed to fishing in the Gulf remains unchanged since February 1st. The current area closed to fishing remains at 1041 square miles. Gulf Shrimp- Market is steady to firm. Black Tiger Shrimp- Market is mixed. Several sizes are listed as firming with the exception of 16-20 and 21-25 Headless Shell On as these are listed as weaker. Inventories are listed as tighter while demand remains good. White Shrimp- Market is firming. 31-35 and smaller are listed as firming because of tighter inventories. Larger sizes are listed as steady. Salmon- Market is steady to firm. Replacement costs are noted as higher. King Crab- Market is firm. Snow Crab- Market is steady but firm. Inventories remain very light with a good demand. Warm Water Lobster Tails- Market is steady. Demand is listed as low. American Lobster Tails- Market is steady. Smaller sizes are reported to have limited supplies. Cod- Market is firm. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firming. Demand is listed as good. Pollock- Market is steady. Inventories are reported as good for a light to moderate demand. Whiting- Market is steady. Even though supplies are reported as very light, demand remains low and are keeping inventories in pace with demand. Domestic Catfish- Market is firm. Inventories remain a concern. Scallops- Market is steady. Inventories remain light with a demand listed as down. Tilapia- Market is steady but firm. Demand is listed as good with replacement costs listed as higher. Dairy Why are dairy prices continuing to rise? Weather issues- Drought in New Zealand has reduced their milk production. Heavy rains in Australia reduced their milk production. Weather issues in South America having impact on Dairy Market. Strong Demand from both Russia and China for dairy products. Low global inventories on dairy products. Higher international cheese prices. Increased global grain prices. Cheese-Market is firm. Pricing continued to climb for both the CME Block and the Barrel markets this week. Both markets are trending well above same time last year and the gap has continued to increase. Reports show that Mozzarella demand has remained strong recently. Butter- Market is firming. Pricing has continued to increase this week as Wednesday saw a sharp increase in market pricing. Pricing remains well above same time last year. Eggs Shell Eggs- Market is soft. Retail demand is listed as poor to fair. Reports show that more advertising is set for next week. Inventories are listed as long. Inventories are up 12% from last week. Egg Products- Market is steady. Beef Market is firm. Live cattle pricing continues to climb. Total beef production for last week was 1.5% lower than previous week. Packers have announced reduced hours for the near future which may lead to even tighter inventories. March is expected to be a tight month on availability. Grilling season is just around the corner and demand should seasonally increase as we get closer to summer. Futures are still showing firmer pricing as the year progresses. Chucks- Market is steady but firm. Rounds- Market is steady but firm. Earlier in the week saw pricing firm across the board while later in the week pricing remained more steady. Loins-Market is steady but firm. As with the rounds pricing advanced earlier this week and held its ground thru the end of the week. Upcoming grilling season is expected to put additional pressure on demand and pricing. Ribs- Market is firming. This market is expected to firm in pricing over the next few weeks. Grinds-Market is softening. Short term pricing has shown signs of weakening. Long term expectations show there could be some strength come back into pricing as we get closer to grilling season. Pork Market is steady. Total pork production was up .9% last week versus the week before and steady with same time last year. Live prices continue to trend higher than same time last year with futures showing pricing higher as we near summer. Exports have eased after the strong demand the past several weeks. Bellies- Market is firm. Report show pricing continuing to remain above last year as we head into the summer months. Hams- Market is steady but firm. Exports have eased but Easter demand is holding pricing in line. Demand is listed as average for this time of the year. Butts- Market has softened. Pricing has softened thru the week. Export demand is down and reports show that pricing could soften over the next few weeks if that demand does not pick back up. Ribs- Market is steady. Loins- Market is firm. Reports show heavy promoting over the next few weeks which should help increase demand. Chicken The markets remain on solid ground. With higher priced proteins, chicken has become an alternative source. High corn prices and transportation costs have also played a part in the market levels we’ve seen this week. WOGs and whole birds are short of full needs, and remain harder to secure. Markets this week have seen daily increases as these items have become tighter. This trend could continue into next week. Whole breast availability is limited and trade at current levels. Boneless and tenders also trade at higher levels as these items are limited in supply. Dark meat trades at steady levels to higher. Leg quarters, legs and thighs are adequate for current needs and are moving at current market levels. Wings are starting to see some interest as market levels dropped the last few weeks. This week though this market has remained steady. Turkey The turkey markets are described as better than seasonal as inquires are better than the norm for the first of March. Overall most items are trading at full market or better. Whole birds have traded at full market or better for end of March into April, but limited or no availability for current ship appears to be available. Fresh and frozen breast meat, thigh meat, drums and wings appear to be the most sought after items on the list. The turkey complex is sitting in a current position that leads most to believe it will remain solid through the spring.
Canned fruits and vegetables As the year progresses things are tightening and beets are an item to watch in canned goods. At this point restrictions have not been placed but movement is being closely monitored and restrictions could come at any time. For canned goods in general fairly well balanced inventories and the coming inflation concerns canners are not offering the kind of deals seen this time last year. Pasta Wheat futures and finished goods demand are the primary drivers of pasta prices. Increases in semolina prices to manufactures are continuing to pressure suppliers to increase prices on finished pasta goods. Frozen Vegetables The talk this week in frozen has been almost in unison across suppliers. Inflation, inflation, inflation. But there is a catch that makes it even worse. For about a year and half pricing for frozen vegetables has been deflated. Suppliers are expecting drastic price increases with the new pack that would bring pricing not just to pre deflation levels but to even higher levels due to increases in nearly all cost inputs. Market Report
Inflation for 2011 Expect 5-7 % inflation over the next 12-18 months for Foodservice as well as Retail. Many global factors driving costs: Weak US Dollar Rising Energy Prices Increased Support for Ethanol – driving corn and feed prices up. High prices offered for Corn , reducing the planting acreage for other products. Strong Global GDP (led by China) Shortfall in World Wheat Production Commodity Speculation Seafood Gulf Shrimp- Market is steady. Inventory on larger sizes remains tight and pricing on the larger sizes is listed as firm. Other sizes are listed as steady but pricing varies from supplier to supplier. Black Tiger Shrimp- Market is steady. White Shrimp- Market is firming. Larger count shrimp are listed as steady. 31-35 and smaller HL/SO are listed as firm with smaller sizes showing additional firming in pricing. Mexican Shrimp- Market is steady. U15 and larger inventories are in tighter supply and pricing is firmer. Warm Water Lobster Tails- Market is steady. North American Lobster Tails- Market is steady to softening. Mid-sized products are listed as weak with pricing varying between suppliers. Small sizes are steady but inventories are tight. Salmon- Market is firming. Inventories are listed as light for the entire category. Demand is reported as good. King Crab- Market is firm. Inventories remain tight and replacement product is listed as very limited. Snow Crab- Market is firm. Inventories remain tight with 5-8’s being reported as being very tight. Alaskan Opilio Crab- Market is firm. Supplies are tight for a good demand. Dungeness Crab- Market is firm. Inventories remain light for an active demand. Pangasius- Market is firming. Reports show that replacement costs continue to rise. Demand is listed as good. Domestic Catfish- Market is firm. Reports show that availability is a concern as demand is outpacing supplies. Tilapia- Market is steady but firm. Scallops- Market is steady but firm. Inventories remain light. Cod- Market is firming. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firmer. Demand is listed as good. Pollock- Market is steady. Whiting- Market is steady. Inventories remain light but are keeping pace with a light demand. Dairy Cheese- Market is firming. The CME markets continued to firm again this week. Pricing is now at its highest point for the year thus far. Demand remains good. Reports show that milk supplies are fairly tight worldwide and are putting additional pressure on the cheese markets. Butter- Market is softening. Butter production is up and is helping to slowly build inventories. Inventories last week increased by another 1.6 million lbs. Total inventories still remain less than half the amount of same time last year(20.4 versus 56.7 million lbs). Eggs Shell Eggs- Market is soft. Total egg inventories increased by another 4% from last week. Retail demand is listed as fair. Foodservice demand is listed as good. Jumbos and Large are listed in good supply. Egg Products- Market is steady. Beef Market is firmer. Live prices pushed higher last week and are now at levels not seen since 2003. Higher grain pricing remains a concern for the protein categories as feed costs are expected to increase. Overall beef production was reported as up just over 2% from previous week. Demand is listed as good. Grinds- Market is steady to softer. Demand remains good and product remains in tight supply. Pricing still remains well above same time last year. Ribs- Market is steady. Loins- Market is steady to firmer. Increased demand is putting additional pressure on the category. Chucks- Market is steady to firmer. Continued increased demand and additional exports continue to put pressure on pricing. Rounds- Market is steady to firmer. Demand is listed as good. Chucks- Market is steady to firmer. Pork Market is firm. Pork production was down last week. Total production was down about 3.3% from previous week. Futures continue to show firm pricing for the category as the year progresses. Bellies- Market is steady but firm. Inventories remain tight with a good demand. Forecasts shows pricing firming over the next few weeks. Reports show that the reason the current market has held steady is that availability is so tight that very little trading is being reported. Hams- Market is firm. Demand is reported as good. Exports continue to be strong and combined with reduced harvests are helping push pricing higher. Loins- Market is firm. Demand is listed as good. Butts- Market is firm. Exports remain very strong. Ribs- Market is steady. Demand is listed as softer. Wheat Wheat futures prices traded lower this week, but basis premium levels are firm to higher, leaving flour prices mostly flat. China’s winter wheat crop received some rain, and their government called supplies adequate; however reliable information about Chinese agricultural production can be difficult to obtain. Forecasts for important wheat growing regions of China and the U.S. are calling for dryer weather through the end of this month. It was thought the U.S. had lost export business to lower-priced competitors, but with the drop in futures prices this trend could be quickly reversed.
Soybean Oil This market has been a rollercoaster this week. Dropping on Thursday after rebounding from losses earlier in the week. The Libyan unrest continues to have an effect on the soybean oil market, as well as, other energy markets. US crude is up more than $4.00 in early trading. Gains in crude oil would normally be supportive for the oilseed markets, but the global political uncertainty taking crude oil higher is also making investors more cautious, causing them to exit some of the riskier agricultural markets. The overall up and down turn of the market this week makes it extremely difficult to book/buy with any certainty. Monitor trends closely and buy to meet immediate needs. Chicken Demand has been mostly basic with the majority of inquires seasonal. In general most inventory levels are in balance with current demand, for the exception of a few items. WOGs and whole birds are one of those items where inventory has become tight, with inquiries holding at market levels. Boneless and tenders are well supported, with tenders trading at full market. Whole breast are steady. Dark meat items such as legs, leg quarters, and thighs are tight with markets levels moving up this week. Wings continue to be weak, with this week’s market reflecting suppliers wanting to clear out some inventory. Turkey Markets are pretty active, more so then what we typically see this time of year. Undertone is strong on most items. Whole birds have seen a slight increase in markets this week as product becomes harder to secure. Raw material demand is active as is both fresh and frozen MST. Wings appear to be trending higher, as tom and hen two joints rate a full steady undertone with supplies less than adequate. Fresh breast meat has been harder to secure with potential of possible market increases. This may also be true for tenders as well. Thigh meat and drums Is limited in current availability.
Dry Beans: The dry market overall continues to see firm pricing. As with other crops, the availability of acreage for planting is affecting dry bean pricing. Pinto and black beans are both expected to continue to firm. Greater than normal export opportunities are present for black beans that are contributing to the price pressure. Imports Limited supply is still the primary concern for imports. Mandarin oranges are especially hard hit as contracts in China are not being fulfilled which puts pressure on products here in the US. with continued demand prices will continue to rise. Frozen Vegetables Weather issues have severely limited the flow of products like okra, broccoli, cauliflower, and asparagus into the US. The availability of acreage for planting of crops in the US is a major concern. Every indication is that with current demand, frozen vegetable pricing will continue to climb. Market Report Produce California Lettuce & Mixed Vegetables Iceberg Lettuce: Growing conditions have improved, however the damage has been done to the iceberg crop, with no rebound in production volume expected through the end of the desert harvest season in late March. Prices will continue at extreme levels and quality will be poor, with heavy damage from epidermal blistering and peeling. Processed Salad: Salad processors are in an extreme deficit supply situation, unable to load trucks in a timely manner, and filling orders only at the 50 percent level. Force Majeure contract price increases continue to escalate. Romaine: The same scenario as exists with iceberg…blistering and peeling, small heads from which many damage leaves have been removed, and the resulting lightweight cartons. Low yields will continue. Prices extreme, quality poor. Romaine Hearts: Epidermal peeling is also an issue, although to a lesser degree compared to commodity romaine. An occasional misshapen head is present in the pack. Quality issues will continue through March. Prices extreme, quality fair. Green Leaf: Freeze damage present, although not to the extent that iceberg and romaine have been affected. Prices high, quality fair. Broccoli (bunched): The market is trending higher as we near the transition period for the harvest moving from the desert northward to Central California…beginning in mid-March. Prices high, quality good. Pin rot and water damage present in broccoli from Central California. Broccoli (crowns): Priced at a substantial premium compared to bunched broccoli. Prices high, quality good. Cauliflower: The market advanced again this week, with production levels down by 10 percent compared to February 2010. Prices high, quality good. Celery: The market firmed this week, with buyers stepping in at lower price levels. Quality is an issue, with blistering and peeling present in desert celery and pith in Oxnard. Prices high, quality fair. Carrots: Large sized carrots (jumbo, table) continue to be in extremely limited supply due to low yields during the harvest transition from the Southern San Joaquin Valley to the Imperial Valley. This shortage includes carrot sticks and carrot chunks (2 inch, 4 inch). No relief is expected until April. Shippers are unable to fill orders in full. Prices extreme, quality good. Artichokes: The cold winter has slowed plant growth; the size profile is heavy to the smaller sizes (36, 48, large loose)…these sizes offer the best value. Most samples are now frost-free. Prices moderate, quality good. Plentiful supplies on all sizes will become available by April. Asparagus: Prices remain high for late season production in Northern Mexico. Quality good. New crop harvesting in Central California has been set back by recent cold, wet growing conditions. Parsley (curly): Adequate availability, prices moderate, quality good. Parsley (Italian): Adequate availability, prices moderate, quality good. Spinach (bunched): Production beginning to recover…prices high, quality good. Kale (green): Good availability. Prices moderate, quality good. Kale (flowering): Steady availability for growers in the desert districts. Cilantro: Increasing supplies. Prices moderate, quality good. Green Onions: The market is gradually easing with improved weather conditions in Mexico, however planted acreage is below average. A meaningful increase in production is not expected until late March. Prices high, quality good. Leeks: Availability is adequate, prices high, quality good. Green Cabbage: Tight availability, prices high, quality good. Red Cabbage: Adequate availability, prices moderate, quality good. Bok Choy: Adequate supplies, prices high. Napa: Light supplies, prices high. Snow peas: Good availability…prices moderate, quality good. Garlic: Tight supplies, high prices…Reduced imports and poor quality from China. No relief until late summer. Spring Mix: Spring mix availability is gradually improving…growers have been able to re-introduce various red components into the mix. Prices high, quality good. Spinach (baby): Better availability, however occasional allocation still in effect, depending on the shipper. Arugula: Increasing production, adequate availability. Mache: Unavailable…quality poor. Berries Strawberries: Tight availability in the West…the harvest in Central Mexico is winding down and Oxnard continues with modest production volume. Prices high, quality fair. Plentiful availability for late season production in Florida. Raspberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blackberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blueberries: Late season harvest volume in Chile is decreasing…finishing by mid-April. New crop blueberries in Georgia and Florida will begin at that time. Still moderate supplies coming from Mexico. Prices high, quality good. California-Arizona Citrus Navel Oranges: Continued plentiful availability for California Navel oranges…no effects from cold weather or rain thus far. Prices low, quality excellent. Lemons: We are near the end of the season for desert lemons…the primary shipping district is now the San Joaquin Valley, with storage crop inventories for Ventura County growers being replenished for the summer shipping season. Good availability on all sizes, with best values being offered on the large sizes (75, 95, 115). Prices moderate, quality excellent. Limes (Persian): The market for large sizes is slowly easing, with much better availability and favorable prices for the small sizes (230, 250). Growers harvesting limes as early as possible in the growth cycle to take full advantage of current high market. Harvest area transition in Mexico to occur in late March. Prices high-to-extreme, quality good. Grapefruit: Good availability on Desert Rio Red variety in California & Arizona and Texas Rio Star in Texas. Prices low-to-moderate, quality excellent. Cara Cara Oranges: Now in peak season production. Moro Oranges: Production winding down…size profile heavy to 113’s & smaller. Mandarins: Good availability for medium and large sizes (24’s-36’s). Pummelos: Nearing the end of the season…best value on smaller sizes (14-18). Prices moderate, quality good. Minneola Tangelos: Season finished for desert growers…now shipping from Central & Southern California. Prices moderate, quality good. Pineapple: Production is beginning to increase in Costa Rica, Guatemala, Honduras and Panama…good availability is in the forecast for Easter. Mexican pineapples are also available. Melons Cantaloupes: Steady availability, market firm…prices high, quality excellent. Honeydews: Tight availability from Central America…Mexican harvesting getting underway…not enough volume to influence the market. Prices high, quality excellent. Watermelons: Increasing production from growers in the Guadalajara region in Southern Mexico. Prices moderate, quality excellent…both seedless and seeded varieties. Washington Apples and Pears Red Delicious: Good demand; market well supported by exports. Yields very good considering difficult growing conditions during spring and summer 2010. Markets are firm most sizes, expected to remain steady going into spring. Golden Delicious: Good availability, prices moderate. Bosc Pears: Good availability, prices moderate-to-high. D’Anjou Pears: Good availability, prices moderate-to-high. Bartlett Pears: New crop from Chile now available, prices moderate-to-high. Grapes & Soft Fruit Red Seedless Grapes: Supplies will be tight through late March with the transition from Flame seedless variety to Crimson. Prices moderate, quality good. Green Seedless Grapes: Availability increasing for Thompson seedless. Prices moderate, quality good. Kiwi (California): The first shipment of Chilean kiwi is now on the water, arriving in late March. California kiwi will continue to be available in the interim…transition will be smooth. Prices moderate, quality good. Avocados Hass: Calavo reports that the Mexican harvest is 2/3 complete, and the remaining 1/3 must last through July. The California Hass crop is 50 percent smaller compared to 2010. Chilean season is finished. The market continues to push higher on all sizes, with the greatest increases on the 48’s. Prices extreme, quality good. Eastern & Western Vegetables Green Bell Peppers: Limited availability and extreme prices on jumbo and extra large. Best availability on choice grade. Quality fair. Red Bell Peppers: Demand increasing, market firm. Prices moderate, quality good. Cucumbers: Tight supplies, production in Mexico winding down for the remainder of March. Prices high, quality fair. Green Beans: Good availability from growers in Florida and Central America. Prices moderate. Tight availability in Nogales. Prices extreme, quality poor. Eggplant: unavailable in Nogales and Florida. Product availability returning in April. Squash: Zucchini: Tight availability in Florida and Nogales. Prices extreme. Quality fair. Yellow: Plentiful supplies in Florida, adequate in Nogales. Florida: prices low, quality good. Nogales: prices high, quality fair. Tomatoes Round: The effects are now being manifested from the freeze that occurred in Mexico during early February…acreage has been lost and production is on the decline…causing upward pressure in the market. Storage inventories are depleted…the upward price trend will continue. Prices high, quality fair. Roma: Same as round tomatoes. Cherry: Same as round tomatoes. Grape: Same as round tomatoes. Potatoes (Idaho) Russets: Availability has tightened considerably for the US #2 Idaho Russets, with a sharp advance in the market this week. Prices are also on the rise for carton packed, small sized potatoes (80, 90, 100). We can expect to see continued subtle to sharp advances in prices on a weekly basis going forward. Prices high, quality good. Onions (Northwest) Yellow: Onions are in oversupply…Mexican growers in full production, supplying the southwestern and southeastern U.S. Packers of storage crop onions in the Northwest will continue to ship through the month of April. Prices low, quality good. Red: Red onions are in oversupply. Quality good, market low. White: Same as yellow onions. Soybean Futures The soybean complex has traded all over this week. The futures price started higher in response to ideas that U.S. soybeans out of the Pacific Northwest are once again competitive with Brazilian origin for the next few weeks. Surging soybean oil also helps as the idea of manufacturing bio-diesel will become profitable due to surging gasoline prices. The complex sold off sharply in response to the break in corn but managed to recover most of those losses by day's end with the exception of soybean meal. Basis levels for soybeans are mostly steady with the Gulf appearing a bit easier. March beans gain on the spread due to the lack of deliveries against the March contract. Forward spreads within the old crop do little, maybe a bit easier. Spreads within new crop firmed a bit, in part to the effort of new crop beans trying to secure acres for the upcoming season. If the acres are not contracted, beans within the U.S. will continue to tighten making the recent tight years pale in comparison. The technical look for soybeans and soybean meal is a bit bothersome. Soybeans and soybean meal match last Friday's highs and fail to follow through. The price action is suggesting an interim double top of the up flagging efforts from last week's lows. Business is expected to fade in the coming weeks/months as the South American new crop comes on line. This holds true for the soybean oil market as well. Soybean Oil The continued unrest will force drastic market swings such as we have seen in the last two weeks. Export sales continue to be noticeably higher which also contributes to the strong market. Outside markets continue to drive the upward trend seen in the soybean oil market. Look for this market to remain strong with occasional, short lived, small drops. Discuss forward strategy with your oil partner. Mideast/North African Tension, Energies Continued civil unrest in Libya and growing concern over oil supply disruptions sent energies higher. Libyan sources contend that oil production and shipments are down 50%, but industry sources suggest that production is down far more. It is thought that the ships that have been loaded in the last several days have been loaded with inventory accumulated prior to the civil unrest and that new oil is not being received from the oil fields. The Department of Energy released its weekly numbers on Wednesday. Crude Oil supplies were down 400,000 barrels for the week, up 4.7 million from a year ago. Total gasoline stocks dropped by 3.6 million barrels, up 2.8 million barrels from a year ago. Gasoline and oil stocks have been increasing mostly every week and gasoline prices at the pump are still going higher. We continue to believe that energy prices will continue to remain strong and find support on dips as long as civil unrest remains in the Middle East and North Africa. This unrest will have a direct affect on commodities traded daily. As long as this country is in disarray, expect commodities to remain strong.
Seafood News from the Gulf- The area of Federal Waters closed to fishing in the Gulf remains unchanged since February 1st. The current area closed to fishing remains at 1041 square miles. Gulf Shrimp- Market is steady to firm. Black Tiger Shrimp- Market is mixed. Several sizes are listed as firming with the exception of 16-20 and 21-25 Headless Shell On as these are listed as weaker. Inventories are listed as tighter while demand remains good. White Shrimp- Market is firming. 31-35 and smaller are listed as firming because of tighter inventories. Larger sizes are listed as steady. Salmon- Market is steady to firm. Replacement costs are noted as higher. King Crab- Market is firm. Snow Crab- Market is steady but firm. Inventories remain very light with a good demand. Warm Water Lobster Tails- Market is steady. Demand is listed as low. American Lobster Tails- Market is steady. Smaller sizes are reported to have limited supplies. Cod- Market is firm. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firming. Demand is listed as good. Pollock- Market is steady. Inventories are reported as good for a light to moderate demand. Whiting- Market is steady. Even though supplies are reported as very light, demand remains low and are keeping inventories in pace with demand. Domestic Catfish- Market is firm. Inventories remain a concern. Scallops- Market is steady. Inventories remain light with a demand listed as down. Tilapia- Market is steady but firm. Demand is listed as good with replacement costs listed as higher. Dairy Why are dairy prices continuing to rise? Weather issues- Drought in New Zealand has reduced their milk production. Heavy rains in Australia reduced their milk production. Weather issues in South America having impact on Dairy Market. Strong Demand from both Russia and China for dairy products. Low global inventories on dairy products. Higher international cheese prices. Increased global grain prices. Cheese-Market is firm. Pricing continued to climb for both the CME Block and the Barrel markets this week. Both markets are trending well above same time last year and the gap has continued to increase. Reports show that Mozzarella demand has remained strong recently. Butter- Market is firming. Pricing has continued to increase this week as Wednesday saw a sharp increase in market pricing. Pricing remains well above same time last year. Eggs Shell Eggs- Market is soft. Retail demand is listed as poor to fair. Reports show that more advertising is set for next week. Inventories are listed as long. Inventories are up 12% from last week. Egg Products- Market is steady. Beef Market is firm. Live cattle pricing continues to climb. Total beef production for last week was 1.5% lower than previous week. Packers have announced reduced hours for the near future which may lead to even tighter inventories. March is expected to be a tight month on availability. Grilling season is just around the corner and demand should seasonally increase as we get closer to summer. Futures are still showing firmer pricing as the year progresses. Chucks- Market is steady but firm. Rounds- Market is steady but firm. Earlier in the week saw pricing firm across the board while later in the week pricing remained more steady. Loins-Market is steady but firm. As with the rounds pricing advanced earlier this week and held its ground thru the end of the week. Upcoming grilling season is expected to put additional pressure on demand and pricing. Ribs- Market is firming. This market is expected to firm in pricing over the next few weeks. Grinds-Market is softening. Short term pricing has shown signs of weakening. Long term expectations show there could be some strength come back into pricing as we get closer to grilling season. Pork Market is steady. Total pork production was up .9% last week versus the week before and steady with same time last year. Live prices continue to trend higher than same time last year with futures showing pricing higher as we near summer. Exports have eased after the strong demand the past several weeks. Bellies- Market is firm. Report show pricing continuing to remain above last year as we head into the summer months. Hams- Market is steady but firm. Exports have eased but Easter demand is holding pricing in line. Demand is listed as average for this time of the year. Butts- Market has softened. Pricing has softened thru the week. Export demand is down and reports show that pricing could soften over the next few weeks if that demand does not pick back up. Ribs- Market is steady. Loins- Market is firm. Reports show heavy promoting over the next few weeks which should help increase demand. Chicken The markets remain on solid ground. With higher priced proteins, chicken has become an alternative source. High corn prices and transportation costs have also played a part in the market levels we’ve seen this week. WOGs and whole birds are short of full needs, and remain harder to secure. Markets this week have seen daily increases as these items have become tighter. This trend could continue into next week. Whole breast availability is limited and trade at current levels. Boneless and tenders also trade at higher levels as these items are limited in supply. Dark meat trades at steady levels to higher. Leg quarters, legs and thighs are adequate for current needs and are moving at current market levels. Wings are starting to see some interest as market levels dropped the last few weeks. This week though this market has remained steady. Turkey The turkey markets are described as better than seasonal as inquires are better than the norm for the first of March. Overall most items are trading at full market or better. Whole birds have traded at full market or better for end of March into April, but limited or no availability for current ship appears to be available. Fresh and frozen breast meat, thigh meat, drums and wings appear to be the most sought after items on the list. The turkey complex is sitting in a current position that leads most to believe it will remain solid through the spring.
Canned fruits and vegetables As the year progresses things are tightening and beets are an item to watch in canned goods. At this point restrictions have not been placed but movement is being closely monitored and restrictions could come at any time. For canned goods in general fairly well balanced inventories and the coming inflation concerns canners are not offering the kind of deals seen this time last year. Pasta Wheat futures and finished goods demand are the primary drivers of pasta prices. Increases in semolina prices to manufactures are continuing to pressure suppliers to increase prices on finished pasta goods. Frozen Vegetables The talk this week in frozen has been almost in unison across suppliers. Inflation, inflation, inflation. But there is a catch that makes it even worse. For about a year and half pricing for frozen vegetables has been deflated. Suppliers are expecting drastic price increases with the new pack that would bring pricing not just to pre deflation levels but to even higher levels due to increases in nearly all cost inputs. Market Report
Inflation for 2011 Expect 5-7 % inflation over the next 12-18 months for Foodservice as well as Retail. Many global factors driving costs: Weak US Dollar Rising Energy Prices Increased Support for Ethanol – driving corn and feed prices up. High prices offered for Corn , reducing the planting acreage for other products. Strong Global GDP (led by China) Shortfall in World Wheat Production Commodity Speculation Seafood Gulf Shrimp- Market is steady. Inventory on larger sizes remains tight and pricing on the larger sizes is listed as firm. Other sizes are listed as steady but pricing varies from supplier to supplier. Black Tiger Shrimp- Market is steady. White Shrimp- Market is firming. Larger count shrimp are listed as steady. 31-35 and smaller HL/SO are listed as firm with smaller sizes showing additional firming in pricing. Mexican Shrimp- Market is steady. U15 and larger inventories are in tighter supply and pricing is firmer. Warm Water Lobster Tails- Market is steady. North American Lobster Tails- Market is steady to softening. Mid-sized products are listed as weak with pricing varying between suppliers. Small sizes are steady but inventories are tight. Salmon- Market is firming. Inventories are listed as light for the entire category. Demand is reported as good. King Crab- Market is firm. Inventories remain tight and replacement product is listed as very limited. Snow Crab- Market is firm. Inventories remain tight with 5-8’s being reported as being very tight. Alaskan Opilio Crab- Market is firm. Supplies are tight for a good demand. Dungeness Crab- Market is firm. Inventories remain light for an active demand. Pangasius- Market is firming. Reports show that replacement costs continue to rise. Demand is listed as good. Domestic Catfish- Market is firm. Reports show that availability is a concern as demand is outpacing supplies. Tilapia- Market is steady but firm. Scallops- Market is steady but firm. Inventories remain light. Cod- Market is firming. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firmer. Demand is listed as good. Pollock- Market is steady. Whiting- Market is steady. Inventories remain light but are keeping pace with a light demand. Dairy Cheese- Market is firming. The CME markets continued to firm again this week. Pricing is now at its highest point for the year thus far. Demand remains good. Reports show that milk supplies are fairly tight worldwide and are putting additional pressure on the cheese markets. Butter- Market is softening. Butter production is up and is helping to slowly build inventories. Inventories last week increased by another 1.6 million lbs. Total inventories still remain less than half the amount of same time last year(20.4 versus 56.7 million lbs). Eggs Shell Eggs- Market is soft. Total egg inventories increased by another 4% from last week. Retail demand is listed as fair. Foodservice demand is listed as good. Jumbos and Large are listed in good supply. Egg Products- Market is steady. Beef Market is firmer. Live prices pushed higher last week and are now at levels not seen since 2003. Higher grain pricing remains a concern for the protein categories as feed costs are expected to increase. Overall beef production was reported as up just over 2% from previous week. Demand is listed as good. Grinds- Market is steady to softer. Demand remains good and product remains in tight supply. Pricing still remains well above same time last year. Ribs- Market is steady. Loins- Market is steady to firmer. Increased demand is putting additional pressure on the category. Chucks- Market is steady to firmer. Continued increased demand and additional exports continue to put pressure on pricing. Rounds- Market is steady to firmer. Demand is listed as good. Chucks- Market is steady to firmer. Pork Market is firm. Pork production was down last week. Total production was down about 3.3% from previous week. Futures continue to show firm pricing for the category as the year progresses. Bellies- Market is steady but firm. Inventories remain tight with a good demand. Forecasts shows pricing firming over the next few weeks. Reports show that the reason the current market has held steady is that availability is so tight that very little trading is being reported. Hams- Market is firm. Demand is reported as good. Exports continue to be strong and combined with reduced harvests are helping push pricing higher. Loins- Market is firm. Demand is listed as good. Butts- Market is firm. Exports remain very strong. Ribs- Market is steady. Demand is listed as softer. Wheat Wheat futures prices traded lower this week, but basis premium levels are firm to higher, leaving flour prices mostly flat. China’s winter wheat crop received some rain, and their government called supplies adequate; however reliable information about Chinese agricultural production can be difficult to obtain. Forecasts for important wheat growing regions of China and the U.S. are calling for dryer weather through the end of this month. It was thought the U.S. had lost export business to lower-priced competitors, but with the drop in futures prices this trend could be quickly reversed.
Soybean Oil This market has been a rollercoaster this week. Dropping on Thursday after rebounding from losses earlier in the week. The Libyan unrest continues to have an effect on the soybean oil market, as well as, other energy markets. US crude is up more than $4.00 in early trading. Gains in crude oil would normally be supportive for the oilseed markets, but the global political uncertainty taking crude oil higher is also making investors more cautious, causing them to exit some of the riskier agricultural markets. The overall up and down turn of the market this week makes it extremely difficult to book/buy with any certainty. Monitor trends closely and buy to meet immediate needs. Chicken Demand has been mostly basic with the majority of inquires seasonal. In general most inventory levels are in balance with current demand, for the exception of a few items. WOGs and whole birds are one of those items where inventory has become tight, with inquiries holding at market levels. Boneless and tenders are well supported, with tenders trading at full market. Whole breast are steady. Dark meat items such as legs, leg quarters, and thighs are tight with markets levels moving up this week. Wings continue to be weak, with this week’s market reflecting suppliers wanting to clear out some inventory. Turkey Markets are pretty active, more so then what we typically see this time of year. Undertone is strong on most items. Whole birds have seen a slight increase in markets this week as product becomes harder to secure. Raw material demand is active as is both fresh and frozen MST. Wings appear to be trending higher, as tom and hen two joints rate a full steady undertone with supplies less than adequate. Fresh breast meat has been harder to secure with potential of possible market increases. This may also be true for tenders as well. Thigh meat and drums Is limited in current availability.
Dry Beans: The dry market overall continues to see firm pricing. As with other crops, the availability of acreage for planting is affecting dry bean pricing. Pinto and black beans are both expected to continue to firm. Greater than normal export opportunities are present for black beans that are contributing to the price pressure. Imports Limited supply is still the primary concern for imports. Mandarin oranges are especially hard hit as contracts in China are not being fulfilled which puts pressure on products here in the US. with continued demand prices will continue to rise. Frozen Vegetables Weather issues have severely limited the flow of products like okra, broccoli, cauliflower, and asparagus into the US. The availability of acreage for planting of crops in the US is a major concern. Every indication is that with current demand, frozen vegetable pricing will continue to climb.
March 4, 2011 Produce California Lettuce & Mixed Vegetables Iceberg Lettuce: Growing conditions have improved, however the damage has been done to the iceberg crop, with no rebound in production volume expected through the end of the desert harvest season in late March. Prices will continue at extreme levels and quality will be poor, with heavy damage from epidermal blistering and peeling. Processed Salad: Salad processors are in an extreme deficit supply situation, unable to load trucks in a timely manner, and filling orders only at the 50 percent level. Force Majeure contract price increases continue to escalate. Romaine: The same scenario as exists with iceberg…blistering and peeling, small heads from which many damage leaves have been removed, and the resulting lightweight cartons. Low yields will continue. Prices extreme, quality poor. Romaine Hearts: Epidermal peeling is also an issue, although to a lesser degree compared to commodity romaine. An occasional misshapen head is present in the pack. Quality issues will continue through March. Prices extreme, quality fair. Green Leaf: Freeze damage present, although not to the extent that iceberg and romaine have been affected. Prices high, quality fair. Broccoli (bunched): The market is trending higher as we near the transition period for the harvest moving from the desert northward to Central California…beginning in mid-March. Prices high, quality good. Pin rot and water damage present in broccoli from Central California. Broccoli (crowns): Priced at a substantial premium compared to bunched broccoli. Prices high, quality good. Cauliflower: The market advanced again this week, with production levels down by 10 percent compared to February 2010. Prices high, quality good. Celery: The market firmed this week, with buyers stepping in at lower price levels. Quality is an issue, with blistering and peeling present in desert celery and pith in Oxnard. Prices high, quality fair. Carrots: Large sized carrots (jumbo, table) continue to be in extremely limited supply due to low yields during the harvest transition from the Southern San Joaquin Valley to the Imperial Valley. This shortage includes carrot sticks and carrot chunks (2 inch, 4 inch). No relief is expected until April. Shippers are unable to fill orders in full. Prices extreme, quality good. Artichokes: The cold winter has slowed plant growth; the size profile is heavy to the smaller sizes (36, 48, large loose)…these sizes offer the best value. Most samples are now frost-free. Prices moderate, quality good. Plentiful supplies on all sizes will become available by April. Asparagus: Prices remain high for late season production in Northern Mexico. Quality good. New crop harvesting in Central California has been set back by recent cold, wet growing conditions. Parsley (curly): Adequate availability, prices moderate, quality good. Parsley (Italian): Adequate availability, prices moderate, quality good. Spinach (bunched): Production beginning to recover…prices high, quality good. Kale (green): Good availability. Prices moderate, quality good. Kale (flowering): Steady availability for growers in the desert districts. Cilantro: Increasing supplies. Prices moderate, quality good. Green Onions: The market is gradually easing with improved weather conditions in Mexico, however planted acreage is below average. A meaningful increase in production is not expected until late March. Prices high, quality good. Leeks: Availability is adequate, prices high, quality good. Green Cabbage: Tight availability, prices high, quality good. Red Cabbage: Adequate availability, prices moderate, quality good. Bok Choy: Adequate supplies, prices high. Napa: Light supplies, prices high. Snow peas: Good availability…prices moderate, quality good. Garlic: Tight supplies, high prices…Reduced imports and poor quality from China. No relief until late summer. Spring Mix: Spring mix availability is gradually improving…growers have been able to re-introduce various red components into the mix. Prices high, quality good. Spinach (baby): Better availability, however occasional allocation still in effect, depending on the shipper. Arugula: Increasing production, adequate availability. Mache: Unavailable…quality poor. Berries Strawberries: Tight availability in the West…the harvest in Central Mexico is winding down and Oxnard continues with modest production volume. Prices high, quality fair. Plentiful availability for late season production in Florida. Raspberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blackberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blueberries: Late season harvest volume in Chile is decreasing…finishing by mid-April. New crop blueberries in Georgia and Florida will begin at that time. Still moderate supplies coming from Mexico. Prices high, quality good. California-Arizona Citrus Navel Oranges: Continued plentiful availability for California Navel oranges…no effects from cold weather or rain thus far. Prices low, quality excellent. Lemons: We are near the end of the season for desert lemons…the primary shipping district is now the San Joaquin Valley, with storage crop inventories for Ventura County growers being replenished for the summer shipping season. Good availability on all sizes, with best values being offered on the large sizes (75, 95, 115). Prices moderate, quality excellent. Limes (Persian): The market for large sizes is slowly easing, with much better availability and favorable prices for the small sizes (230, 250). Growers harvesting limes as early as possible in the growth cycle to take full advantage of current high market. Harvest area transition in Mexico to occur in late March. Prices high-to-extreme, quality good. Grapefruit: Good availability on Desert Rio Red variety in California & Arizona and Texas Rio Star in Texas. Prices low-to-moderate, quality excellent. Cara Cara Oranges: Now in peak season production. Moro Oranges: Production winding down…size profile heavy to 113’s & smaller. Mandarins: Good availability for medium and large sizes (24’s-36’s). Pummelos: Nearing the end of the season…best value on smaller sizes (14-18). Prices moderate, quality good. Minneola Tangelos: Season finished for desert growers…now shipping from Central & Southern California. Prices moderate, quality good. Pineapple: Production is beginning to increase in Costa Rica, Guatemala, Honduras and Panama…good availability is in the forecast for Easter. Mexican pineapples are also available. Melons Cantaloupes: Steady availability, market firm…prices high, quality excellent. Honeydews: Tight availability from Central America…Mexican harvesting getting underway…not enough volume to influence the market. Prices high, quality excellent. Watermelons: Increasing production from growers in the Guadalajara region in Southern Mexico. Prices moderate, quality excellent…both seedless and seeded varieties. Washington Apples and Pears Red Delicious: Good demand; market well supported by exports. Yields very good considering difficult growing conditions during spring and summer 2010. Markets are firm most sizes, expected to remain steady going into spring. Golden Delicious: Good availability, prices moderate. Bosc Pears: Good availability, prices moderate-to-high. D’Anjou Pears: Good availability, prices moderate-to-high. Bartlett Pears: New crop from Chile now available, prices moderate-to-high. Grapes & Soft Fruit Red Seedless Grapes: Supplies will be tight through late March with the transition from Flame seedless variety to Crimson. Prices moderate, quality good. Green Seedless Grapes: Availability increasing for Thompson seedless. Prices moderate, quality good. Kiwi (California): The first shipment of Chilean kiwi is now on the water, arriving in late March. California kiwi will continue to be available in the interim…transition will be smooth. Prices moderate, quality good. Avocados Hass: Calavo reports that the Mexican harvest is 2/3 complete, and the remaining 1/3 must last through July. The California Hass crop is 50 percent smaller compared to 2010. Chilean season is finished. The market continues to push higher on all sizes, with the greatest increases on the 48’s. Prices extreme, quality good. Eastern & Western Vegetables Green Bell Peppers: Limited availability and extreme prices on jumbo and extra large. Best availability on choice grade. Quality fair. Red Bell Peppers: Demand increasing, market firm. Prices moderate, quality good. Cucumbers: Tight supplies, production in Mexico winding down for the remainder of March. Prices high, quality fair. Green Beans: Good availability from growers in Florida and Central America. Prices moderate. Tight availability in Nogales. Prices extreme, quality poor. Eggplant: unavailable in Nogales and Florida. Product availability returning in April. Squash: Zucchini: Tight availability in Florida and Nogales. Prices extreme. Quality fair. Yellow: Plentiful supplies in Florida, adequate in Nogales. Florida: prices low, quality good. Nogales: prices high, quality fair. Tomatoes Round: The effects are now being manifested from the freeze that occurred in Mexico during early February…acreage has been lost and production is on the decline…causing upward pressure in the market. Storage inventories are depleted…the upward price trend will continue. Prices high, quality fair. Roma: Same as round tomatoes. Cherry: Same as round tomatoes. Grape: Same as round tomatoes. Potatoes (Idaho) Russets: Availability has tightened considerably for the US #2 Idaho Russets, with a sharp advance in the market this week. Prices are also on the rise for carton packed, small sized potatoes (80, 90, 100). We can expect to see continued subtle to sharp advances in prices on a weekly basis going forward. Prices high, quality good. Onions (Northwest) Yellow: Onions are in oversupply…Mexican growers in full production, supplying the southwestern and southeastern U.S. Packers of storage crop onions in the Northwest will continue to ship through the month of April. Prices low, quality good. Red: Red onions are in oversupply. Quality good, market low. White: Same as yellow onions. Soybean Futures The soybean complex has traded all over this week. The futures price started higher in response to ideas that U.S. soybeans out of the Pacific Northwest are once again competitive with Brazilian origin for the next few weeks. Surging soybean oil also helps as the idea of manufacturing bio-diesel will become profitable due to surging gasoline prices. The complex sold off sharply in response to the break in corn but managed to recover most of those losses by day's end with the exception of soybean meal. Basis levels for soybeans are mostly steady with the Gulf appearing a bit easier. March beans gain on the spread due to the lack of deliveries against the March contract. Forward spreads within the old crop do little, maybe a bit easier. Spreads within new crop firmed a bit, in part to the effort of new crop beans trying to secure acres for the upcoming season. If the acres are not contracted, beans within the U.S. will continue to tighten making the recent tight years pale in comparison. The technical look for soybeans and soybean meal is a bit bothersome. Soybeans and soybean meal match last Friday's highs and fail to follow through. The price action is suggesting an interim double top of the up flagging efforts from last week's lows. Business is expected to fade in the coming weeks/months as the South American new crop comes on line. This holds true for the soybean oil market as well. Soybean Oil The continued unrest will force drastic market swings such as we have seen in the last two weeks. Export sales continue to be noticeably higher which also contributes to the strong market. Outside markets continue to drive the upward trend seen in the soybean oil market. Look for this market to remain strong with occasional, short lived, small drops. Discuss forward strategy with your oil partner. Mideast/North African Tension, Energies Continued civil unrest in Libya and growing concern over oil supply disruptions sent energies higher. Libyan sources contend that oil production and shipments are down 50%, but industry sources suggest that production is down far more. It is thought that the ships that have been loaded in the last several days have been loaded with inventory accumulated prior to the civil unrest and that new oil is not being received from the oil fields. The Department of Energy released its weekly numbers on Wednesday. Crude Oil supplies were down 400,000 barrels for the week, up 4.7 million from a year ago. Total gasoline stocks dropped by 3.6 million barrels, up 2.8 million barrels from a year ago. Gasoline and oil stocks have been increasing mostly every week and gasoline prices at the pump are still going higher. We continue to believe that energy prices will continue to remain strong and find support on dips as long as civil unrest remains in the Middle East and North Africa. This unrest will have a direct affect on commodities traded daily. As long as this country is in disarray, expect commodities to remain strong.
Seafood News from the Gulf- The area of Federal Waters closed to fishing in the Gulf remains unchanged since February 1st. The current area closed to fishing remains at 1041 square miles. Gulf Shrimp- Market is steady to firm. Black Tiger Shrimp- Market is mixed. Several sizes are listed as firming with the exception of 16-20 and 21-25 Headless Shell On as these are listed as weaker. Inventories are listed as tighter while demand remains good. White Shrimp- Market is firming. 31-35 and smaller are listed as firming because of tighter inventories. Larger sizes are listed as steady. Salmon- Market is steady to firm. Replacement costs are noted as higher. King Crab- Market is firm. Snow Crab- Market is steady but firm. Inventories remain very light with a good demand. Warm Water Lobster Tails- Market is steady. Demand is listed as low. American Lobster Tails- Market is steady. Smaller sizes are reported to have limited supplies. Cod- Market is firm. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firming. Demand is listed as good. Pollock- Market is steady. Inventories are reported as good for a light to moderate demand. Whiting- Market is steady. Even though supplies are reported as very light, demand remains low and are keeping inventories in pace with demand. Domestic Catfish- Market is firm. Inventories remain a concern. Scallops- Market is steady. Inventories remain light with a demand listed as down. Tilapia- Market is steady but firm. Demand is listed as good with replacement costs listed as higher. Dairy Why are dairy prices continuing to rise? Weather issues- Drought in New Zealand has reduced their milk production. Heavy rains in Australia reduced their milk production. Weather issues in South America having impact on Dairy Market. Strong Demand from both Russia and China for dairy products. Low global inventories on dairy products. Higher international cheese prices. Increased global grain prices. Cheese-Market is firm. Pricing continued to climb for both the CME Block and the Barrel markets this week. Both markets are trending well above same time last year and the gap has continued to increase. Reports show that Mozzarella demand has remained strong recently. Butter- Market is firming. Pricing has continued to increase this week as Wednesday saw a sharp increase in market pricing. Pricing remains well above same time last year. Eggs Shell Eggs- Market is soft. Retail demand is listed as poor to fair. Reports show that more advertising is set for next week. Inventories are listed as long. Inventories are up 12% from last week. Egg Products- Market is steady. Beef Market is firm. Live cattle pricing continues to climb. Total beef production for last week was 1.5% lower than previous week. Packers have announced reduced hours for the near future which may lead to even tighter inventories. March is expected to be a tight month on availability. Grilling season is just around the corner and demand should seasonally increase as we get closer to summer. Futures are still showing firmer pricing as the year progresses. Chucks- Market is steady but firm. Rounds- Market is steady but firm. Earlier in the week saw pricing firm across the board while later in the week pricing remained more steady. Loins-Market is steady but firm. As with the rounds pricing advanced earlier this week and held its ground thru the end of the week. Upcoming grilling season is expected to put additional pressure on demand and pricing. Ribs- Market is firming. This market is expected to firm in pricing over the next few weeks. Grinds-Market is softening. Short term pricing has shown signs of weakening. Long term expectations show there could be some strength come back into pricing as we get closer to grilling season. Pork Market is steady. Total pork production was up .9% last week versus the week before and steady with same time last year. Live prices continue to trend higher than same time last year with futures showing pricing higher as we near summer. Exports have eased after the strong demand the past several weeks. Bellies- Market is firm. Report show pricing continuing to remain above last year as we head into the summer months. Hams- Market is steady but firm. Exports have eased but Easter demand is holding pricing in line. Demand is listed as average for this time of the year. Butts- Market has softened. Pricing has softened thru the week. Export demand is down and reports show that pricing could soften over the next few weeks if that demand does not pick back up. Ribs- Market is steady. Loins- Market is firm. Reports show heavy promoting over the next few weeks which should help increase demand. Chicken The markets remain on solid ground. With higher priced proteins, chicken has become an alternative source. High corn prices and transportation costs have also played a part in the market levels we’ve seen this week. WOGs and whole birds are short of full needs, and remain harder to secure. Markets this week have seen daily increases as these items have become tighter. This trend could continue into next week. Whole breast availability is limited and trade at current levels. Boneless and tenders also trade at higher levels as these items are limited in supply. Dark meat trades at steady levels to higher. Leg quarters, legs and thighs are adequate for current needs and are moving at current market levels. Wings are starting to see some interest as market levels dropped the last few weeks. This week though this market has remained steady. Turkey The turkey markets are described as better than seasonal as inquires are better than the norm for the first of March. Overall most items are trading at full market or better. Whole birds have traded at full market or better for end of March into April, but limited or no availability for current ship appears to be available. Fresh and frozen breast meat, thigh meat, drums and wings appear to be the most sought after items on the list. The turkey complex is sitting in a current position that leads most to believe it will remain solid through the spring.
Canned fruits and vegetables As the year progresses things are tightening and beets are an item to watch in canned goods. At this point restrictions have not been placed but movement is being closely monitored and restrictions could come at any time. For canned goods in general fairly well balanced inventories and the coming inflation concerns canners are not offering the kind of deals seen this time last year. Pasta Wheat futures and finished goods demand are the primary drivers of pasta prices. Increases in semolina prices to manufactures are continuing to pressure suppliers to increase prices on finished pasta goods. Frozen Vegetables The talk this week in frozen has been almost in unison across suppliers. Inflation, inflation, inflation. But there is a catch that makes it even worse. For about a year and half pricing for frozen vegetables has been deflated. Suppliers are expecting drastic price increases with the new pack that would bring pricing not just to pre deflation levels but to even higher levels due to increases in nearly all cost inputs. Market Report
Inflation for 2011 Expect 5-7 % inflation over the next 12-18 months for Foodservice as well as Retail. Many global factors driving costs: Weak US Dollar Rising Energy Prices Increased Support for Ethanol – driving corn and feed prices up. High prices offered for Corn , reducing the planting acreage for other products. Strong Global GDP (led by China) Shortfall in World Wheat Production Commodity Speculation Seafood Gulf Shrimp- Market is steady. Inventory on larger sizes remains tight and pricing on the larger sizes is listed as firm. Other sizes are listed as steady but pricing varies from supplier to supplier. Black Tiger Shrimp- Market is steady. White Shrimp- Market is firming. Larger count shrimp are listed as steady. 31-35 and smaller HL/SO are listed as firm with smaller sizes showing additional firming in pricing. Mexican Shrimp- Market is steady. U15 and larger inventories are in tighter supply and pricing is firmer. Warm Water Lobster Tails- Market is steady. North American Lobster Tails- Market is steady to softening. Mid-sized products are listed as weak with pricing varying between suppliers. Small sizes are steady but inventories are tight. Salmon- Market is firming. Inventories are listed as light for the entire category. Demand is reported as good. King Crab- Market is firm. Inventories remain tight and replacement product is listed as very limited. Snow Crab- Market is firm. Inventories remain tight with 5-8’s being reported as being very tight. Alaskan Opilio Crab- Market is firm. Supplies are tight for a good demand. Dungeness Crab- Market is firm. Inventories remain light for an active demand. Pangasius- Market is firming. Reports show that replacement costs continue to rise. Demand is listed as good. Domestic Catfish- Market is firm. Reports show that availability is a concern as demand is outpacing supplies. Tilapia- Market is steady but firm. Scallops- Market is steady but firm. Inventories remain light. Cod- Market is firming. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firmer. Demand is listed as good. Pollock- Market is steady. Whiting- Market is steady. Inventories remain light but are keeping pace with a light demand. Dairy Cheese- Market is firming. The CME markets continued to firm again this week. Pricing is now at its highest point for the year thus far. Demand remains good. Reports show that milk supplies are fairly tight worldwide and are putting additional pressure on the cheese markets. Butter- Market is softening. Butter production is up and is helping to slowly build inventories. Inventories last week increased by another 1.6 million lbs. Total inventories still remain less than half the amount of same time last year(20.4 versus 56.7 million lbs). Eggs Shell Eggs- Market is soft. Total egg inventories increased by another 4% from last week. Retail demand is listed as fair. Foodservice demand is listed as good. Jumbos and Large are listed in good supply. Egg Products- Market is steady. Beef Market is firmer. Live prices pushed higher last week and are now at levels not seen since 2003. Higher grain pricing remains a concern for the protein categories as feed costs are expected to increase. Overall beef production was reported as up just over 2% from previous week. Demand is listed as good. Grinds- Market is steady to softer. Demand remains good and product remains in tight supply. Pricing still remains well above same time last year. Ribs- Market is steady. Loins- Market is steady to firmer. Increased demand is putting additional pressure on the category. Chucks- Market is steady to firmer. Continued increased demand and additional exports continue to put pressure on pricing. Rounds- Market is steady to firmer. Demand is listed as good. Chucks- Market is steady to firmer. Pork Market is firm. Pork production was down last week. Total production was down about 3.3% from previous week. Futures continue to show firm pricing for the category as the year progresses. Bellies- Market is steady but firm. Inventories remain tight with a good demand. Forecasts shows pricing firming over the next few weeks. Reports show that the reason the current market has held steady is that availability is so tight that very little trading is being reported. Hams- Market is firm. Demand is reported as good. Exports continue to be strong and combined with reduced harvests are helping push pricing higher. Loins- Market is firm. Demand is listed as good. Butts- Market is firm. Exports remain very strong. Ribs- Market is steady. Demand is listed as softer. Wheat Wheat futures prices traded lower this week, but basis premium levels are firm to higher, leaving flour prices mostly flat. China’s winter wheat crop received some rain, and their government called supplies adequate; however reliable information about Chinese agricultural production can be difficult to obtain. Forecasts for important wheat growing regions of China and the U.S. are calling for dryer weather through the end of this month. It was thought the U.S. had lost export business to lower-priced competitors, but with the drop in futures prices this trend could be quickly reversed.
Soybean Oil This market has been a rollercoaster this week. Dropping on Thursday after rebounding from losses earlier in the week. The Libyan unrest continues to have an effect on the soybean oil market, as well as, other energy markets. US crude is up more than $4.00 in early trading. Gains in crude oil would normally be supportive for the oilseed markets, but the global political uncertainty taking crude oil higher is also making investors more cautious, causing them to exit some of the riskier agricultural markets. The overall up and down turn of the market this week makes it extremely difficult to book/buy with any certainty. Monitor trends closely and buy to meet immediate needs. Chicken Demand has been mostly basic with the majority of inquires seasonal. In general most inventory levels are in balance with current demand, for the exception of a few items. WOGs and whole birds are one of those items where inventory has become tight, with inquiries holding at market levels. Boneless and tenders are well supported, with tenders trading at full market. Whole breast are steady. Dark meat items such as legs, leg quarters, and thighs are tight with markets levels moving up this week. Wings continue to be weak, with this week’s market reflecting suppliers wanting to clear out some inventory. Turkey Markets are pretty active, more so then what we typically see this time of year. Undertone is strong on most items. Whole birds have seen a slight increase in markets this week as product becomes harder to secure. Raw material demand is active as is both fresh and frozen MST. Wings appear to be trending higher, as tom and hen two joints rate a full steady undertone with supplies less than adequate. Fresh breast meat has been harder to secure with potential of possible market increases. This may also be true for tenders as well. Thigh meat and drums Is limited in current availability.
Dry Beans: The dry market overall continues to see firm pricing. As with other crops, the availability of acreage for planting is affecting dry bean pricing. Pinto and black beans are both expected to continue to firm. Greater than normal export opportunities are present for black beans that are contributing to the price pressure. Imports Limited supply is still the primary concern for imports. Mandarin oranges are especially hard hit as contracts in China are not being fulfilled which puts pressure on products here in the US. with continued demand prices will continue to rise. Frozen Vegetables Weather issues have severely limited the flow of products like okra, broccoli, cauliflower, and asparagus into the US. The availability of acreage for planting of crops in the US is a major concern. Every indication is that with current demand, frozen vegetable pricing will continue to climb. Market Report Produce California Lettuce & Mixed Vegetables Iceberg Lettuce: Growing conditions have improved, however the damage has been done to the iceberg crop, with no rebound in production volume expected through the end of the desert harvest season in late March. Prices will continue at extreme levels and quality will be poor, with heavy damage from epidermal blistering and peeling. Processed Salad: Salad processors are in an extreme deficit supply situation, unable to load trucks in a timely manner, and filling orders only at the 50 percent level. Force Majeure contract price increases continue to escalate. Romaine: The same scenario as exists with iceberg…blistering and peeling, small heads from which many damage leaves have been removed, and the resulting lightweight cartons. Low yields will continue. Prices extreme, quality poor. Romaine Hearts: Epidermal peeling is also an issue, although to a lesser degree compared to commodity romaine. An occasional misshapen head is present in the pack. Quality issues will continue through March. Prices extreme, quality fair. Green Leaf: Freeze damage present, although not to the extent that iceberg and romaine have been affected. Prices high, quality fair. Broccoli (bunched): The market is trending higher as we near the transition period for the harvest moving from the desert northward to Central California…beginning in mid-March. Prices high, quality good. Pin rot and water damage present in broccoli from Central California. Broccoli (crowns): Priced at a substantial premium compared to bunched broccoli. Prices high, quality good. Cauliflower: The market advanced again this week, with production levels down by 10 percent compared to February 2010. Prices high, quality good. Celery: The market firmed this week, with buyers stepping in at lower price levels. Quality is an issue, with blistering and peeling present in desert celery and pith in Oxnard. Prices high, quality fair. Carrots: Large sized carrots (jumbo, table) continue to be in extremely limited supply due to low yields during the harvest transition from the Southern San Joaquin Valley to the Imperial Valley. This shortage includes carrot sticks and carrot chunks (2 inch, 4 inch). No relief is expected until April. Shippers are unable to fill orders in full. Prices extreme, quality good. Artichokes: The cold winter has slowed plant growth; the size profile is heavy to the smaller sizes (36, 48, large loose)…these sizes offer the best value. Most samples are now frost-free. Prices moderate, quality good. Plentiful supplies on all sizes will become available by April. Asparagus: Prices remain high for late season production in Northern Mexico. Quality good. New crop harvesting in Central California has been set back by recent cold, wet growing conditions. Parsley (curly): Adequate availability, prices moderate, quality good. Parsley (Italian): Adequate availability, prices moderate, quality good. Spinach (bunched): Production beginning to recover…prices high, quality good. Kale (green): Good availability. Prices moderate, quality good. Kale (flowering): Steady availability for growers in the desert districts. Cilantro: Increasing supplies. Prices moderate, quality good. Green Onions: The market is gradually easing with improved weather conditions in Mexico, however planted acreage is below average. A meaningful increase in production is not expected until late March. Prices high, quality good. Leeks: Availability is adequate, prices high, quality good. Green Cabbage: Tight availability, prices high, quality good. Red Cabbage: Adequate availability, prices moderate, quality good. Bok Choy: Adequate supplies, prices high. Napa: Light supplies, prices high. Snow peas: Good availability…prices moderate, quality good. Garlic: Tight supplies, high prices…Reduced imports and poor quality from China. No relief until late summer. Spring Mix: Spring mix availability is gradually improving…growers have been able to re-introduce various red components into the mix. Prices high, quality good. Spinach (baby): Better availability, however occasional allocation still in effect, depending on the shipper. Arugula: Increasing production, adequate availability. Mache: Unavailable…quality poor. Berries Strawberries: Tight availability in the West…the harvest in Central Mexico is winding down and Oxnard continues with modest production volume. Prices high, quality fair. Plentiful availability for late season production in Florida. Raspberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blackberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blueberries: Late season harvest volume in Chile is decreasing…finishing by mid-April. New crop blueberries in Georgia and Florida will begin at that time. Still moderate supplies coming from Mexico. Prices high, quality good. California-Arizona Citrus Navel Oranges: Continued plentiful availability for California Navel oranges…no effects from cold weather or rain thus far. Prices low, quality excellent. Lemons: We are near the end of the season for desert lemons…the primary shipping district is now the San Joaquin Valley, with storage crop inventories for Ventura County growers being replenished for the summer shipping season. Good availability on all sizes, with best values being offered on the large sizes (75, 95, 115). Prices moderate, quality excellent. Limes (Persian): The market for large sizes is slowly easing, with much better availability and favorable prices for the small sizes (230, 250). Growers harvesting limes as early as possible in the growth cycle to take full advantage of current high market. Harvest area transition in Mexico to occur in late March. Prices high-to-extreme, quality good. Grapefruit: Good availability on Desert Rio Red variety in California & Arizona and Texas Rio Star in Texas. Prices low-to-moderate, quality excellent. Cara Cara Oranges: Now in peak season production. Moro Oranges: Production winding down…size profile heavy to 113’s & smaller. Mandarins: Good availability for medium and large sizes (24’s-36’s). Pummelos: Nearing the end of the season…best value on smaller sizes (14-18). Prices moderate, quality good. Minneola Tangelos: Season finished for desert growers…now shipping from Central & Southern California. Prices moderate, quality good. Pineapple: Production is beginning to increase in Costa Rica, Guatemala, Honduras and Panama…good availability is in the forecast for Easter. Mexican pineapples are also available. Melons Cantaloupes: Steady availability, market firm…prices high, quality excellent. Honeydews: Tight availability from Central America…Mexican harvesting getting underway…not enough volume to influence the market. Prices high, quality excellent. Watermelons: Increasing production from growers in the Guadalajara region in Southern Mexico. Prices moderate, quality excellent…both seedless and seeded varieties. Washington Apples and Pears Red Delicious: Good demand; market well supported by exports. Yields very good considering difficult growing conditions during spring and summer 2010. Markets are firm most sizes, expected to remain steady going into spring. Golden Delicious: Good availability, prices moderate. Bosc Pears: Good availability, prices moderate-to-high. D’Anjou Pears: Good availability, prices moderate-to-high. Bartlett Pears: New crop from Chile now available, prices moderate-to-high. Grapes & Soft Fruit Red Seedless Grapes: Supplies will be tight through late March with the transition from Flame seedless variety to Crimson. Prices moderate, quality good. Green Seedless Grapes: Availability increasing for Thompson seedless. Prices moderate, quality good. Kiwi (California): The first shipment of Chilean kiwi is now on the water, arriving in late March. California kiwi will continue to be available in the interim…transition will be smooth. Prices moderate, quality good. Avocados Hass: Calavo reports that the Mexican harvest is 2/3 complete, and the remaining 1/3 must last through July. The California Hass crop is 50 percent smaller compared to 2010. Chilean season is finished. The market continues to push higher on all sizes, with the greatest increases on the 48’s. Prices extreme, quality good. Eastern & Western Vegetables Green Bell Peppers: Limited availability and extreme prices on jumbo and extra large. Best availability on choice grade. Quality fair. Red Bell Peppers: Demand increasing, market firm. Prices moderate, quality good. Cucumbers: Tight supplies, production in Mexico winding down for the remainder of March. Prices high, quality fair. Green Beans: Good availability from growers in Florida and Central America. Prices moderate. Tight availability in Nogales. Prices extreme, quality poor. Eggplant: unavailable in Nogales and Florida. Product availability returning in April. Squash: Zucchini: Tight availability in Florida and Nogales. Prices extreme. Quality fair. Yellow: Plentiful supplies in Florida, adequate in Nogales. Florida: prices low, quality good. Nogales: prices high, quality fair. Tomatoes Round: The effects are now being manifested from the freeze that occurred in Mexico during early February…acreage has been lost and production is on the decline…causing upward pressure in the market. Storage inventories are depleted…the upward price trend will continue. Prices high, quality fair. Roma: Same as round tomatoes. Cherry: Same as round tomatoes. Grape: Same as round tomatoes. Potatoes (Idaho) Russets: Availability has tightened considerably for the US #2 Idaho Russets, with a sharp advance in the market this week. Prices are also on the rise for carton packed, small sized potatoes (80, 90, 100). We can expect to see continued subtle to sharp advances in prices on a weekly basis going forward. Prices high, quality good. Onions (Northwest) Yellow: Onions are in oversupply…Mexican growers in full production, supplying the southwestern and southeastern U.S. Packers of storage crop onions in the Northwest will continue to ship through the month of April. Prices low, quality good. Red: Red onions are in oversupply. Quality good, market low. White: Same as yellow onions. Soybean Futures The soybean complex has traded all over this week. The futures price started higher in response to ideas that U.S. soybeans out of the Pacific Northwest are once again competitive with Brazilian origin for the next few weeks. Surging soybean oil also helps as the idea of manufacturing bio-diesel will become profitable due to surging gasoline prices. The complex sold off sharply in response to the break in corn but managed to recover most of those losses by day's end with the exception of soybean meal. Basis levels for soybeans are mostly steady with the Gulf appearing a bit easier. March beans gain on the spread due to the lack of deliveries against the March contract. Forward spreads within the old crop do little, maybe a bit easier. Spreads within new crop firmed a bit, in part to the effort of new crop beans trying to secure acres for the upcoming season. If the acres are not contracted, beans within the U.S. will continue to tighten making the recent tight years pale in comparison. The technical look for soybeans and soybean meal is a bit bothersome. Soybeans and soybean meal match last Friday's highs and fail to follow through. The price action is suggesting an interim double top of the up flagging efforts from last week's lows. Business is expected to fade in the coming weeks/months as the South American new crop comes on line. This holds true for the soybean oil market as well. Soybean Oil The continued unrest will force drastic market swings such as we have seen in the last two weeks. Export sales continue to be noticeably higher which also contributes to the strong market. Outside markets continue to drive the upward trend seen in the soybean oil market. Look for this market to remain strong with occasional, short lived, small drops. Discuss forward strategy with your oil partner. Mideast/North African Tension, Energies Continued civil unrest in Libya and growing concern over oil supply disruptions sent energies higher. Libyan sources contend that oil production and shipments are down 50%, but industry sources suggest that production is down far more. It is thought that the ships that have been loaded in the last several days have been loaded with inventory accumulated prior to the civil unrest and that new oil is not being received from the oil fields. The Department of Energy released its weekly numbers on Wednesday. Crude Oil supplies were down 400,000 barrels for the week, up 4.7 million from a year ago. Total gasoline stocks dropped by 3.6 million barrels, up 2.8 million barrels from a year ago. Gasoline and oil stocks have been increasing mostly every week and gasoline prices at the pump are still going higher. We continue to believe that energy prices will continue to remain strong and find support on dips as long as civil unrest remains in the Middle East and North Africa. This unrest will have a direct affect on commodities traded daily. As long as this country is in disarray, expect commodities to remain strong.
Seafood News from the Gulf- The area of Federal Waters closed to fishing in the Gulf remains unchanged since February 1st. The current area closed to fishing remains at 1041 square miles. Gulf Shrimp- Market is steady to firm. Black Tiger Shrimp- Market is mixed. Several sizes are listed as firming with the exception of 16-20 and 21-25 Headless Shell On as these are listed as weaker. Inventories are listed as tighter while demand remains good. White Shrimp- Market is firming. 31-35 and smaller are listed as firming because of tighter inventories. Larger sizes are listed as steady. Salmon- Market is steady to firm. Replacement costs are noted as higher. King Crab- Market is firm. Snow Crab- Market is steady but firm. Inventories remain very light with a good demand. Warm Water Lobster Tails- Market is steady. Demand is listed as low. American Lobster Tails- Market is steady. Smaller sizes are reported to have limited supplies. Cod- Market is firm. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firming. Demand is listed as good. Pollock- Market is steady. Inventories are reported as good for a light to moderate demand. Whiting- Market is steady. Even though supplies are reported as very light, demand remains low and are keeping inventories in pace with demand. Domestic Catfish- Market is firm. Inventories remain a concern. Scallops- Market is steady. Inventories remain light with a demand listed as down. Tilapia- Market is steady but firm. Demand is listed as good with replacement costs listed as higher. Dairy Why are dairy prices continuing to rise? Weather issues- Drought in New Zealand has reduced their milk production. Heavy rains in Australia reduced their milk production. Weather issues in South America having impact on Dairy Market. Strong Demand from both Russia and China for dairy products. Low global inventories on dairy products. Higher international cheese prices. Increased global grain prices. Cheese-Market is firm. Pricing continued to climb for both the CME Block and the Barrel markets this week. Both markets are trending well above same time last year and the gap has continued to increase. Reports show that Mozzarella demand has remained strong recently. Butter- Market is firming. Pricing has continued to increase this week as Wednesday saw a sharp increase in market pricing. Pricing remains well above same time last year. Eggs Shell Eggs- Market is soft. Retail demand is listed as poor to fair. Reports show that more advertising is set for next week. Inventories are listed as long. Inventories are up 12% from last week. Egg Products- Market is steady. Beef Market is firm. Live cattle pricing continues to climb. Total beef production for last week was 1.5% lower than previous week. Packers have announced reduced hours for the near future which may lead to even tighter inventories. March is expected to be a tight month on availability. Grilling season is just around the corner and demand should seasonally increase as we get closer to summer. Futures are still showing firmer pricing as the year progresses. Chucks- Market is steady but firm. Rounds- Market is steady but firm. Earlier in the week saw pricing firm across the board while later in the week pricing remained more steady. Loins-Market is steady but firm. As with the rounds pricing advanced earlier this week and held its ground thru the end of the week. Upcoming grilling season is expected to put additional pressure on demand and pricing. Ribs- Market is firming. This market is expected to firm in pricing over the next few weeks. Grinds-Market is softening. Short term pricing has shown signs of weakening. Long term expectations show there could be some strength come back into pricing as we get closer to grilling season. Pork Market is steady. Total pork production was up .9% last week versus the week before and steady with same time last year. Live prices continue to trend higher than same time last year with futures showing pricing higher as we near summer. Exports have eased after the strong demand the past several weeks. Bellies- Market is firm. Report show pricing continuing to remain above last year as we head into the summer months. Hams- Market is steady but firm. Exports have eased but Easter demand is holding pricing in line. Demand is listed as average for this time of the year. Butts- Market has softened. Pricing has softened thru the week. Export demand is down and reports show that pricing could soften over the next few weeks if that demand does not pick back up. Ribs- Market is steady. Loins- Market is firm. Reports show heavy promoting over the next few weeks which should help increase demand. Chicken The markets remain on solid ground. With higher priced proteins, chicken has become an alternative source. High corn prices and transportation costs have also played a part in the market levels we’ve seen this week. WOGs and whole birds are short of full needs, and remain harder to secure. Markets this week have seen daily increases as these items have become tighter. This trend could continue into next week. Whole breast availability is limited and trade at current levels. Boneless and tenders also trade at higher levels as these items are limited in supply. Dark meat trades at steady levels to higher. Leg quarters, legs and thighs are adequate for current needs and are moving at current market levels. Wings are starting to see some interest as market levels dropped the last few weeks. This week though this market has remained steady. Turkey The turkey markets are described as better than seasonal as inquires are better than the norm for the first of March. Overall most items are trading at full market or better. Whole birds have traded at full market or better for end of March into April, but limited or no availability for current ship appears to be available. Fresh and frozen breast meat, thigh meat, drums and wings appear to be the most sought after items on the list. The turkey complex is sitting in a current position that leads most to believe it will remain solid through the spring.
Canned fruits and vegetables As the year progresses things are tightening and beets are an item to watch in canned goods. At this point restrictions have not been placed but movement is being closely monitored and restrictions could come at any time. For canned goods in general fairly well balanced inventories and the coming inflation concerns canners are not offering the kind of deals seen this time last year. Pasta Wheat futures and finished goods demand are the primary drivers of pasta prices. Increases in semolina prices to manufactures are continuing to pressure suppliers to increase prices on finished pasta goods. Frozen Vegetables The talk this week in frozen has been almost in unison across suppliers. Inflation, inflation, inflation. But there is a catch that makes it even worse. For about a year and half pricing for frozen vegetables has been deflated. Suppliers are expecting drastic price increases with the new pack that would bring pricing not just to pre deflation levels but to even higher levels due to increases in nearly all cost inputs. Market Report
Inflation for 2011 Expect 5-7 % inflation over the next 12-18 months for Foodservice as well as Retail. Many global factors driving costs: Weak US Dollar Rising Energy Prices Increased Support for Ethanol – driving corn and feed prices up. High prices offered for Corn , reducing the planting acreage for other products. Strong Global GDP (led by China) Shortfall in World Wheat Production Commodity Speculation Seafood Gulf Shrimp- Market is steady. Inventory on larger sizes remains tight and pricing on the larger sizes is listed as firm. Other sizes are listed as steady but pricing varies from supplier to supplier. Black Tiger Shrimp- Market is steady. White Shrimp- Market is firming. Larger count shrimp are listed as steady. 31-35 and smaller HL/SO are listed as firm with smaller sizes showing additional firming in pricing. Mexican Shrimp- Market is steady. U15 and larger inventories are in tighter supply and pricing is firmer. Warm Water Lobster Tails- Market is steady. North American Lobster Tails- Market is steady to softening. Mid-sized products are listed as weak with pricing varying between suppliers. Small sizes are steady but inventories are tight. Salmon- Market is firming. Inventories are listed as light for the entire category. Demand is reported as good. King Crab- Market is firm. Inventories remain tight and replacement product is listed as very limited. Snow Crab- Market is firm. Inventories remain tight with 5-8’s being reported as being very tight. Alaskan Opilio Crab- Market is firm. Supplies are tight for a good demand. Dungeness Crab- Market is firm. Inventories remain light for an active demand. Pangasius- Market is firming. Reports show that replacement costs continue to rise. Demand is listed as good. Domestic Catfish- Market is firm. Reports show that availability is a concern as demand is outpacing supplies. Tilapia- Market is steady but firm. Scallops- Market is steady but firm. Inventories remain light. Cod- Market is firming. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firmer. Demand is listed as good. Pollock- Market is steady. Whiting- Market is steady. Inventories remain light but are keeping pace with a light demand. Dairy Cheese- Market is firming. The CME markets continued to firm again this week. Pricing is now at its highest point for the year thus far. Demand remains good. Reports show that milk supplies are fairly tight worldwide and are putting additional pressure on the cheese markets. Butter- Market is softening. Butter production is up and is helping to slowly build inventories. Inventories last week increased by another 1.6 million lbs. Total inventories still remain less than half the amount of same time last year(20.4 versus 56.7 million lbs). Eggs Shell Eggs- Market is soft. Total egg inventories increased by another 4% from last week. Retail demand is listed as fair. Foodservice demand is listed as good. Jumbos and Large are listed in good supply. Egg Products- Market is steady. Beef Market is firmer. Live prices pushed higher last week and are now at levels not seen since 2003. Higher grain pricing remains a concern for the protein categories as feed costs are expected to increase. Overall beef production was reported as up just over 2% from previous week. Demand is listed as good. Grinds- Market is steady to softer. Demand remains good and product remains in tight supply. Pricing still remains well above same time last year. Ribs- Market is steady. Loins- Market is steady to firmer. Increased demand is putting additional pressure on the category. Chucks- Market is steady to firmer. Continued increased demand and additional exports continue to put pressure on pricing. Rounds- Market is steady to firmer. Demand is listed as good. Chucks- Market is steady to firmer. Pork Market is firm. Pork production was down last week. Total production was down about 3.3% from previous week. Futures continue to show firm pricing for the category as the year progresses. Bellies- Market is steady but firm. Inventories remain tight with a good demand. Forecasts shows pricing firming over the next few weeks. Reports show that the reason the current market has held steady is that availability is so tight that very little trading is being reported. Hams- Market is firm. Demand is reported as good. Exports continue to be strong and combined with reduced harvests are helping push pricing higher. Loins- Market is firm. Demand is listed as good. Butts- Market is firm. Exports remain very strong. Ribs- Market is steady. Demand is listed as softer. Wheat Wheat futures prices traded lower this week, but basis premium levels are firm to higher, leaving flour prices mostly flat. China’s winter wheat crop received some rain, and their government called supplies adequate; however reliable information about Chinese agricultural production can be difficult to obtain. Forecasts for important wheat growing regions of China and the U.S. are calling for dryer weather through the end of this month. It was thought the U.S. had lost export business to lower-priced competitors, but with the drop in futures prices this trend could be quickly reversed.
Soybean Oil This market has been a rollercoaster this week. Dropping on Thursday after rebounding from losses earlier in the week. The Libyan unrest continues to have an effect on the soybean oil market, as well as, other energy markets. US crude is up more than $4.00 in early trading. Gains in crude oil would normally be supportive for the oilseed markets, but the global political uncertainty taking crude oil higher is also making investors more cautious, causing them to exit some of the riskier agricultural markets. The overall up and down turn of the market this week makes it extremely difficult to book/buy with any certainty. Monitor trends closely and buy to meet immediate needs. Chicken Demand has been mostly basic with the majority of inquires seasonal. In general most inventory levels are in balance with current demand, for the exception of a few items. WOGs and whole birds are one of those items where inventory has become tight, with inquiries holding at market levels. Boneless and tenders are well supported, with tenders trading at full market. Whole breast are steady. Dark meat items such as legs, leg quarters, and thighs are tight with markets levels moving up this week. Wings continue to be weak, with this week’s market reflecting suppliers wanting to clear out some inventory. Turkey Markets are pretty active, more so then what we typically see this time of year. Undertone is strong on most items. Whole birds have seen a slight increase in markets this week as product becomes harder to secure. Raw material demand is active as is both fresh and frozen MST. Wings appear to be trending higher, as tom and hen two joints rate a full steady undertone with supplies less than adequate. Fresh breast meat has been harder to secure with potential of possible market increases. This may also be true for tenders as well. Thigh meat and drums Is limited in current availability.
Dry Beans: The dry market overall continues to see firm pricing. As with other crops, the availability of acreage for planting is affecting dry bean pricing. Pinto and black beans are both expected to continue to firm. Greater than normal export opportunities are present for black beans that are contributing to the price pressure. Imports Limited supply is still the primary concern for imports. Mandarin oranges are especially hard hit as contracts in China are not being fulfilled which puts pressure on products here in the US. with continued demand prices will continue to rise. Frozen Vegetables Weather issues have severely limited the flow of products like okra, broccoli, cauliflower, and asparagus into the US. The availability of acreage for planting of crops in the US is a major concern. Every indication is that with current demand, frozen vegetable pricing will continue to climb. Market Report Produce California Lettuce & Mixed Vegetables Iceberg Lettuce: Growing conditions have improved, however the damage has been done to the iceberg crop, with no rebound in production volume expected through the end of the desert harvest season in late March. Prices will continue at extreme levels and quality will be poor, with heavy damage from epidermal blistering and peeling. Processed Salad: Salad processors are in an extreme deficit supply situation, unable to load trucks in a timely manner, and filling orders only at the 50 percent level. Force Majeure contract price increases continue to escalate. Romaine: The same scenario as exists with iceberg…blistering and peeling, small heads from which many damage leaves have been removed, and the resulting lightweight cartons. Low yields will continue. Prices extreme, quality poor. Romaine Hearts: Epidermal peeling is also an issue, although to a lesser degree compared to commodity romaine. An occasional misshapen head is present in the pack. Quality issues will continue through March. Prices extreme, quality fair. Green Leaf: Freeze damage present, although not to the extent that iceberg and romaine have been affected. Prices high, quality fair. Broccoli (bunched): The market is trending higher as we near the transition period for the harvest moving from the desert northward to Central California…beginning in mid-March. Prices high, quality good. Pin rot and water damage present in broccoli from Central California. Broccoli (crowns): Priced at a substantial premium compared to bunched broccoli. Prices high, quality good. Cauliflower: The market advanced again this week, with production levels down by 10 percent compared to February 2010. Prices high, quality good. Celery: The market firmed this week, with buyers stepping in at lower price levels. Quality is an issue, with blistering and peeling present in desert celery and pith in Oxnard. Prices high, quality fair. Carrots: Large sized carrots (jumbo, table) continue to be in extremely limited supply due to low yields during the harvest transition from the Southern San Joaquin Valley to the Imperial Valley. This shortage includes carrot sticks and carrot chunks (2 inch, 4 inch). No relief is expected until April. Shippers are unable to fill orders in full. Prices extreme, quality good. Artichokes: The cold winter has slowed plant growth; the size profile is heavy to the smaller sizes (36, 48, large loose)…these sizes offer the best value. Most samples are now frost-free. Prices moderate, quality good. Plentiful supplies on all sizes will become available by April. Asparagus: Prices remain high for late season production in Northern Mexico. Quality good. New crop harvesting in Central California has been set back by recent cold, wet growing conditions. Parsley (curly): Adequate availability, prices moderate, quality good. Parsley (Italian): Adequate availability, prices moderate, quality good. Spinach (bunched): Production beginning to recover…prices high, quality good. Kale (green): Good availability. Prices moderate, quality good. Kale (flowering): Steady availability for growers in the desert districts. Cilantro: Increasing supplies. Prices moderate, quality good. Green Onions: The market is gradually easing with improved weather conditions in Mexico, however planted acreage is below average. A meaningful increase in production is not expected until late March. Prices high, quality good. Leeks: Availability is adequate, prices high, quality good. Green Cabbage: Tight availability, prices high, quality good. Red Cabbage: Adequate availability, prices moderate, quality good. Bok Choy: Adequate supplies, prices high. Napa: Light supplies, prices high. Snow peas: Good availability…prices moderate, quality good. Garlic: Tight supplies, high prices…Reduced imports and poor quality from China. No relief until late summer. Spring Mix: Spring mix availability is gradually improving…growers have been able to re-introduce various red components into the mix. Prices high, quality good. Spinach (baby): Better availability, however occasional allocation still in effect, depending on the shipper. Arugula: Increasing production, adequate availability. Mache: Unavailable…quality poor. Berries Strawberries: Tight availability in the West…the harvest in Central Mexico is winding down and Oxnard continues with modest production volume. Prices high, quality fair. Plentiful availability for late season production in Florida. Raspberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blackberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blueberries: Late season harvest volume in Chile is decreasing…finishing by mid-April. New crop blueberries in Georgia and Florida will begin at that time. Still moderate supplies coming from Mexico. Prices high, quality good. California-Arizona Citrus Navel Oranges: Continued plentiful availability for California Navel oranges…no effects from cold weather or rain thus far. Prices low, quality excellent. Lemons: We are near the end of the season for desert lemons…the primary shipping district is now the San Joaquin Valley, with storage crop inventories for Ventura County growers being replenished for the summer shipping season. Good availability on all sizes, with best values being offered on the large sizes (75, 95, 115). Prices moderate, quality excellent. Limes (Persian): The market for large sizes is slowly easing, with much better availability and favorable prices for the small sizes (230, 250). Growers harvesting limes as early as possible in the growth cycle to take full advantage of current high market. Harvest area transition in Mexico to occur in late March. Prices high-to-extreme, quality good. Grapefruit: Good availability on Desert Rio Red variety in California & Arizona and Texas Rio Star in Texas. Prices low-to-moderate, quality excellent. Cara Cara Oranges: Now in peak season production. Moro Oranges: Production winding down…size profile heavy to 113’s & smaller. Mandarins: Good availability for medium and large sizes (24’s-36’s). Pummelos: Nearing the end of the season…best value on smaller sizes (14-18). Prices moderate, quality good. Minneola Tangelos: Season finished for desert growers…now shipping from Central & Southern California. Prices moderate, quality good. Pineapple: Production is beginning to increase in Costa Rica, Guatemala, Honduras and Panama…good availability is in the forecast for Easter. Mexican pineapples are also available. Melons Cantaloupes: Steady availability, market firm…prices high, quality excellent. Honeydews: Tight availability from Central America…Mexican harvesting getting underway…not enough volume to influence the market. Prices high, quality excellent. Watermelons: Increasing production from growers in the Guadalajara region in Southern Mexico. Prices moderate, quality excellent…both seedless and seeded varieties. Washington Apples and Pears Red Delicious: Good demand; market well supported by exports. Yields very good considering difficult growing conditions during spring and summer 2010. Markets are firm most sizes, expected to remain steady going into spring. Golden Delicious: Good availability, prices moderate. Bosc Pears: Good availability, prices moderate-to-high. D’Anjou Pears: Good availability, prices moderate-to-high. Bartlett Pears: New crop from Chile now available, prices moderate-to-high. Grapes & Soft Fruit Red Seedless Grapes: Supplies will be tight through late March with the transition from Flame seedless variety to Crimson. Prices moderate, quality good. Green Seedless Grapes: Availability increasing for Thompson seedless. Prices moderate, quality good. Kiwi (California): The first shipment of Chilean kiwi is now on the water, arriving in late March. California kiwi will continue to be available in the interim…transition will be smooth. Prices moderate, quality good. Avocados Hass: Calavo reports that the Mexican harvest is 2/3 complete, and the remaining 1/3 must last through July. The California Hass crop is 50 percent smaller compared to 2010. Chilean season is finished. The market continues to push higher on all sizes, with the greatest increases on the 48’s. Prices extreme, quality good. Eastern & Western Vegetables Green Bell Peppers: Limited availability and extreme prices on jumbo and extra large. Best availability on choice grade. Quality fair. Red Bell Peppers: Demand increasing, market firm. Prices moderate, quality good. Cucumbers: Tight supplies, production in Mexico winding down for the remainder of March. Prices high, quality fair. Green Beans: Good availability from growers in Florida and Central America. Prices moderate. Tight availability in Nogales. Prices extreme, quality poor. Eggplant: unavailable in Nogales and Florida. Product availability returning in April. Squash: Zucchini: Tight availability in Florida and Nogales. Prices extreme. Quality fair. Yellow: Plentiful supplies in Florida, adequate in Nogales. Florida: prices low, quality good. Nogales: prices high, quality fair. Tomatoes Round: The effects are now being manifested from the freeze that occurred in Mexico during early February…acreage has been lost and production is on the decline…causing upward pressure in the market. Storage inventories are depleted…the upward price trend will continue. Prices high, quality fair. Roma: Same as round tomatoes. Cherry: Same as round tomatoes. Grape: Same as round tomatoes. Potatoes (Idaho) Russets: Availability has tightened considerably for the US #2 Idaho Russets, with a sharp advance in the market this week. Prices are also on the rise for carton packed, small sized potatoes (80, 90, 100). We can expect to see continued subtle to sharp advances in prices on a weekly basis going forward. Prices high, quality good. Onions (Northwest) Yellow: Onions are in oversupply…Mexican growers in full production, supplying the southwestern and southeastern U.S. Packers of storage crop onions in the Northwest will continue to ship through the month of April. Prices low, quality good. Red: Red onions are in oversupply. Quality good, market low. White: Same as yellow onions. Soybean Futures The soybean complex has traded all over this week. The futures price started higher in response to ideas that U.S. soybeans out of the Pacific Northwest are once again competitive with Brazilian origin for the next few weeks. Surging soybean oil also helps as the idea of manufacturing bio-diesel will become profitable due to surging gasoline prices. The complex sold off sharply in response to the break in corn but managed to recover most of those losses by day's end with the exception of soybean meal. Basis levels for soybeans are mostly steady with the Gulf appearing a bit easier. March beans gain on the spread due to the lack of deliveries against the March contract. Forward spreads within the old crop do little, maybe a bit easier. Spreads within new crop firmed a bit, in part to the effort of new crop beans trying to secure acres for the upcoming season. If the acres are not contracted, beans within the U.S. will continue to tighten making the recent tight years pale in comparison. The technical look for soybeans and soybean meal is a bit bothersome. Soybeans and soybean meal match last Friday's highs and fail to follow through. The price action is suggesting an interim double top of the up flagging efforts from last week's lows. Business is expected to fade in the coming weeks/months as the South American new crop comes on line. This holds true for the soybean oil market as well. Soybean Oil The continued unrest will force drastic market swings such as we have seen in the last two weeks. Export sales continue to be noticeably higher which also contributes to the strong market. Outside markets continue to drive the upward trend seen in the soybean oil market. Look for this market to remain strong with occasional, short lived, small drops. Discuss forward strategy with your oil partner. Mideast/North African Tension, Energies Continued civil unrest in Libya and growing concern over oil supply disruptions sent energies higher. Libyan sources contend that oil production and shipments are down 50%, but industry sources suggest that production is down far more. It is thought that the ships that have been loaded in the last several days have been loaded with inventory accumulated prior to the civil unrest and that new oil is not being received from the oil fields. The Department of Energy released its weekly numbers on Wednesday. Crude Oil supplies were down 400,000 barrels for the week, up 4.7 million from a year ago. Total gasoline stocks dropped by 3.6 million barrels, up 2.8 million barrels from a year ago. Gasoline and oil stocks have been increasing mostly every week and gasoline prices at the pump are still going higher. We continue to believe that energy prices will continue to remain strong and find support on dips as long as civil unrest remains in the Middle East and North Africa. This unrest will have a direct affect on commodities traded daily. As long as this country is in disarray, expect commodities to remain strong.
Seafood News from the Gulf- The area of Federal Waters closed to fishing in the Gulf remains unchanged since February 1st. The current area closed to fishing remains at 1041 square miles. Gulf Shrimp- Market is steady to firm. Black Tiger Shrimp- Market is mixed. Several sizes are listed as firming with the exception of 16-20 and 21-25 Headless Shell On as these are listed as weaker. Inventories are listed as tighter while demand remains good. White Shrimp- Market is firming. 31-35 and smaller are listed as firming because of tighter inventories. Larger sizes are listed as steady. Salmon- Market is steady to firm. Replacement costs are noted as higher. King Crab- Market is firm. Snow Crab- Market is steady but firm. Inventories remain very light with a good demand. Warm Water Lobster Tails- Market is steady. Demand is listed as low. American Lobster Tails- Market is steady. Smaller sizes are reported to have limited supplies. Cod- Market is firm. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firming. Demand is listed as good. Pollock- Market is steady. Inventories are reported as good for a light to moderate demand. Whiting- Market is steady. Even though supplies are reported as very light, demand remains low and are keeping inventories in pace with demand. Domestic Catfish- Market is firm. Inventories remain a concern. Scallops- Market is steady. Inventories remain light with a demand listed as down. Tilapia- Market is steady but firm. Demand is listed as good with replacement costs listed as higher. Dairy Why are dairy prices continuing to rise? Weather issues- Drought in New Zealand has reduced their milk production. Heavy rains in Australia reduced their milk production. Weather issues in South America having impact on Dairy Market. Strong Demand from both Russia and China for dairy products. Low global inventories on dairy products. Higher international cheese prices. Increased global grain prices. Cheese-Market is firm. Pricing continued to climb for both the CME Block and the Barrel markets this week. Both markets are trending well above same time last year and the gap has continued to increase. Reports show that Mozzarella demand has remained strong recently. Butter- Market is firming. Pricing has continued to increase this week as Wednesday saw a sharp increase in market pricing. Pricing remains well above same time last year. Eggs Shell Eggs- Market is soft. Retail demand is listed as poor to fair. Reports show that more advertising is set for next week. Inventories are listed as long. Inventories are up 12% from last week. Egg Products- Market is steady. Beef Market is firm. Live cattle pricing continues to climb. Total beef production for last week was 1.5% lower than previous week. Packers have announced reduced hours for the near future which may lead to even tighter inventories. March is expected to be a tight month on availability. Grilling season is just around the corner and demand should seasonally increase as we get closer to summer. Futures are still showing firmer pricing as the year progresses. Chucks- Market is steady but firm. Rounds- Market is steady but firm. Earlier in the week saw pricing firm across the board while later in the week pricing remained more steady. Loins-Market is steady but firm. As with the rounds pricing advanced earlier this week and held its ground thru the end of the week. Upcoming grilling season is expected to put additional pressure on demand and pricing. Ribs- Market is firming. This market is expected to firm in pricing over the next few weeks. Grinds-Market is softening. Short term pricing has shown signs of weakening. Long term expectations show there could be some strength come back into pricing as we get closer to grilling season. Pork Market is steady. Total pork production was up .9% last week versus the week before and steady with same time last year. Live prices continue to trend higher than same time last year with futures showing pricing higher as we near summer. Exports have eased after the strong demand the past several weeks. Bellies- Market is firm. Report show pricing continuing to remain above last year as we head into the summer months. Hams- Market is steady but firm. Exports have eased but Easter demand is holding pricing in line. Demand is listed as average for this time of the year. Butts- Market has softened. Pricing has softened thru the week. Export demand is down and reports show that pricing could soften over the next few weeks if that demand does not pick back up. Ribs- Market is steady. Loins- Market is firm. Reports show heavy promoting over the next few weeks which should help increase demand. Chicken The markets remain on solid ground. With higher priced proteins, chicken has become an alternative source. High corn prices and transportation costs have also played a part in the market levels we’ve seen this week. WOGs and whole birds are short of full needs, and remain harder to secure. Markets this week have seen daily increases as these items have become tighter. This trend could continue into next week. Whole breast availability is limited and trade at current levels. Boneless and tenders also trade at higher levels as these items are limited in supply. Dark meat trades at steady levels to higher. Leg quarters, legs and thighs are adequate for current needs and are moving at current market levels. Wings are starting to see some interest as market levels dropped the last few weeks. This week though this market has remained steady. Turkey The turkey markets are described as better than seasonal as inquires are better than the norm for the first of March. Overall most items are trading at full market or better. Whole birds have traded at full market or better for end of March into April, but limited or no availability for current ship appears to be available. Fresh and frozen breast meat, thigh meat, drums and wings appear to be the most sought after items on the list. The turkey complex is sitting in a current position that leads most to believe it will remain solid through the spring.
Canned fruits and vegetables As the year progresses things are tightening and beets are an item to watch in canned goods. At this point restrictions have not been placed but movement is being closely monitored and restrictions could come at any time. For canned goods in general fairly well balanced inventories and the coming inflation concerns canners are not offering the kind of deals seen this time last year. Pasta Wheat futures and finished goods demand are the primary drivers of pasta prices. Increases in semolina prices to manufactures are continuing to pressure suppliers to increase prices on finished pasta goods. Frozen Vegetables The talk this week in frozen has been almost in unison across suppliers. Inflation, inflation, inflation. But there is a catch that makes it even worse. For about a year and half pricing for frozen vegetables has been deflated. Suppliers are expecting drastic price increases with the new pack that would bring pricing not just to pre deflation levels but to even higher levels due to increases in nearly all cost inputs. Market Report
Inflation for 2011 Expect 5-7 % inflation over the next 12-18 months for Foodservice as well as Retail. Many global factors driving costs: Weak US Dollar Rising Energy Prices Increased Support for Ethanol – driving corn and feed prices up. High prices offered for Corn , reducing the planting acreage for other products. Strong Global GDP (led by China) Shortfall in World Wheat Production Commodity Speculation Seafood Gulf Shrimp- Market is steady. Inventory on larger sizes remains tight and pricing on the larger sizes is listed as firm. Other sizes are listed as steady but pricing varies from supplier to supplier. Black Tiger Shrimp- Market is steady. White Shrimp- Market is firming. Larger count shrimp are listed as steady. 31-35 and smaller HL/SO are listed as firm with smaller sizes showing additional firming in pricing. Mexican Shrimp- Market is steady. U15 and larger inventories are in tighter supply and pricing is firmer. Warm Water Lobster Tails- Market is steady. North American Lobster Tails- Market is steady to softening. Mid-sized products are listed as weak with pricing varying between suppliers. Small sizes are steady but inventories are tight. Salmon- Market is firming. Inventories are listed as light for the entire category. Demand is reported as good. King Crab- Market is firm. Inventories remain tight and replacement product is listed as very limited. Snow Crab- Market is firm. Inventories remain tight with 5-8’s being reported as being very tight. Alaskan Opilio Crab- Market is firm. Supplies are tight for a good demand. Dungeness Crab- Market is firm. Inventories remain light for an active demand. Pangasius- Market is firming. Reports show that replacement costs continue to rise. Demand is listed as good. Domestic Catfish- Market is firm. Reports show that availability is a concern as demand is outpacing supplies. Tilapia- Market is steady but firm. Scallops- Market is steady but firm. Inventories remain light. Cod- Market is firming. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firmer. Demand is listed as good. Pollock- Market is steady. Whiting- Market is steady. Inventories remain light but are keeping pace with a light demand. Dairy Cheese- Market is firming. The CME markets continued to firm again this week. Pricing is now at its highest point for the year thus far. Demand remains good. Reports show that milk supplies are fairly tight worldwide and are putting additional pressure on the cheese markets. Butter- Market is softening. Butter production is up and is helping to slowly build inventories. Inventories last week increased by another 1.6 million lbs. Total inventories still remain less than half the amount of same time last year(20.4 versus 56.7 million lbs). Eggs Shell Eggs- Market is soft. Total egg inventories increased by another 4% from last week. Retail demand is listed as fair. Foodservice demand is listed as good. Jumbos and Large are listed in good supply. Egg Products- Market is steady. Beef Market is firmer. Live prices pushed higher last week and are now at levels not seen since 2003. Higher grain pricing remains a concern for the protein categories as feed costs are expected to increase. Overall beef production was reported as up just over 2% from previous week. Demand is listed as good. Grinds- Market is steady to softer. Demand remains good and product remains in tight supply. Pricing still remains well above same time last year. Ribs- Market is steady. Loins- Market is steady to firmer. Increased demand is putting additional pressure on the category. Chucks- Market is steady to firmer. Continued increased demand and additional exports continue to put pressure on pricing. Rounds- Market is steady to firmer. Demand is listed as good. Chucks- Market is steady to firmer. Pork Market is firm. Pork production was down last week. Total production was down about 3.3% from previous week. Futures continue to show firm pricing for the category as the year progresses. Bellies- Market is steady but firm. Inventories remain tight with a good demand. Forecasts shows pricing firming over the next few weeks. Reports show that the reason the current market has held steady is that availability is so tight that very little trading is being reported. Hams- Market is firm. Demand is reported as good. Exports continue to be strong and combined with reduced harvests are helping push pricing higher. Loins- Market is firm. Demand is listed as good. Butts- Market is firm. Exports remain very strong. Ribs- Market is steady. Demand is listed as softer. Wheat Wheat futures prices traded lower this week, but basis premium levels are firm to higher, leaving flour prices mostly flat. China’s winter wheat crop received some rain, and their government called supplies adequate; however reliable information about Chinese agricultural production can be difficult to obtain. Forecasts for important wheat growing regions of China and the U.S. are calling for dryer weather through the end of this month. It was thought the U.S. had lost export business to lower-priced competitors, but with the drop in futures prices this trend could be quickly reversed.
Soybean Oil This market has been a rollercoaster this week. Dropping on Thursday after rebounding from losses earlier in the week. The Libyan unrest continues to have an effect on the soybean oil market, as well as, other energy markets. US crude is up more than $4.00 in early trading. Gains in crude oil would normally be supportive for the oilseed markets, but the global political uncertainty taking crude oil higher is also making investors more cautious, causing them to exit some of the riskier agricultural markets. The overall up and down turn of the market this week makes it extremely difficult to book/buy with any certainty. Monitor trends closely and buy to meet immediate needs. Chicken Demand has been mostly basic with the majority of inquires seasonal. In general most inventory levels are in balance with current demand, for the exception of a few items. WOGs and whole birds are one of those items where inventory has become tight, with inquiries holding at market levels. Boneless and tenders are well supported, with tenders trading at full market. Whole breast are steady. Dark meat items such as legs, leg quarters, and thighs are tight with markets levels moving up this week. Wings continue to be weak, with this week’s market reflecting suppliers wanting to clear out some inventory. Turkey Markets are pretty active, more so then what we typically see this time of year. Undertone is strong on most items. Whole birds have seen a slight increase in markets this week as product becomes harder to secure. Raw material demand is active as is both fresh and frozen MST. Wings appear to be trending higher, as tom and hen two joints rate a full steady undertone with supplies less than adequate. Fresh breast meat has been harder to secure with potential of possible market increases. This may also be true for tenders as well. Thigh meat and drums Is limited in current availability.
Dry Beans: The dry market overall continues to see firm pricing. As with other crops, the availability of acreage for planting is affecting dry bean pricing. Pinto and black beans are both expected to continue to firm. Greater than normal export opportunities are present for black beans that are contributing to the price pressure. Imports Limited supply is still the primary concern for imports. Mandarin oranges are especially hard hit as contracts in China are not being fulfilled which puts pressure on products here in the US. with continued demand prices will continue to rise. Frozen Vegetables Weather issues have severely limited the flow of products like okra, broccoli, cauliflower, and asparagus into the US. The availability of acreage for planting of crops in the US is a major concern. Every indication is that with current demand, frozen vegetable pricing will continue to climb. Market Report Produce California Lettuce & Mixed Vegetables Iceberg Lettuce: Growing conditions have improved, however the damage has been done to the iceberg crop, with no rebound in production volume expected through the end of the desert harvest season in late March. Prices will continue at extreme levels and quality will be poor, with heavy damage from epidermal blistering and peeling. Processed Salad: Salad processors are in an extreme deficit supply situation, unable to load trucks in a timely manner, and filling orders only at the 50 percent level. Force Majeure contract price increases continue to escalate. Romaine: The same scenario as exists with iceberg…blistering and peeling, small heads from which many damage leaves have been removed, and the resulting lightweight cartons. Low yields will continue. Prices extreme, quality poor. Romaine Hearts: Epidermal peeling is also an issue, although to a lesser degree compared to commodity romaine. An occasional misshapen head is present in the pack. Quality issues will continue through March. Prices extreme, quality fair. Green Leaf: Freeze damage present, although not to the extent that iceberg and romaine have been affected. Prices high, quality fair. Broccoli (bunched): The market is trending higher as we near the transition period for the harvest moving from the desert northward to Central California…beginning in mid-March. Prices high, quality good. Pin rot and water damage present in broccoli from Central California. Broccoli (crowns): Priced at a substantial premium compared to bunched broccoli. Prices high, quality good. Cauliflower: The market advanced again this week, with production levels down by 10 percent compared to February 2010. Prices high, quality good. Celery: The market firmed this week, with buyers stepping in at lower price levels. Quality is an issue, with blistering and peeling present in desert celery and pith in Oxnard. Prices high, quality fair. Carrots: Large sized carrots (jumbo, table) continue to be in extremely limited supply due to low yields during the harvest transition from the Southern San Joaquin Valley to the Imperial Valley. This shortage includes carrot sticks and carrot chunks (2 inch, 4 inch). No relief is expected until April. Shippers are unable to fill orders in full. Prices extreme, quality good. Artichokes: The cold winter has slowed plant growth; the size profile is heavy to the smaller sizes (36, 48, large loose)…these sizes offer the best value. Most samples are now frost-free. Prices moderate, quality good. Plentiful supplies on all sizes will become available by April. Asparagus: Prices remain high for late season production in Northern Mexico. Quality good. New crop harvesting in Central California has been set back by recent cold, wet growing conditions. Parsley (curly): Adequate availability, prices moderate, quality good. Parsley (Italian): Adequate availability, prices moderate, quality good. Spinach (bunched): Production beginning to recover…prices high, quality good. Kale (green): Good availability. Prices moderate, quality good. Kale (flowering): Steady availability for growers in the desert districts. Cilantro: Increasing supplies. Prices moderate, quality good. Green Onions: The market is gradually easing with improved weather conditions in Mexico, however planted acreage is below average. A meaningful increase in production is not expected until late March. Prices high, quality good. Leeks: Availability is adequate, prices high, quality good. Green Cabbage: Tight availability, prices high, quality good. Red Cabbage: Adequate availability, prices moderate, quality good. Bok Choy: Adequate supplies, prices high. Napa: Light supplies, prices high. Snow peas: Good availability…prices moderate, quality good. Garlic: Tight supplies, high prices…Reduced imports and poor quality from China. No relief until late summer. Spring Mix: Spring mix availability is gradually improving…growers have been able to re-introduce various red components into the mix. Prices high, quality good. Spinach (baby): Better availability, however occasional allocation still in effect, depending on the shipper. Arugula: Increasing production, adequate availability. Mache: Unavailable…quality poor. Berries Strawberries: Tight availability in the West…the harvest in Central Mexico is winding down and Oxnard continues with modest production volume. Prices high, quality fair. Plentiful availability for late season production in Florida. Raspberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blackberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blueberries: Late season harvest volume in Chile is decreasing…finishing by mid-April. New crop blueberries in Georgia and Florida will begin at that time. Still moderate supplies coming from Mexico. Prices high, quality good. California-Arizona Citrus Navel Oranges: Continued plentiful availability for California Navel oranges…no effects from cold weather or rain thus far. Prices low, quality excellent. Lemons: We are near the end of the season for desert lemons…the primary shipping district is now the San Joaquin Valley, with storage crop inventories for Ventura County growers being replenished for the summer shipping season. Good availability on all sizes, with best values being offered on the large sizes (75, 95, 115). Prices moderate, quality excellent. Limes (Persian): The market for large sizes is slowly easing, with much better availability and favorable prices for the small sizes (230, 250). Growers harvesting limes as early as possible in the growth cycle to take full advantage of current high market. Harvest area transition in Mexico to occur in late March. Prices high-to-extreme, quality good. Grapefruit: Good availability on Desert Rio Red variety in California & Arizona and Texas Rio Star in Texas. Prices low-to-moderate, quality excellent. Cara Cara Oranges: Now in peak season production. Moro Oranges: Production winding down…size profile heavy to 113’s & smaller. Mandarins: Good availability for medium and large sizes (24’s-36’s). Pummelos: Nearing the end of the season…best value on smaller sizes (14-18). Prices moderate, quality good. Minneola Tangelos: Season finished for desert growers…now shipping from Central & Southern California. Prices moderate, quality good. Pineapple: Production is beginning to increase in Costa Rica, Guatemala, Honduras and Panama…good availability is in the forecast for Easter. Mexican pineapples are also available. Melons Cantaloupes: Steady availability, market firm…prices high, quality excellent. Honeydews: Tight availability from Central America…Mexican harvesting getting underway…not enough volume to influence the market. Prices high, quality excellent. Watermelons: Increasing production from growers in the Guadalajara region in Southern Mexico. Prices moderate, quality excellent…both seedless and seeded varieties. Washington Apples and Pears Red Delicious: Good demand; market well supported by exports. Yields very good considering difficult growing conditions during spring and summer 2010. Markets are firm most sizes, expected to remain steady going into spring. Golden Delicious: Good availability, prices moderate. Bosc Pears: Good availability, prices moderate-to-high. D’Anjou Pears: Good availability, prices moderate-to-high. Bartlett Pears: New crop from Chile now available, prices moderate-to-high. Grapes & Soft Fruit Red Seedless Grapes: Supplies will be tight through late March with the transition from Flame seedless variety to Crimson. Prices moderate, quality good. Green Seedless Grapes: Availability increasing for Thompson seedless. Prices moderate, quality good. Kiwi (California): The first shipment of Chilean kiwi is now on the water, arriving in late March. California kiwi will continue to be available in the interim…transition will be smooth. Prices moderate, quality good. Avocados Hass: Calavo reports that the Mexican harvest is 2/3 complete, and the remaining 1/3 must last through July. The California Hass crop is 50 percent smaller compared to 2010. Chilean season is finished. The market continues to push higher on all sizes, with the greatest increases on the 48’s. Prices extreme, quality good. Eastern & Western Vegetables Green Bell Peppers: Limited availability and extreme prices on jumbo and extra large. Best availability on choice grade. Quality fair. Red Bell Peppers: Demand increasing, market firm. Prices moderate, quality good. Cucumbers: Tight supplies, production in Mexico winding down for the remainder of March. Prices high, quality fair. Green Beans: Good availability from growers in Florida and Central America. Prices moderate. Tight availability in Nogales. Prices extreme, quality poor. Eggplant: unavailable in Nogales and Florida. Product availability returning in April. Squash: Zucchini: Tight availability in Florida and Nogales. Prices extreme. Quality fair. Yellow: Plentiful supplies in Florida, adequate in Nogales. Florida: prices low, quality good. Nogales: prices high, quality fair. Tomatoes Round: The effects are now being manifested from the freeze that occurred in Mexico during early February…acreage has been lost and production is on the decline…causing upward pressure in the market. Storage inventories are depleted…the upward price trend will continue. Prices high, quality fair. Roma: Same as round tomatoes. Cherry: Same as round tomatoes. Grape: Same as round tomatoes. Potatoes (Idaho) Russets: Availability has tightened considerably for the US #2 Idaho Russets, with a sharp advance in the market this week. Prices are also on the rise for carton packed, small sized potatoes (80, 90, 100). We can expect to see continued subtle to sharp advances in prices on a weekly basis going forward. Prices high, quality good. Onions (Northwest) Yellow: Onions are in oversupply…Mexican growers in full production, supplying the southwestern and southeastern U.S. Packers of storage crop onions in the Northwest will continue to ship through the month of April. Prices low, quality good. Red: Red onions are in oversupply. Quality good, market low. White: Same as yellow onions. Soybean Futures The soybean complex has traded all over this week. The futures price started higher in response to ideas that U.S. soybeans out of the Pacific Northwest are once again competitive with Brazilian origin for the next few weeks. Surging soybean oil also helps as the idea of manufacturing bio-diesel will become profitable due to surging gasoline prices. The complex sold off sharply in response to the break in corn but managed to recover most of those losses by day's end with the exception of soybean meal. Basis levels for soybeans are mostly steady with the Gulf appearing a bit easier. March beans gain on the spread due to the lack of deliveries against the March contract. Forward spreads within the old crop do little, maybe a bit easier. Spreads within new crop firmed a bit, in part to the effort of new crop beans trying to secure acres for the upcoming season. If the acres are not contracted, beans within the U.S. will continue to tighten making the recent tight years pale in comparison. The technical look for soybeans and soybean meal is a bit bothersome. Soybeans and soybean meal match last Friday's highs and fail to follow through. The price action is suggesting an interim double top of the up flagging efforts from last week's lows. Business is expected to fade in the coming weeks/months as the South American new crop comes on line. This holds true for the soybean oil market as well. Soybean Oil The continued unrest will force drastic market swings such as we have seen in the last two weeks. Export sales continue to be noticeably higher which also contributes to the strong market. Outside markets continue to drive the upward trend seen in the soybean oil market. Look for this market to remain strong with occasional, short lived, small drops. Discuss forward strategy with your oil partner. Mideast/North African Tension, Energies Continued civil unrest in Libya and growing concern over oil supply disruptions sent energies higher. Libyan sources contend that oil production and shipments are down 50%, but industry sources suggest that production is down far more. It is thought that the ships that have been loaded in the last several days have been loaded with inventory accumulated prior to the civil unrest and that new oil is not being received from the oil fields. The Department of Energy released its weekly numbers on Wednesday. Crude Oil supplies were down 400,000 barrels for the week, up 4.7 million from a year ago. Total gasoline stocks dropped by 3.6 million barrels, up 2.8 million barrels from a year ago. Gasoline and oil stocks have been increasing mostly every week and gasoline prices at the pump are still going higher. We continue to believe that energy prices will continue to remain strong and find support on dips as long as civil unrest remains in the Middle East and North Africa. This unrest will have a direct affect on commodities traded daily. As long as this country is in disarray, expect commodities to remain strong.
Seafood News from the Gulf- The area of Federal Waters closed to fishing in the Gulf remains unchanged since February 1st. The current area closed to fishing remains at 1041 square miles. Gulf Shrimp- Market is steady to firm. Black Tiger Shrimp- Market is mixed. Several sizes are listed as firming with the exception of 16-20 and 21-25 Headless Shell On as these are listed as weaker. Inventories are listed as tighter while demand remains good. White Shrimp- Market is firming. 31-35 and smaller are listed as firming because of tighter inventories. Larger sizes are listed as steady. Salmon- Market is steady to firm. Replacement costs are noted as higher. King Crab- Market is firm. Snow Crab- Market is steady but firm. Inventories remain very light with a good demand. Warm Water Lobster Tails- Market is steady. Demand is listed as low. American Lobster Tails- Market is steady. Smaller sizes are reported to have limited supplies. Cod- Market is firm. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firming. Demand is listed as good. Pollock- Market is steady. Inventories are reported as good for a light to moderate demand. Whiting- Market is steady. Even though supplies are reported as very light, demand remains low and are keeping inventories in pace with demand. Domestic Catfish- Market is firm. Inventories remain a concern. Scallops- Market is steady. Inventories remain light with a demand listed as down. Tilapia- Market is steady but firm. Demand is listed as good with replacement costs listed as higher. Dairy Why are dairy prices continuing to rise? Weather issues- Drought in New Zealand has reduced their milk production. Heavy rains in Australia reduced their milk production. Weather issues in South America having impact on Dairy Market. Strong Demand from both Russia and China for dairy products. Low global inventories on dairy products. Higher international cheese prices. Increased global grain prices. Cheese-Market is firm. Pricing continued to climb for both the CME Block and the Barrel markets this week. Both markets are trending well above same time last year and the gap has continued to increase. Reports show that Mozzarella demand has remained strong recently. Butter- Market is firming. Pricing has continued to increase this week as Wednesday saw a sharp increase in market pricing. Pricing remains well above same time last year. Eggs Shell Eggs- Market is soft. Retail demand is listed as poor to fair. Reports show that more advertising is set for next week. Inventories are listed as long. Inventories are up 12% from last week. Egg Products- Market is steady. Beef Market is firm. Live cattle pricing continues to climb. Total beef production for last week was 1.5% lower than previous week. Packers have announced reduced hours for the near future which may lead to even tighter inventories. March is expected to be a tight month on availability. Grilling season is just around the corner and demand should seasonally increase as we get closer to summer. Futures are still showing firmer pricing as the year progresses. Chucks- Market is steady but firm. Rounds- Market is steady but firm. Earlier in the week saw pricing firm across the board while later in the week pricing remained more steady. Loins-Market is steady but firm. As with the rounds pricing advanced earlier this week and held its ground thru the end of the week. Upcoming grilling season is expected to put additional pressure on demand and pricing. Ribs- Market is firming. This market is expected to firm in pricing over the next few weeks. Grinds-Market is softening. Short term pricing has shown signs of weakening. Long term expectations show there could be some strength come back into pricing as we get closer to grilling season. Pork Market is steady. Total pork production was up .9% last week versus the week before and steady with same time last year. Live prices continue to trend higher than same time last year with futures showing pricing higher as we near summer. Exports have eased after the strong demand the past several weeks. Bellies- Market is firm. Report show pricing continuing to remain above last year as we head into the summer months. Hams- Market is steady but firm. Exports have eased but Easter demand is holding pricing in line. Demand is listed as average for this time of the year. Butts- Market has softened. Pricing has softened thru the week. Export demand is down and reports show that pricing could soften over the next few weeks if that demand does not pick back up. Ribs- Market is steady. Loins- Market is firm. Reports show heavy promoting over the next few weeks which should help increase demand. Chicken The markets remain on solid ground. With higher priced proteins, chicken has become an alternative source. High corn prices and transportation costs have also played a part in the market levels we’ve seen this week. WOGs and whole birds are short of full needs, and remain harder to secure. Markets this week have seen daily increases as these items have become tighter. This trend could continue into next week. Whole breast availability is limited and trade at current levels. Boneless and tenders also trade at higher levels as these items are limited in supply. Dark meat trades at steady levels to higher. Leg quarters, legs and thighs are adequate for current needs and are moving at current market levels. Wings are starting to see some interest as market levels dropped the last few weeks. This week though this market has remained steady. Turkey The turkey markets are described as better than seasonal as inquires are better than the norm for the first of March. Overall most items are trading at full market or better. Whole birds have traded at full market or better for end of March into April, but limited or no availability for current ship appears to be available. Fresh and frozen breast meat, thigh meat, drums and wings appear to be the most sought after items on the list. The turkey complex is sitting in a current position that leads most to believe it will remain solid through the spring.
Canned fruits and vegetables As the year progresses things are tightening and beets are an item to watch in canned goods. At this point restrictions have not been placed but movement is being closely monitored and restrictions could come at any time. For canned goods in general fairly well balanced inventories and the coming inflation concerns canners are not offering the kind of deals seen this time last year. Pasta Wheat futures and finished goods demand are the primary drivers of pasta prices. Increases in semolina prices to manufactures are continuing to pressure suppliers to increase prices on finished pasta goods. Frozen Vegetables The talk this week in frozen has been almost in unison across suppliers. Inflation, inflation, inflation. But there is a catch that makes it even worse. For about a year and half pricing for frozen vegetables has been deflated. Suppliers are expecting drastic price increases with the new pack that would bring pricing not just to pre deflation levels but to even higher levels due to increases in nearly all cost inputs. Market Report
Inflation for 2011 Expect 5-7 % inflation over the next 12-18 months for Foodservice as well as Retail. Many global factors driving costs: Weak US Dollar Rising Energy Prices Increased Support for Ethanol – driving corn and feed prices up. High prices offered for Corn , reducing the planting acreage for other products. Strong Global GDP (led by China) Shortfall in World Wheat Production Commodity Speculation Seafood Gulf Shrimp- Market is steady. Inventory on larger sizes remains tight and pricing on the larger sizes is listed as firm. Other sizes are listed as steady but pricing varies from supplier to supplier. Black Tiger Shrimp- Market is steady. White Shrimp- Market is firming. Larger count shrimp are listed as steady. 31-35 and smaller HL/SO are listed as firm with smaller sizes showing additional firming in pricing. Mexican Shrimp- Market is steady. U15 and larger inventories are in tighter supply and pricing is firmer. Warm Water Lobster Tails- Market is steady. North American Lobster Tails- Market is steady to softening. Mid-sized products are listed as weak with pricing varying between suppliers. Small sizes are steady but inventories are tight. Salmon- Market is firming. Inventories are listed as light for the entire category. Demand is reported as good. King Crab- Market is firm. Inventories remain tight and replacement product is listed as very limited. Snow Crab- Market is firm. Inventories remain tight with 5-8’s being reported as being very tight. Alaskan Opilio Crab- Market is firm. Supplies are tight for a good demand. Dungeness Crab- Market is firm. Inventories remain light for an active demand. Pangasius- Market is firming. Reports show that replacement costs continue to rise. Demand is listed as good. Domestic Catfish- Market is firm. Reports show that availability is a concern as demand is outpacing supplies. Tilapia- Market is steady but firm. Scallops- Market is steady but firm. Inventories remain light. Cod- Market is firming. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firmer. Demand is listed as good. Pollock- Market is steady. Whiting- Market is steady. Inventories remain light but are keeping pace with a light demand. Dairy Cheese- Market is firming. The CME markets continued to firm again this week. Pricing is now at its highest point for the year thus far. Demand remains good. Reports show that milk supplies are fairly tight worldwide and are putting additional pressure on the cheese markets. Butter- Market is softening. Butter production is up and is helping to slowly build inventories. Inventories last week increased by another 1.6 million lbs. Total inventories still remain less than half the amount of same time last year(20.4 versus 56.7 million lbs). Eggs Shell Eggs- Market is soft. Total egg inventories increased by another 4% from last week. Retail demand is listed as fair. Foodservice demand is listed as good. Jumbos and Large are listed in good supply. Egg Products- Market is steady. Beef Market is firmer. Live prices pushed higher last week and are now at levels not seen since 2003. Higher grain pricing remains a concern for the protein categories as feed costs are expected to increase. Overall beef production was reported as up just over 2% from previous week. Demand is listed as good. Grinds- Market is steady to softer. Demand remains good and product remains in tight supply. Pricing still remains well above same time last year. Ribs- Market is steady. Loins- Market is steady to firmer. Increased demand is putting additional pressure on the category. Chucks- Market is steady to firmer. Continued increased demand and additional exports continue to put pressure on pricing. Rounds- Market is steady to firmer. Demand is listed as good. Chucks- Market is steady to firmer. Pork Market is firm. Pork production was down last week. Total production was down about 3.3% from previous week. Futures continue to show firm pricing for the category as the year progresses. Bellies- Market is steady but firm. Inventories remain tight with a good demand. Forecasts shows pricing firming over the next few weeks. Reports show that the reason the current market has held steady is that availability is so tight that very little trading is being reported. Hams- Market is firm. Demand is reported as good. Exports continue to be strong and combined with reduced harvests are helping push pricing higher. Loins- Market is firm. Demand is listed as good. Butts- Market is firm. Exports remain very strong. Ribs- Market is steady. Demand is listed as softer. Wheat Wheat futures prices traded lower this week, but basis premium levels are firm to higher, leaving flour prices mostly flat. China’s winter wheat crop received some rain, and their government called supplies adequate; however reliable information about Chinese agricultural production can be difficult to obtain. Forecasts for important wheat growing regions of China and the U.S. are calling for dryer weather through the end of this month. It was thought the U.S. had lost export business to lower-priced competitors, but with the drop in futures prices this trend could be quickly reversed.
Soybean Oil This market has been a rollercoaster this week. Dropping on Thursday after rebounding from losses earlier in the week. The Libyan unrest continues to have an effect on the soybean oil market, as well as, other energy markets. US crude is up more than $4.00 in early trading. Gains in crude oil would normally be supportive for the oilseed markets, but the global political uncertainty taking crude oil higher is also making investors more cautious, causing them to exit some of the riskier agricultural markets. The overall up and down turn of the market this week makes it extremely difficult to book/buy with any certainty. Monitor trends closely and buy to meet immediate needs. Chicken Demand has been mostly basic with the majority of inquires seasonal. In general most inventory levels are in balance with current demand, for the exception of a few items. WOGs and whole birds are one of those items where inventory has become tight, with inquiries holding at market levels. Boneless and tenders are well supported, with tenders trading at full market. Whole breast are steady. Dark meat items such as legs, leg quarters, and thighs are tight with markets levels moving up this week. Wings continue to be weak, with this week’s market reflecting suppliers wanting to clear out some inventory. Turkey Markets are pretty active, more so then what we typically see this time of year. Undertone is strong on most items. Whole birds have seen a slight increase in markets this week as product becomes harder to secure. Raw material demand is active as is both fresh and frozen MST. Wings appear to be trending higher, as tom and hen two joints rate a full steady undertone with supplies less than adequate. Fresh breast meat has been harder to secure with potential of possible market increases. This may also be true for tenders as well. Thigh meat and drums Is limited in current availability.
Dry Beans: The dry market overall continues to see firm pricing. As with other crops, the availability of acreage for planting is affecting dry bean pricing. Pinto and black beans are both expected to continue to firm. Greater than normal export opportunities are present for black beans that are contributing to the price pressure. Imports Limited supply is still the primary concern for imports. Mandarin oranges are especially hard hit as contracts in China are not being fulfilled which puts pressure on products here in the US. with continued demand prices will continue to rise. Frozen Vegetables Weather issues have severely limited the flow of products like okra, broccoli, cauliflower, and asparagus into the US. The availability of acreage for planting of crops in the US is a major concern. Every indication is that with current demand, frozen vegetable pricing will continue to climb. March 4, 2011 Produce California Lettuce & Mixed Vegetables Iceberg Lettuce: Growing conditions have improved, however the damage has been done to the iceberg crop, with no rebound in production volume expected through the end of the desert harvest season in late March. Prices will continue at extreme levels and quality will be poor, with heavy damage from epidermal blistering and peeling. Processed Salad: Salad processors are in an extreme deficit supply situation, unable to load trucks in a timely manner, and filling orders only at the 50 percent level. Force Majeure contract price increases continue to escalate. Romaine: The same scenario as exists with iceberg…blistering and peeling, small heads from which many damage leaves have been removed, and the resulting lightweight cartons. Low yields will continue. Prices extreme, quality poor. Romaine Hearts: Epidermal peeling is also an issue, although to a lesser degree compared to commodity romaine. An occasional misshapen head is present in the pack. Quality issues will continue through March. Prices extreme, quality fair. Green Leaf: Freeze damage present, although not to the extent that iceberg and romaine have been affected. Prices high, quality fair. Broccoli (bunched): The market is trending higher as we near the transition period for the harvest moving from the desert northward to Central California…beginning in mid-March. Prices high, quality good. Pin rot and water damage present in broccoli from Central California. Broccoli (crowns): Priced at a substantial premium compared to bunched broccoli. Prices high, quality good. Cauliflower: The market advanced again this week, with production levels down by 10 percent compared to February 2010. Prices high, quality good. Celery: The market firmed this week, with buyers stepping in at lower price levels. Quality is an issue, with blistering and peeling present in desert celery and pith in Oxnard. Prices high, quality fair. Carrots: Large sized carrots (jumbo, table) continue to be in extremely limited supply due to low yields during the harvest transition from the Southern San Joaquin Valley to the Imperial Valley. This shortage includes carrot sticks and carrot chunks (2 inch, 4 inch). No relief is expected until April. Shippers are unable to fill orders in full. Prices extreme, quality good. Artichokes: The cold winter has slowed plant growth; the size profile is heavy to the smaller sizes (36, 48, large loose)…these sizes offer the best value. Most samples are now frost-free. Prices moderate, quality good. Plentiful supplies on all sizes will become available by April. Asparagus: Prices remain high for late season production in Northern Mexico. Quality good. New crop harvesting in Central California has been set back by recent cold, wet growing conditions. Parsley (curly): Adequate availability, prices moderate, quality good. Parsley (Italian): Adequate availability, prices moderate, quality good. Spinach (bunched): Production beginning to recover…prices high, quality good. Kale (green): Good availability. Prices moderate, quality good. Kale (flowering): Steady availability for growers in the desert districts. Cilantro: Increasing supplies. Prices moderate, quality good. Green Onions: The market is gradually easing with improved weather conditions in Mexico, however planted acreage is below average. A meaningful increase in production is not expected until late March. Prices high, quality good. Leeks: Availability is adequate, prices high, quality good. Green Cabbage: Tight availability, prices high, quality good. Red Cabbage: Adequate availability, prices moderate, quality good. Bok Choy: Adequate supplies, prices high. Napa: Light supplies, prices high. Snow peas: Good availability…prices moderate, quality good. Garlic: Tight supplies, high prices…Reduced imports and poor quality from China. No relief until late summer. Spring Mix: Spring mix availability is gradually improving…growers have been able to re-introduce various red components into the mix. Prices high, quality good. Spinach (baby): Better availability, however occasional allocation still in effect, depending on the shipper. Arugula: Increasing production, adequate availability. Mache: Unavailable…quality poor. Berries Strawberries: Tight availability in the West…the harvest in Central Mexico is winding down and Oxnard continues with modest production volume. Prices high, quality fair. Plentiful availability for late season production in Florida. Raspberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blackberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blueberries: Late season harvest volume in Chile is decreasing…finishing by mid-April. New crop blueberries in Georgia and Florida will begin at that time. Still moderate supplies coming from Mexico. Prices high, quality good. California-Arizona Citrus Navel Oranges: Continued plentiful availability for California Navel oranges…no effects from cold weather or rain thus far. Prices low, quality excellent. Lemons: We are near the end of the season for desert lemons…the primary shipping district is now the San Joaquin Valley, with storage crop inventories for Ventura County growers being replenished for the summer shipping season. Good availability on all sizes, with best values being offered on the large sizes (75, 95, 115). Prices moderate, quality excellent. Limes (Persian): The market for large sizes is slowly easing, with much better availability and favorable prices for the small sizes (230, 250). Growers harvesting limes as early as possible in the growth cycle to take full advantage of current high market. Harvest area transition in Mexico to occur in late March. Prices high-to-extreme, quality good. Grapefruit: Good availability on Desert Rio Red variety in California & Arizona and Texas Rio Star in Texas. Prices low-to-moderate, quality excellent. Cara Cara Oranges: Now in peak season production. Moro Oranges: Production winding down…size profile heavy to 113’s & smaller. Mandarins: Good availability for medium and large sizes (24’s-36’s). Pummelos: Nearing the end of the season…best value on smaller sizes (14-18). Prices moderate, quality good. Minneola Tangelos: Season finished for desert growers…now shipping from Central & Southern California. Prices moderate, quality good. Pineapple: Production is beginning to increase in Costa Rica, Guatemala, Honduras and Panama…good availability is in the forecast for Easter. Mexican pineapples are also available. Melons Cantaloupes: Steady availability, market firm…prices high, quality excellent. Honeydews: Tight availability from Central America…Mexican harvesting getting underway…not enough volume to influence the market. Prices high, quality excellent. Watermelons: Increasing production from growers in the Guadalajara region in Southern Mexico. Prices moderate, quality excellent…both seedless and seeded varieties. Washington Apples and Pears Red Delicious: Good demand; market well supported by exports. Yields very good considering difficult growing conditions during spring and summer 2010. Markets are firm most sizes, expected to remain steady going into spring. Golden Delicious: Good availability, prices moderate. Bosc Pears: Good availability, prices moderate-to-high. D’Anjou Pears: Good availability, prices moderate-to-high. Bartlett Pears: New crop from Chile now available, prices moderate-to-high. Grapes & Soft Fruit Red Seedless Grapes: Supplies will be tight through late March with the transition from Flame seedless variety to Crimson. Prices moderate, quality good. Green Seedless Grapes: Availability increasing for Thompson seedless. Prices moderate, quality good. Kiwi (California): The first shipment of Chilean kiwi is now on the water, arriving in late March. California kiwi will continue to be available in the interim…transition will be smooth. Prices moderate, quality good. Avocados Hass: Calavo reports that the Mexican harvest is 2/3 complete, and the remaining 1/3 must last through July. The California Hass crop is 50 percent smaller compared to 2010. Chilean season is finished. The market continues to push higher on all sizes, with the greatest increases on the 48’s. Prices extreme, quality good. Eastern & Western Vegetables Green Bell Peppers: Limited availability and extreme prices on jumbo and extra large. Best availability on choice grade. Quality fair. Red Bell Peppers: Demand increasing, market firm. Prices moderate, quality good. Cucumbers: Tight supplies, production in Mexico winding down for the remainder of March. Prices high, quality fair. Green Beans: Good availability from growers in Florida and Central America. Prices moderate. Tight availability in Nogales. Prices extreme, quality poor. Eggplant: unavailable in Nogales and Florida. Product availability returning in April. Squash: Zucchini: Tight availability in Florida and Nogales. Prices extreme. Quality fair. Yellow: Plentiful supplies in Florida, adequate in Nogales. Florida: prices low, quality good. Nogales: prices high, quality fair. Tomatoes Round: The effects are now being manifested from the freeze that occurred in Mexico during early February…acreage has been lost and production is on the decline…causing upward pressure in the market. Storage inventories are depleted…the upward price trend will continue. Prices high, quality fair. Roma: Same as round tomatoes. Cherry: Same as round tomatoes. Grape: Same as round tomatoes. Potatoes (Idaho) Russets: Availability has tightened considerably for the US #2 Idaho Russets, with a sharp advance in the market this week. Prices are also on the rise for carton packed, small sized potatoes (80, 90, 100). We can expect to see continued subtle to sharp advances in prices on a weekly basis going forward. Prices high, quality good. Onions (Northwest) Yellow: Onions are in oversupply…Mexican growers in full production, supplying the southwestern and southeastern U.S. Packers of storage crop onions in the Northwest will continue to ship through the month of April. Prices low, quality good. Red: Red onions are in oversupply. Quality good, market low. White: Same as yellow onions. Soybean Futures The soybean complex has traded all over this week. The futures price started higher in response to ideas that U.S. soybeans out of the Pacific Northwest are once again competitive with Brazilian origin for the next few weeks. Surging soybean oil also helps as the idea of manufacturing bio-diesel will become profitable due to surging gasoline prices. The complex sold off sharply in response to the break in corn but managed to recover most of those losses by day's end with the exception of soybean meal. Basis levels for soybeans are mostly steady with the Gulf appearing a bit easier. March beans gain on the spread due to the lack of deliveries against the March contract. Forward spreads within the old crop do little, maybe a bit easier. Spreads within new crop firmed a bit, in part to the effort of new crop beans trying to secure acres for the upcoming season. If the acres are not contracted, beans within the U.S. will continue to tighten making the recent tight years pale in comparison. The technical look for soybeans and soybean meal is a bit bothersome. Soybeans and soybean meal match last Friday's highs and fail to follow through. The price action is suggesting an interim double top of the up flagging efforts from last week's lows. Business is expected to fade in the coming weeks/months as the South American new crop comes on line. This holds true for the soybean oil market as well. Soybean Oil The continued unrest will force drastic market swings such as we have seen in the last two weeks. Export sales continue to be noticeably higher which also contributes to the strong market. Outside markets continue to drive the upward trend seen in the soybean oil market. Look for this market to remain strong with occasional, short lived, small drops. Discuss forward strategy with your oil partner. Mideast/North African Tension, Energies Continued civil unrest in Libya and growing concern over oil supply disruptions sent energies higher. Libyan sources contend that oil production and shipments are down 50%, but industry sources suggest that production is down far more. It is thought that the ships that have been loaded in the last several days have been loaded with inventory accumulated prior to the civil unrest and that new oil is not being received from the oil fields. The Department of Energy released its weekly numbers on Wednesday. Crude Oil supplies were down 400,000 barrels for the week, up 4.7 million from a year ago. Total gasoline stocks dropped by 3.6 million barrels, up 2.8 million barrels from a year ago. Gasoline and oil stocks have been increasing mostly every week and gasoline prices at the pump are still going higher. We continue to believe that energy prices will continue to remain strong and find support on dips as long as civil unrest remains in the Middle East and North Africa. This unrest will have a direct affect on commodities traded daily. As long as this country is in disarray, expect commodities to remain strong.
Seafood News from the Gulf- The area of Federal Waters closed to fishing in the Gulf remains unchanged since February 1st. The current area closed to fishing remains at 1041 square miles. Gulf Shrimp- Market is steady to firm. Black Tiger Shrimp- Market is mixed. Several sizes are listed as firming with the exception of 16-20 and 21-25 Headless Shell On as these are listed as weaker. Inventories are listed as tighter while demand remains good. White Shrimp- Market is firming. 31-35 and smaller are listed as firming because of tighter inventories. Larger sizes are listed as steady. Salmon- Market is steady to firm. Replacement costs are noted as higher. King Crab- Market is firm. Snow Crab- Market is steady but firm. Inventories remain very light with a good demand. Warm Water Lobster Tails- Market is steady. Demand is listed as low. American Lobster Tails- Market is steady. Smaller sizes are reported to have limited supplies. Cod- Market is firm. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firming. Demand is listed as good. Pollock- Market is steady. Inventories are reported as good for a light to moderate demand. Whiting- Market is steady. Even though supplies are reported as very light, demand remains low and are keeping inventories in pace with demand. Domestic Catfish- Market is firm. Inventories remain a concern. Scallops- Market is steady. Inventories remain light with a demand listed as down. Tilapia- Market is steady but firm. Demand is listed as good with replacement costs listed as higher. Dairy Why are dairy prices continuing to rise? Weather issues- Drought in New Zealand has reduced their milk production. Heavy rains in Australia reduced their milk production. Weather issues in South America having impact on Dairy Market. Strong Demand from both Russia and China for dairy products. Low global inventories on dairy products. Higher international cheese prices. Increased global grain prices. Cheese-Market is firm. Pricing continued to climb for both the CME Block and the Barrel markets this week. Both markets are trending well above same time last year and the gap has continued to increase. Reports show that Mozzarella demand has remained strong recently. Butter- Market is firming. Pricing has continued to increase this week as Wednesday saw a sharp increase in market pricing. Pricing remains well above same time last year. Eggs Shell Eggs- Market is soft. Retail demand is listed as poor to fair. Reports show that more advertising is set for next week. Inventories are listed as long. Inventories are up 12% from last week. Egg Products- Market is steady. Beef Market is firm. Live cattle pricing continues to climb. Total beef production for last week was 1.5% lower than previous week. Packers have announced reduced hours for the near future which may lead to even tighter inventories. March is expected to be a tight month on availability. Grilling season is just around the corner and demand should seasonally increase as we get closer to summer. Futures are still showing firmer pricing as the year progresses. Chucks- Market is steady but firm. Rounds- Market is steady but firm. Earlier in the week saw pricing firm across the board while later in the week pricing remained more steady. Loins-Market is steady but firm. As with the rounds pricing advanced earlier this week and held its ground thru the end of the week. Upcoming grilling season is expected to put additional pressure on demand and pricing. Ribs- Market is firming. This market is expected to firm in pricing over the next few weeks. Grinds-Market is softening. Short term pricing has shown signs of weakening. Long term expectations show there could be some strength come back into pricing as we get closer to grilling season. Pork Market is steady. Total pork production was up .9% last week versus the week before and steady with same time last year. Live prices continue to trend higher than same time last year with futures showing pricing higher as we near summer. Exports have eased after the strong demand the past several weeks. Bellies- Market is firm. Report show pricing continuing to remain above last year as we head into the summer months. Hams- Market is steady but firm. Exports have eased but Easter demand is holding pricing in line. Demand is listed as average for this time of the year. Butts- Market has softened. Pricing has softened thru the week. Export demand is down and reports show that pricing could soften over the next few weeks if that demand does not pick back up. Ribs- Market is steady. Loins- Market is firm. Reports show heavy promoting over the next few weeks which should help increase demand. Chicken The markets remain on solid ground. With higher priced proteins, chicken has become an alternative source. High corn prices and transportation costs have also played a part in the market levels we’ve seen this week. WOGs and whole birds are short of full needs, and remain harder to secure. Markets this week have seen daily increases as these items have become tighter. This trend could continue into next week. Whole breast availability is limited and trade at current levels. Boneless and tenders also trade at higher levels as these items are limited in supply. Dark meat trades at steady levels to higher. Leg quarters, legs and thighs are adequate for current needs and are moving at current market levels. Wings are starting to see some interest as market levels dropped the last few weeks. This week though this market has remained steady. Turkey The turkey markets are described as better than seasonal as inquires are better than the norm for the first of March. Overall most items are trading at full market or better. Whole birds have traded at full market or better for end of March into April, but limited or no availability for current ship appears to be available. Fresh and frozen breast meat, thigh meat, drums and wings appear to be the most sought after items on the list. The turkey complex is sitting in a current position that leads most to believe it will remain solid through the spring.
Canned fruits and vegetables As the year progresses things are tightening and beets are an item to watch in canned goods. At this point restrictions have not been placed but movement is being closely monitored and restrictions could come at any time. For canned goods in general fairly well balanced inventories and the coming inflation concerns canners are not offering the kind of deals seen this time last year. Pasta Wheat futures and finished goods demand are the primary drivers of pasta prices. Increases in semolina prices to manufactures are continuing to pressure suppliers to increase prices on finished pasta goods. Frozen Vegetables The talk this week in frozen has been almost in unison across suppliers. Inflation, inflation, inflation. But there is a catch that makes it even worse. For about a year and half pricing for frozen vegetables has been deflated. Suppliers are expecting drastic price increases with the new pack that would bring pricing not just to pre deflation levels but to even higher levels due to increases in nearly all cost inputs. Market Report
Inflation for 2011 Expect 5-7 % inflation over the next 12-18 months for Foodservice as well as Retail. Many global factors driving costs: Weak US Dollar Rising Energy Prices Increased Support for Ethanol – driving corn and feed prices up. High prices offered for Corn , reducing the planting acreage for other products. Strong Global GDP (led by China) Shortfall in World Wheat Production Commodity Speculation Seafood Gulf Shrimp- Market is steady. Inventory on larger sizes remains tight and pricing on the larger sizes is listed as firm. Other sizes are listed as steady but pricing varies from supplier to supplier. Black Tiger Shrimp- Market is steady. White Shrimp- Market is firming. Larger count shrimp are listed as steady. 31-35 and smaller HL/SO are listed as firm with smaller sizes showing additional firming in pricing. Mexican Shrimp- Market is steady. U15 and larger inventories are in tighter supply and pricing is firmer. Warm Water Lobster Tails- Market is steady. North American Lobster Tails- Market is steady to softening. Mid-sized products are listed as weak with pricing varying between suppliers. Small sizes are steady but inventories are tight. Salmon- Market is firming. Inventories are listed as light for the entire category. Demand is reported as good. King Crab- Market is firm. Inventories remain tight and replacement product is listed as very limited. Snow Crab- Market is firm. Inventories remain tight with 5-8’s being reported as being very tight. Alaskan Opilio Crab- Market is firm. Supplies are tight for a good demand. Dungeness Crab- Market is firm. Inventories remain light for an active demand. Pangasius- Market is firming. Reports show that replacement costs continue to rise. Demand is listed as good. Domestic Catfish- Market is firm. Reports show that availability is a concern as demand is outpacing supplies. Tilapia- Market is steady but firm. Scallops- Market is steady but firm. Inventories remain light. Cod- Market is firming. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firmer. Demand is listed as good. Pollock- Market is steady. Whiting- Market is steady. Inventories remain light but are keeping pace with a light demand. Dairy Cheese- Market is firming. The CME markets continued to firm again this week. Pricing is now at its highest point for the year thus far. Demand remains good. Reports show that milk supplies are fairly tight worldwide and are putting additional pressure on the cheese markets. Butter- Market is softening. Butter production is up and is helping to slowly build inventories. Inventories last week increased by another 1.6 million lbs. Total inventories still remain less than half the amount of same time last year(20.4 versus 56.7 million lbs). Eggs Shell Eggs- Market is soft. Total egg inventories increased by another 4% from last week. Retail demand is listed as fair. Foodservice demand is listed as good. Jumbos and Large are listed in good supply. Egg Products- Market is steady. Beef Market is firmer. Live prices pushed higher last week and are now at levels not seen since 2003. Higher grain pricing remains a concern for the protein categories as feed costs are expected to increase. Overall beef production was reported as up just over 2% from previous week. Demand is listed as good. Grinds- Market is steady to softer. Demand remains good and product remains in tight supply. Pricing still remains well above same time last year. Ribs- Market is steady. Loins- Market is steady to firmer. Increased demand is putting additional pressure on the category. Chucks- Market is steady to firmer. Continued increased demand and additional exports continue to put pressure on pricing. Rounds- Market is steady to firmer. Demand is listed as good. Chucks- Market is steady to firmer. Pork Market is firm. Pork production was down last week. Total production was down about 3.3% from previous week. Futures continue to show firm pricing for the category as the year progresses. Bellies- Market is steady but firm. Inventories remain tight with a good demand. Forecasts shows pricing firming over the next few weeks. Reports show that the reason the current market has held steady is that availability is so tight that very little trading is being reported. Hams- Market is firm. Demand is reported as good. Exports continue to be strong and combined with reduced harvests are helping push pricing higher. Loins- Market is firm. Demand is listed as good. Butts- Market is firm. Exports remain very strong. Ribs- Market is steady. Demand is listed as softer. Wheat Wheat futures prices traded lower this week, but basis premium levels are firm to higher, leaving flour prices mostly flat. China’s winter wheat crop received some rain, and their government called supplies adequate; however reliable information about Chinese agricultural production can be difficult to obtain. Forecasts for important wheat growing regions of China and the U.S. are calling for dryer weather through the end of this month. It was thought the U.S. had lost export business to lower-priced competitors, but with the drop in futures prices this trend could be quickly reversed.
Soybean Oil This market has been a rollercoaster this week. Dropping on Thursday after rebounding from losses earlier in the week. The Libyan unrest continues to have an effect on the soybean oil market, as well as, other energy markets. US crude is up more than $4.00 in early trading. Gains in crude oil would normally be supportive for the oilseed markets, but the global political uncertainty taking crude oil higher is also making investors more cautious, causing them to exit some of the riskier agricultural markets. The overall up and down turn of the market this week makes it extremely difficult to book/buy with any certainty. Monitor trends closely and buy to meet immediate needs. Chicken Demand has been mostly basic with the majority of inquires seasonal. In general most inventory levels are in balance with current demand, for the exception of a few items. WOGs and whole birds are one of those items where inventory has become tight, with inquiries holding at market levels. Boneless and tenders are well supported, with tenders trading at full market. Whole breast are steady. Dark meat items such as legs, leg quarters, and thighs are tight with markets levels moving up this week. Wings continue to be weak, with this week’s market reflecting suppliers wanting to clear out some inventory. Turkey Markets are pretty active, more so then what we typically see this time of year. Undertone is strong on most items. Whole birds have seen a slight increase in markets this week as product becomes harder to secure. Raw material demand is active as is both fresh and frozen MST. Wings appear to be trending higher, as tom and hen two joints rate a full steady undertone with supplies less than adequate. Fresh breast meat has been harder to secure with potential of possible market increases. This may also be true for tenders as well. Thigh meat and drums Is limited in current availability.
Dry Beans: The dry market overall continues to see firm pricing. As with other crops, the availability of acreage for planting is affecting dry bean pricing. Pinto and black beans are both expected to continue to firm. Greater than normal export opportunities are present for black beans that are contributing to the price pressure. Imports Limited supply is still the primary concern for imports. Mandarin oranges are especially hard hit as contracts in China are not being fulfilled which puts pressure on products here in the US. with continued demand prices will continue to rise. Frozen Vegetables Weather issues have severely limited the flow of products like okra, broccoli, cauliflower, and asparagus into the US. The availability of acreage for planting of crops in the US is a major concern. Every indication is that with current demand, frozen vegetable pricing will continue to climb. Market Report Produce California Lettuce & Mixed Vegetables Iceberg Lettuce: Growing conditions have improved, however the damage has been done to the iceberg crop, with no rebound in production volume expected through the end of the desert harvest season in late March. Prices will continue at extreme levels and quality will be poor, with heavy damage from epidermal blistering and peeling. Processed Salad: Salad processors are in an extreme deficit supply situation, unable to load trucks in a timely manner, and filling orders only at the 50 percent level. Force Majeure contract price increases continue to escalate. Romaine: The same scenario as exists with iceberg…blistering and peeling, small heads from which many damage leaves have been removed, and the resulting lightweight cartons. Low yields will continue. Prices extreme, quality poor. Romaine Hearts: Epidermal peeling is also an issue, although to a lesser degree compared to commodity romaine. An occasional misshapen head is present in the pack. Quality issues will continue through March. Prices extreme, quality fair. Green Leaf: Freeze damage present, although not to the extent that iceberg and romaine have been affected. Prices high, quality fair. Broccoli (bunched): The market is trending higher as we near the transition period for the harvest moving from the desert northward to Central California…beginning in mid-March. Prices high, quality good. Pin rot and water damage present in broccoli from Central California. Broccoli (crowns): Priced at a substantial premium compared to bunched broccoli. Prices high, quality good. Cauliflower: The market advanced again this week, with production levels down by 10 percent compared to February 2010. Prices high, quality good. Celery: The market firmed this week, with buyers stepping in at lower price levels. Quality is an issue, with blistering and peeling present in desert celery and pith in Oxnard. Prices high, quality fair. Carrots: Large sized carrots (jumbo, table) continue to be in extremely limited supply due to low yields during the harvest transition from the Southern San Joaquin Valley to the Imperial Valley. This shortage includes carrot sticks and carrot chunks (2 inch, 4 inch). No relief is expected until April. Shippers are unable to fill orders in full. Prices extreme, quality good. Artichokes: The cold winter has slowed plant growth; the size profile is heavy to the smaller sizes (36, 48, large loose)…these sizes offer the best value. Most samples are now frost-free. Prices moderate, quality good. Plentiful supplies on all sizes will become available by April. Asparagus: Prices remain high for late season production in Northern Mexico. Quality good. New crop harvesting in Central California has been set back by recent cold, wet growing conditions. Parsley (curly): Adequate availability, prices moderate, quality good. Parsley (Italian): Adequate availability, prices moderate, quality good. Spinach (bunched): Production beginning to recover…prices high, quality good. Kale (green): Good availability. Prices moderate, quality good. Kale (flowering): Steady availability for growers in the desert districts. Cilantro: Increasing supplies. Prices moderate, quality good. Green Onions: The market is gradually easing with improved weather conditions in Mexico, however planted acreage is below average. A meaningful increase in production is not expected until late March. Prices high, quality good. Leeks: Availability is adequate, prices high, quality good. Green Cabbage: Tight availability, prices high, quality good. Red Cabbage: Adequate availability, prices moderate, quality good. Bok Choy: Adequate supplies, prices high. Napa: Light supplies, prices high. Snow peas: Good availability…prices moderate, quality good. Garlic: Tight supplies, high prices…Reduced imports and poor quality from China. No relief until late summer. Spring Mix: Spring mix availability is gradually improving…growers have been able to re-introduce various red components into the mix. Prices high, quality good. Spinach (baby): Better availability, however occasional allocation still in effect, depending on the shipper. Arugula: Increasing production, adequate availability. Mache: Unavailable…quality poor. Berries Strawberries: Tight availability in the West…the harvest in Central Mexico is winding down and Oxnard continues with modest production volume. Prices high, quality fair. Plentiful availability for late season production in Florida. Raspberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blackberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blueberries: Late season harvest volume in Chile is decreasing…finishing by mid-April. New crop blueberries in Georgia and Florida will begin at that time. Still moderate supplies coming from Mexico. Prices high, quality good. California-Arizona Citrus Navel Oranges: Continued plentiful availability for California Navel oranges…no effects from cold weather or rain thus far. Prices low, quality excellent. Lemons: We are near the end of the season for desert lemons…the primary shipping district is now the San Joaquin Valley, with storage crop inventories for Ventura County growers being replenished for the summer shipping season. Good availability on all sizes, with best values being offered on the large sizes (75, 95, 115). Prices moderate, quality excellent. Limes (Persian): The market for large sizes is slowly easing, with much better availability and favorable prices for the small sizes (230, 250). Growers harvesting limes as early as possible in the growth cycle to take full advantage of current high market. Harvest area transition in Mexico to occur in late March. Prices high-to-extreme, quality good. Grapefruit: Good availability on Desert Rio Red variety in California & Arizona and Texas Rio Star in Texas. Prices low-to-moderate, quality excellent. Cara Cara Oranges: Now in peak season production. Moro Oranges: Production winding down…size profile heavy to 113’s & smaller. Mandarins: Good availability for medium and large sizes (24’s-36’s). Pummelos: Nearing the end of the season…best value on smaller sizes (14-18). Prices moderate, quality good. Minneola Tangelos: Season finished for desert growers…now shipping from Central & Southern California. Prices moderate, quality good. Pineapple: Production is beginning to increase in Costa Rica, Guatemala, Honduras and Panama…good availability is in the forecast for Easter. Mexican pineapples are also available. Melons Cantaloupes: Steady availability, market firm…prices high, quality excellent. Honeydews: Tight availability from Central America…Mexican harvesting getting underway…not enough volume to influence the market. Prices high, quality excellent. Watermelons: Increasing production from growers in the Guadalajara region in Southern Mexico. Prices moderate, quality excellent…both seedless and seeded varieties. Washington Apples and Pears Red Delicious: Good demand; market well supported by exports. Yields very good considering difficult growing conditions during spring and summer 2010. Markets are firm most sizes, expected to remain steady going into spring. Golden Delicious: Good availability, prices moderate. Bosc Pears: Good availability, prices moderate-to-high. D’Anjou Pears: Good availability, prices moderate-to-high. Bartlett Pears: New crop from Chile now available, prices moderate-to-high. Grapes & Soft Fruit Red Seedless Grapes: Supplies will be tight through late March with the transition from Flame seedless variety to Crimson. Prices moderate, quality good. Green Seedless Grapes: Availability increasing for Thompson seedless. Prices moderate, quality good. Kiwi (California): The first shipment of Chilean kiwi is now on the water, arriving in late March. California kiwi will continue to be available in the interim…transition will be smooth. Prices moderate, quality good. Avocados Hass: Calavo reports that the Mexican harvest is 2/3 complete, and the remaining 1/3 must last through July. The California Hass crop is 50 percent smaller compared to 2010. Chilean season is finished. The market continues to push higher on all sizes, with the greatest increases on the 48’s. Prices extreme, quality good. Eastern & Western Vegetables Green Bell Peppers: Limited availability and extreme prices on jumbo and extra large. Best availability on choice grade. Quality fair. Red Bell Peppers: Demand increasing, market firm. Prices moderate, quality good. Cucumbers: Tight supplies, production in Mexico winding down for the remainder of March. Prices high, quality fair. Green Beans: Good availability from growers in Florida and Central America. Prices moderate. Tight availability in Nogales. Prices extreme, quality poor. Eggplant: unavailable in Nogales and Florida. Product availability returning in April. Squash: Zucchini: Tight availability in Florida and Nogales. Prices extreme. Quality fair. Yellow: Plentiful supplies in Florida, adequate in Nogales. Florida: prices low, quality good. Nogales: prices high, quality fair. Tomatoes Round: The effects are now being manifested from the freeze that occurred in Mexico during early February…acreage has been lost and production is on the decline…causing upward pressure in the market. Storage inventories are depleted…the upward price trend will continue. Prices high, quality fair. Roma: Same as round tomatoes. Cherry: Same as round tomatoes. Grape: Same as round tomatoes. Potatoes (Idaho) Russets: Availability has tightened considerably for the US #2 Idaho Russets, with a sharp advance in the market this week. Prices are also on the rise for carton packed, small sized potatoes (80, 90, 100). We can expect to see continued subtle to sharp advances in prices on a weekly basis going forward. Prices high, quality good. Onions (Northwest) Yellow: Onions are in oversupply…Mexican growers in full production, supplying the southwestern and southeastern U.S. Packers of storage crop onions in the Northwest will continue to ship through the month of April. Prices low, quality good. Red: Red onions are in oversupply. Quality good, market low. White: Same as yellow onions. Soybean Futures The soybean complex has traded all over this week. The futures price started higher in response to ideas that U.S. soybeans out of the Pacific Northwest are once again competitive with Brazilian origin for the next few weeks. Surging soybean oil also helps as the idea of manufacturing bio-diesel will become profitable due to surging gasoline prices. The complex sold off sharply in response to the break in corn but managed to recover most of those losses by day's end with the exception of soybean meal. Basis levels for soybeans are mostly steady with the Gulf appearing a bit easier. March beans gain on the spread due to the lack of deliveries against the March contract. Forward spreads within the old crop do little, maybe a bit easier. Spreads within new crop firmed a bit, in part to the effort of new crop beans trying to secure acres for the upcoming season. If the acres are not contracted, beans within the U.S. will continue to tighten making the recent tight years pale in comparison. The technical look for soybeans and soybean meal is a bit bothersome. Soybeans and soybean meal match last Friday's highs and fail to follow through. The price action is suggesting an interim double top of the up flagging efforts from last week's lows. Business is expected to fade in the coming weeks/months as the South American new crop comes on line. This holds true for the soybean oil market as well. Soybean Oil The continued unrest will force drastic market swings such as we have seen in the last two weeks. Export sales continue to be noticeably higher which also contributes to the strong market. Outside markets continue to drive the upward trend seen in the soybean oil market. Look for this market to remain strong with occasional, short lived, small drops. Discuss forward strategy with your oil partner. Mideast/North African Tension, Energies Continued civil unrest in Libya and growing concern over oil supply disruptions sent energies higher. Libyan sources contend that oil production and shipments are down 50%, but industry sources suggest that production is down far more. It is thought that the ships that have been loaded in the last several days have been loaded with inventory accumulated prior to the civil unrest and that new oil is not being received from the oil fields. The Department of Energy released its weekly numbers on Wednesday. Crude Oil supplies were down 400,000 barrels for the week, up 4.7 million from a year ago. Total gasoline stocks dropped by 3.6 million barrels, up 2.8 million barrels from a year ago. Gasoline and oil stocks have been increasing mostly every week and gasoline prices at the pump are still going higher. We continue to believe that energy prices will continue to remain strong and find support on dips as long as civil unrest remains in the Middle East and North Africa. This unrest will have a direct affect on commodities traded daily. As long as this country is in disarray, expect commodities to remain strong.
Seafood News from the Gulf- The area of Federal Waters closed to fishing in the Gulf remains unchanged since February 1st. The current area closed to fishing remains at 1041 square miles. Gulf Shrimp- Market is steady to firm. Black Tiger Shrimp- Market is mixed. Several sizes are listed as firming with the exception of 16-20 and 21-25 Headless Shell On as these are listed as weaker. Inventories are listed as tighter while demand remains good. White Shrimp- Market is firming. 31-35 and smaller are listed as firming because of tighter inventories. Larger sizes are listed as steady. Salmon- Market is steady to firm. Replacement costs are noted as higher. King Crab- Market is firm. Snow Crab- Market is steady but firm. Inventories remain very light with a good demand. Warm Water Lobster Tails- Market is steady. Demand is listed as low. American Lobster Tails- Market is steady. Smaller sizes are reported to have limited supplies. Cod- Market is firm. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firming. Demand is listed as good. Pollock- Market is steady. Inventories are reported as good for a light to moderate demand. Whiting- Market is steady. Even though supplies are reported as very light, demand remains low and are keeping inventories in pace with demand. Domestic Catfish- Market is firm. Inventories remain a concern. Scallops- Market is steady. Inventories remain light with a demand listed as down. Tilapia- Market is steady but firm. Demand is listed as good with replacement costs listed as higher. Dairy Why are dairy prices continuing to rise? Weather issues- Drought in New Zealand has reduced their milk production. Heavy rains in Australia reduced their milk production. Weather issues in South America having impact on Dairy Market. Strong Demand from both Russia and China for dairy products. Low global inventories on dairy products. Higher international cheese prices. Increased global grain prices. Cheese-Market is firm. Pricing continued to climb for both the CME Block and the Barrel markets this week. Both markets are trending well above same time last year and the gap has continued to increase. Reports show that Mozzarella demand has remained strong recently. Butter- Market is firming. Pricing has continued to increase this week as Wednesday saw a sharp increase in market pricing. Pricing remains well above same time last year. Eggs Shell Eggs- Market is soft. Retail demand is listed as poor to fair. Reports show that more advertising is set for next week. Inventories are listed as long. Inventories are up 12% from last week. Egg Products- Market is steady. Beef Market is firm. Live cattle pricing continues to climb. Total beef production for last week was 1.5% lower than previous week. Packers have announced reduced hours for the near future which may lead to even tighter inventories. March is expected to be a tight month on availability. Grilling season is just around the corner and demand should seasonally increase as we get closer to summer. Futures are still showing firmer pricing as the year progresses. Chucks- Market is steady but firm. Rounds- Market is steady but firm. Earlier in the week saw pricing firm across the board while later in the week pricing remained more steady. Loins-Market is steady but firm. As with the rounds pricing advanced earlier this week and held its ground thru the end of the week. Upcoming grilling season is expected to put additional pressure on demand and pricing. Ribs- Market is firming. This market is expected to firm in pricing over the next few weeks. Grinds-Market is softening. Short term pricing has shown signs of weakening. Long term expectations show there could be some strength come back into pricing as we get closer to grilling season. Pork Market is steady. Total pork production was up .9% last week versus the week before and steady with same time last year. Live prices continue to trend higher than same time last year with futures showing pricing higher as we near summer. Exports have eased after the strong demand the past several weeks. Bellies- Market is firm. Report show pricing continuing to remain above last year as we head into the summer months. Hams- Market is steady but firm. Exports have eased but Easter demand is holding pricing in line. Demand is listed as average for this time of the year. Butts- Market has softened. Pricing has softened thru the week. Export demand is down and reports show that pricing could soften over the next few weeks if that demand does not pick back up. Ribs- Market is steady. Loins- Market is firm. Reports show heavy promoting over the next few weeks which should help increase demand. Chicken The markets remain on solid ground. With higher priced proteins, chicken has become an alternative source. High corn prices and transportation costs have also played a part in the market levels we’ve seen this week. WOGs and whole birds are short of full needs, and remain harder to secure. Markets this week have seen daily increases as these items have become tighter. This trend could continue into next week. Whole breast availability is limited and trade at current levels. Boneless and tenders also trade at higher levels as these items are limited in supply. Dark meat trades at steady levels to higher. Leg quarters, legs and thighs are adequate for current needs and are moving at current market levels. Wings are starting to see some interest as market levels dropped the last few weeks. This week though this market has remained steady. Turkey The turkey markets are described as better than seasonal as inquires are better than the norm for the first of March. Overall most items are trading at full market or better. Whole birds have traded at full market or better for end of March into April, but limited or no availability for current ship appears to be available. Fresh and frozen breast meat, thigh meat, drums and wings appear to be the most sought after items on the list. The turkey complex is sitting in a current position that leads most to believe it will remain solid through the spring.
Canned fruits and vegetables As the year progresses things are tightening and beets are an item to watch in canned goods. At this point restrictions have not been placed but movement is being closely monitored and restrictions could come at any time. For canned goods in general fairly well balanced inventories and the coming inflation concerns canners are not offering the kind of deals seen this time last year. Pasta Wheat futures and finished goods demand are the primary drivers of pasta prices. Increases in semolina prices to manufactures are continuing to pressure suppliers to increase prices on finished pasta goods. Frozen Vegetables The talk this week in frozen has been almost in unison across suppliers. Inflation, inflation, inflation. But there is a catch that makes it even worse. For about a year and half pricing for frozen vegetables has been deflated. Suppliers are expecting drastic price increases with the new pack that would bring pricing not just to pre deflation levels but to even higher levels due to increases in nearly all cost inputs. Market Report
Inflation for 2011 Expect 5-7 % inflation over the next 12-18 months for Foodservice as well as Retail. Many global factors driving costs: Weak US Dollar Rising Energy Prices Increased Support for Ethanol – driving corn and feed prices up. High prices offered for Corn , reducing the planting acreage for other products. Strong Global GDP (led by China) Shortfall in World Wheat Production Commodity Speculation Seafood Gulf Shrimp- Market is steady. Inventory on larger sizes remains tight and pricing on the larger sizes is listed as firm. Other sizes are listed as steady but pricing varies from supplier to supplier. Black Tiger Shrimp- Market is steady. White Shrimp- Market is firming. Larger count shrimp are listed as steady. 31-35 and smaller HL/SO are listed as firm with smaller sizes showing additional firming in pricing. Mexican Shrimp- Market is steady. U15 and larger inventories are in tighter supply and pricing is firmer. Warm Water Lobster Tails- Market is steady. North American Lobster Tails- Market is steady to softening. Mid-sized products are listed as weak with pricing varying between suppliers. Small sizes are steady but inventories are tight. Salmon- Market is firming. Inventories are listed as light for the entire category. Demand is reported as good. King Crab- Market is firm. Inventories remain tight and replacement product is listed as very limited. Snow Crab- Market is firm. Inventories remain tight with 5-8’s being reported as being very tight. Alaskan Opilio Crab- Market is firm. Supplies are tight for a good demand. Dungeness Crab- Market is firm. Inventories remain light for an active demand. Pangasius- Market is firming. Reports show that replacement costs continue to rise. Demand is listed as good. Domestic Catfish- Market is firm. Reports show that availability is a concern as demand is outpacing supplies. Tilapia- Market is steady but firm. Scallops- Market is steady but firm. Inventories remain light. Cod- Market is firming. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firmer. Demand is listed as good. Pollock- Market is steady. Whiting- Market is steady. Inventories remain light but are keeping pace with a light demand. Dairy Cheese- Market is firming. The CME markets continued to firm again this week. Pricing is now at its highest point for the year thus far. Demand remains good. Reports show that milk supplies are fairly tight worldwide and are putting additional pressure on the cheese markets. Butter- Market is softening. Butter production is up and is helping to slowly build inventories. Inventories last week increased by another 1.6 million lbs. Total inventories still remain less than half the amount of same time last year(20.4 versus 56.7 million lbs). Eggs Shell Eggs- Market is soft. Total egg inventories increased by another 4% from last week. Retail demand is listed as fair. Foodservice demand is listed as good. Jumbos and Large are listed in good supply. Egg Products- Market is steady. Beef Market is firmer. Live prices pushed higher last week and are now at levels not seen since 2003. Higher grain pricing remains a concern for the protein categories as feed costs are expected to increase. Overall beef production was reported as up just over 2% from previous week. Demand is listed as good. Grinds- Market is steady to softer. Demand remains good and product remains in tight supply. Pricing still remains well above same time last year. Ribs- Market is steady. Loins- Market is steady to firmer. Increased demand is putting additional pressure on the category. Chucks- Market is steady to firmer. Continued increased demand and additional exports continue to put pressure on pricing. Rounds- Market is steady to firmer. Demand is listed as good. Chucks- Market is steady to firmer. Pork Market is firm. Pork production was down last week. Total production was down about 3.3% from previous week. Futures continue to show firm pricing for the category as the year progresses. Bellies- Market is steady but firm. Inventories remain tight with a good demand. Forecasts shows pricing firming over the next few weeks. Reports show that the reason the current market has held steady is that availability is so tight that very little trading is being reported. Hams- Market is firm. Demand is reported as good. Exports continue to be strong and combined with reduced harvests are helping push pricing higher. Loins- Market is firm. Demand is listed as good. Butts- Market is firm. Exports remain very strong. Ribs- Market is steady. Demand is listed as softer. Wheat Wheat futures prices traded lower this week, but basis premium levels are firm to higher, leaving flour prices mostly flat. China’s winter wheat crop received some rain, and their government called supplies adequate; however reliable information about Chinese agricultural production can be difficult to obtain. Forecasts for important wheat growing regions of China and the U.S. are calling for dryer weather through the end of this month. It was thought the U.S. had lost export business to lower-priced competitors, but with the drop in futures prices this trend could be quickly reversed.
Soybean Oil This market has been a rollercoaster this week. Dropping on Thursday after rebounding from losses earlier in the week. The Libyan unrest continues to have an effect on the soybean oil market, as well as, other energy markets. US crude is up more than $4.00 in early trading. Gains in crude oil would normally be supportive for the oilseed markets, but the global political uncertainty taking crude oil higher is also making investors more cautious, causing them to exit some of the riskier agricultural markets. The overall up and down turn of the market this week makes it extremely difficult to book/buy with any certainty. Monitor trends closely and buy to meet immediate needs. Chicken Demand has been mostly basic with the majority of inquires seasonal. In general most inventory levels are in balance with current demand, for the exception of a few items. WOGs and whole birds are one of those items where inventory has become tight, with inquiries holding at market levels. Boneless and tenders are well supported, with tenders trading at full market. Whole breast are steady. Dark meat items such as legs, leg quarters, and thighs are tight with markets levels moving up this week. Wings continue to be weak, with this week’s market reflecting suppliers wanting to clear out some inventory. Turkey Markets are pretty active, more so then what we typically see this time of year. Undertone is strong on most items. Whole birds have seen a slight increase in markets this week as product becomes harder to secure. Raw material demand is active as is both fresh and frozen MST. Wings appear to be trending higher, as tom and hen two joints rate a full steady undertone with supplies less than adequate. Fresh breast meat has been harder to secure with potential of possible market increases. This may also be true for tenders as well. Thigh meat and drums Is limited in current availability.
Dry Beans: The dry market overall continues to see firm pricing. As with other crops, the availability of acreage for planting is affecting dry bean pricing. Pinto and black beans are both expected to continue to firm. Greater than normal export opportunities are present for black beans that are contributing to the price pressure. Imports Limited supply is still the primary concern for imports. Mandarin oranges are especially hard hit as contracts in China are not being fulfilled which puts pressure on products here in the US. with continued demand prices will continue to rise. Frozen Vegetables Weather issues have severely limited the flow of products like okra, broccoli, cauliflower, and asparagus into the US. The availability of acreage for planting of crops in the US is a major concern. Every indication is that with current demand, frozen vegetable pricing will continue to climb. Market Report Produce California Lettuce & Mixed Vegetables Iceberg Lettuce: Growing conditions have improved, however the damage has been done to the iceberg crop, with no rebound in production volume expected through the end of the desert harvest season in late March. Prices will continue at extreme levels and quality will be poor, with heavy damage from epidermal blistering and peeling. Processed Salad: Salad processors are in an extreme deficit supply situation, unable to load trucks in a timely manner, and filling orders only at the 50 percent level. Force Majeure contract price increases continue to escalate. Romaine: The same scenario as exists with iceberg…blistering and peeling, small heads from which many damage leaves have been removed, and the resulting lightweight cartons. Low yields will continue. Prices extreme, quality poor. Romaine Hearts: Epidermal peeling is also an issue, although to a lesser degree compared to commodity romaine. An occasional misshapen head is present in the pack. Quality issues will continue through March. Prices extreme, quality fair. Green Leaf: Freeze damage present, although not to the extent that iceberg and romaine have been affected. Prices high, quality fair. Broccoli (bunched): The market is trending higher as we near the transition period for the harvest moving from the desert northward to Central California…beginning in mid-March. Prices high, quality good. Pin rot and water damage present in broccoli from Central California. Broccoli (crowns): Priced at a substantial premium compared to bunched broccoli. Prices high, quality good. Cauliflower: The market advanced again this week, with production levels down by 10 percent compared to February 2010. Prices high, quality good. Celery: The market firmed this week, with buyers stepping in at lower price levels. Quality is an issue, with blistering and peeling present in desert celery and pith in Oxnard. Prices high, quality fair. Carrots: Large sized carrots (jumbo, table) continue to be in extremely limited supply due to low yields during the harvest transition from the Southern San Joaquin Valley to the Imperial Valley. This shortage includes carrot sticks and carrot chunks (2 inch, 4 inch). No relief is expected until April. Shippers are unable to fill orders in full. Prices extreme, quality good. Artichokes: The cold winter has slowed plant growth; the size profile is heavy to the smaller sizes (36, 48, large loose)…these sizes offer the best value. Most samples are now frost-free. Prices moderate, quality good. Plentiful supplies on all sizes will become available by April. Asparagus: Prices remain high for late season production in Northern Mexico. Quality good. New crop harvesting in Central California has been set back by recent cold, wet growing conditions. Parsley (curly): Adequate availability, prices moderate, quality good. Parsley (Italian): Adequate availability, prices moderate, quality good. Spinach (bunched): Production beginning to recover…prices high, quality good. Kale (green): Good availability. Prices moderate, quality good. Kale (flowering): Steady availability for growers in the desert districts. Cilantro: Increasing supplies. Prices moderate, quality good. Green Onions: The market is gradually easing with improved weather conditions in Mexico, however planted acreage is below average. A meaningful increase in production is not expected until late March. Prices high, quality good. Leeks: Availability is adequate, prices high, quality good. Green Cabbage: Tight availability, prices high, quality good. Red Cabbage: Adequate availability, prices moderate, quality good. Bok Choy: Adequate supplies, prices high. Napa: Light supplies, prices high. Snow peas: Good availability…prices moderate, quality good. Garlic: Tight supplies, high prices…Reduced imports and poor quality from China. No relief until late summer. Spring Mix: Spring mix availability is gradually improving…growers have been able to re-introduce various red components into the mix. Prices high, quality good. Spinach (baby): Better availability, however occasional allocation still in effect, depending on the shipper. Arugula: Increasing production, adequate availability. Mache: Unavailable…quality poor. Berries Strawberries: Tight availability in the West…the harvest in Central Mexico is winding down and Oxnard continues with modest production volume. Prices high, quality fair. Plentiful availability for late season production in Florida. Raspberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blackberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blueberries: Late season harvest volume in Chile is decreasing…finishing by mid-April. New crop blueberries in Georgia and Florida will begin at that time. Still moderate supplies coming from Mexico. Prices high, quality good. California-Arizona Citrus Navel Oranges: Continued plentiful availability for California Navel oranges…no effects from cold weather or rain thus far. Prices low, quality excellent. Lemons: We are near the end of the season for desert lemons…the primary shipping district is now the San Joaquin Valley, with storage crop inventories for Ventura County growers being replenished for the summer shipping season. Good availability on all sizes, with best values being offered on the large sizes (75, 95, 115). Prices moderate, quality excellent. Limes (Persian): The market for large sizes is slowly easing, with much better availability and favorable prices for the small sizes (230, 250). Growers harvesting limes as early as possible in the growth cycle to take full advantage of current high market. Harvest area transition in Mexico to occur in late March. Prices high-to-extreme, quality good. Grapefruit: Good availability on Desert Rio Red variety in California & Arizona and Texas Rio Star in Texas. Prices low-to-moderate, quality excellent. Cara Cara Oranges: Now in peak season production. Moro Oranges: Production winding down…size profile heavy to 113’s & smaller. Mandarins: Good availability for medium and large sizes (24’s-36’s). Pummelos: Nearing the end of the season…best value on smaller sizes (14-18). Prices moderate, quality good. Minneola Tangelos: Season finished for desert growers…now shipping from Central & Southern California. Prices moderate, quality good. Pineapple: Production is beginning to increase in Costa Rica, Guatemala, Honduras and Panama…good availability is in the forecast for Easter. Mexican pineapples are also available. Melons Cantaloupes: Steady availability, market firm…prices high, quality excellent. Honeydews: Tight availability from Central America…Mexican harvesting getting underway…not enough volume to influence the market. Prices high, quality excellent. Watermelons: Increasing production from growers in the Guadalajara region in Southern Mexico. Prices moderate, quality excellent…both seedless and seeded varieties. Washington Apples and Pears Red Delicious: Good demand; market well supported by exports. Yields very good considering difficult growing conditions during spring and summer 2010. Markets are firm most sizes, expected to remain steady going into spring. Golden Delicious: Good availability, prices moderate. Bosc Pears: Good availability, prices moderate-to-high. D’Anjou Pears: Good availability, prices moderate-to-high. Bartlett Pears: New crop from Chile now available, prices moderate-to-high. Grapes & Soft Fruit Red Seedless Grapes: Supplies will be tight through late March with the transition from Flame seedless variety to Crimson. Prices moderate, quality good. Green Seedless Grapes: Availability increasing for Thompson seedless. Prices moderate, quality good. Kiwi (California): The first shipment of Chilean kiwi is now on the water, arriving in late March. California kiwi will continue to be available in the interim…transition will be smooth. Prices moderate, quality good. Avocados Hass: Calavo reports that the Mexican harvest is 2/3 complete, and the remaining 1/3 must last through July. The California Hass crop is 50 percent smaller compared to 2010. Chilean season is finished. The market continues to push higher on all sizes, with the greatest increases on the 48’s. Prices extreme, quality good. Eastern & Western Vegetables Green Bell Peppers: Limited availability and extreme prices on jumbo and extra large. Best availability on choice grade. Quality fair. Red Bell Peppers: Demand increasing, market firm. Prices moderate, quality good. Cucumbers: Tight supplies, production in Mexico winding down for the remainder of March. Prices high, quality fair. Green Beans: Good availability from growers in Florida and Central America. Prices moderate. Tight availability in Nogales. Prices extreme, quality poor. Eggplant: unavailable in Nogales and Florida. Product availability returning in April. Squash: Zucchini: Tight availability in Florida and Nogales. Prices extreme. Quality fair. Yellow: Plentiful supplies in Florida, adequate in Nogales. Florida: prices low, quality good. Nogales: prices high, quality fair. Tomatoes Round: The effects are now being manifested from the freeze that occurred in Mexico during early February…acreage has been lost and production is on the decline…causing upward pressure in the market. Storage inventories are depleted…the upward price trend will continue. Prices high, quality fair. Roma: Same as round tomatoes. Cherry: Same as round tomatoes. Grape: Same as round tomatoes. Potatoes (Idaho) Russets: Availability has tightened considerably for the US #2 Idaho Russets, with a sharp advance in the market this week. Prices are also on the rise for carton packed, small sized potatoes (80, 90, 100). We can expect to see continued subtle to sharp advances in prices on a weekly basis going forward. Prices high, quality good. Onions (Northwest) Yellow: Onions are in oversupply…Mexican growers in full production, supplying the southwestern and southeastern U.S. Packers of storage crop onions in the Northwest will continue to ship through the month of April. Prices low, quality good. Red: Red onions are in oversupply. Quality good, market low. White: Same as yellow onions. Soybean Futures The soybean complex has traded all over this week. The futures price started higher in response to ideas that U.S. soybeans out of the Pacific Northwest are once again competitive with Brazilian origin for the next few weeks. Surging soybean oil also helps as the idea of manufacturing bio-diesel will become profitable due to surging gasoline prices. The complex sold off sharply in response to the break in corn but managed to recover most of those losses by day's end with the exception of soybean meal. Basis levels for soybeans are mostly steady with the Gulf appearing a bit easier. March beans gain on the spread due to the lack of deliveries against the March contract. Forward spreads within the old crop do little, maybe a bit easier. Spreads within new crop firmed a bit, in part to the effort of new crop beans trying to secure acres for the upcoming season. If the acres are not contracted, beans within the U.S. will continue to tighten making the recent tight years pale in comparison. The technical look for soybeans and soybean meal is a bit bothersome. Soybeans and soybean meal match last Friday's highs and fail to follow through. The price action is suggesting an interim double top of the up flagging efforts from last week's lows. Business is expected to fade in the coming weeks/months as the South American new crop comes on line. This holds true for the soybean oil market as well. Soybean Oil The continued unrest will force drastic market swings such as we have seen in the last two weeks. Export sales continue to be noticeably higher which also contributes to the strong market. Outside markets continue to drive the upward trend seen in the soybean oil market. Look for this market to remain strong with occasional, short lived, small drops. Discuss forward strategy with your oil partner. Mideast/North African Tension, Energies Continued civil unrest in Libya and growing concern over oil supply disruptions sent energies higher. Libyan sources contend that oil production and shipments are down 50%, but industry sources suggest that production is down far more. It is thought that the ships that have been loaded in the last several days have been loaded with inventory accumulated prior to the civil unrest and that new oil is not being received from the oil fields. The Department of Energy released its weekly numbers on Wednesday. Crude Oil supplies were down 400,000 barrels for the week, up 4.7 million from a year ago. Total gasoline stocks dropped by 3.6 million barrels, up 2.8 million barrels from a year ago. Gasoline and oil stocks have been increasing mostly every week and gasoline prices at the pump are still going higher. We continue to believe that energy prices will continue to remain strong and find support on dips as long as civil unrest remains in the Middle East and North Africa. This unrest will have a direct affect on commodities traded daily. As long as this country is in disarray, expect commodities to remain strong.
Seafood News from the Gulf- The area of Federal Waters closed to fishing in the Gulf remains unchanged since February 1st. The current area closed to fishing remains at 1041 square miles. Gulf Shrimp- Market is steady to firm. Black Tiger Shrimp- Market is mixed. Several sizes are listed as firming with the exception of 16-20 and 21-25 Headless Shell On as these are listed as weaker. Inventories are listed as tighter while demand remains good. White Shrimp- Market is firming. 31-35 and smaller are listed as firming because of tighter inventories. Larger sizes are listed as steady. Salmon- Market is steady to firm. Replacement costs are noted as higher. King Crab- Market is firm. Snow Crab- Market is steady but firm. Inventories remain very light with a good demand. Warm Water Lobster Tails- Market is steady. Demand is listed as low. American Lobster Tails- Market is steady. Smaller sizes are reported to have limited supplies. Cod- Market is firm. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firming. Demand is listed as good. Pollock- Market is steady. Inventories are reported as good for a light to moderate demand. Whiting- Market is steady. Even though supplies are reported as very light, demand remains low and are keeping inventories in pace with demand. Domestic Catfish- Market is firm. Inventories remain a concern. Scallops- Market is steady. Inventories remain light with a demand listed as down. Tilapia- Market is steady but firm. Demand is listed as good with replacement costs listed as higher. Dairy Why are dairy prices continuing to rise? Weather issues- Drought in New Zealand has reduced their milk production. Heavy rains in Australia reduced their milk production. Weather issues in South America having impact on Dairy Market. Strong Demand from both Russia and China for dairy products. Low global inventories on dairy products. Higher international cheese prices. Increased global grain prices. Cheese-Market is firm. Pricing continued to climb for both the CME Block and the Barrel markets this week. Both markets are trending well above same time last year and the gap has continued to increase. Reports show that Mozzarella demand has remained strong recently. Butter- Market is firming. Pricing has continued to increase this week as Wednesday saw a sharp increase in market pricing. Pricing remains well above same time last year. Eggs Shell Eggs- Market is soft. Retail demand is listed as poor to fair. Reports show that more advertising is set for next week. Inventories are listed as long. Inventories are up 12% from last week. Egg Products- Market is steady. Beef Market is firm. Live cattle pricing continues to climb. Total beef production for last week was 1.5% lower than previous week. Packers have announced reduced hours for the near future which may lead to even tighter inventories. March is expected to be a tight month on availability. Grilling season is just around the corner and demand should seasonally increase as we get closer to summer. Futures are still showing firmer pricing as the year progresses. Chucks- Market is steady but firm. Rounds- Market is steady but firm. Earlier in the week saw pricing firm across the board while later in the week pricing remained more steady. Loins-Market is steady but firm. As with the rounds pricing advanced earlier this week and held its ground thru the end of the week. Upcoming grilling season is expected to put additional pressure on demand and pricing. Ribs- Market is firming. This market is expected to firm in pricing over the next few weeks. Grinds-Market is softening. Short term pricing has shown signs of weakening. Long term expectations show there could be some strength come back into pricing as we get closer to grilling season. Pork Market is steady. Total pork production was up .9% last week versus the week before and steady with same time last year. Live prices continue to trend higher than same time last year with futures showing pricing higher as we near summer. Exports have eased after the strong demand the past several weeks. Bellies- Market is firm. Report show pricing continuing to remain above last year as we head into the summer months. Hams- Market is steady but firm. Exports have eased but Easter demand is holding pricing in line. Demand is listed as average for this time of the year. Butts- Market has softened. Pricing has softened thru the week. Export demand is down and reports show that pricing could soften over the next few weeks if that demand does not pick back up. Ribs- Market is steady. Loins- Market is firm. Reports show heavy promoting over the next few weeks which should help increase demand. Chicken The markets remain on solid ground. With higher priced proteins, chicken has become an alternative source. High corn prices and transportation costs have also played a part in the market levels we’ve seen this week. WOGs and whole birds are short of full needs, and remain harder to secure. Markets this week have seen daily increases as these items have become tighter. This trend could continue into next week. Whole breast availability is limited and trade at current levels. Boneless and tenders also trade at higher levels as these items are limited in supply. Dark meat trades at steady levels to higher. Leg quarters, legs and thighs are adequate for current needs and are moving at current market levels. Wings are starting to see some interest as market levels dropped the last few weeks. This week though this market has remained steady. Turkey The turkey markets are described as better than seasonal as inquires are better than the norm for the first of March. Overall most items are trading at full market or better. Whole birds have traded at full market or better for end of March into April, but limited or no availability for current ship appears to be available. Fresh and frozen breast meat, thigh meat, drums and wings appear to be the most sought after items on the list. The turkey complex is sitting in a current position that leads most to believe it will remain solid through the spring.
Canned fruits and vegetables As the year progresses things are tightening and beets are an item to watch in canned goods. At this point restrictions have not been placed but movement is being closely monitored and restrictions could come at any time. For canned goods in general fairly well balanced inventories and the coming inflation concerns canners are not offering the kind of deals seen this time last year. Pasta Wheat futures and finished goods demand are the primary drivers of pasta prices. Increases in semolina prices to manufactures are continuing to pressure suppliers to increase prices on finished pasta goods. Frozen Vegetables The talk this week in frozen has been almost in unison across suppliers. Inflation, inflation, inflation. But there is a catch that makes it even worse. For about a year and half pricing for frozen vegetables has been deflated. Suppliers are expecting drastic price increases with the new pack that would bring pricing not just to pre deflation levels but to even higher levels due to increases in nearly all cost inputs. Market Report
Inflation for 2011 Expect 5-7 % inflation over the next 12-18 months for Foodservice as well as Retail. Many global factors driving costs: Weak US Dollar Rising Energy Prices Increased Support for Ethanol – driving corn and feed prices up. High prices offered for Corn , reducing the planting acreage for other products. Strong Global GDP (led by China) Shortfall in World Wheat Production Commodity Speculation Seafood Gulf Shrimp- Market is steady. Inventory on larger sizes remains tight and pricing on the larger sizes is listed as firm. Other sizes are listed as steady but pricing varies from supplier to supplier. Black Tiger Shrimp- Market is steady. White Shrimp- Market is firming. Larger count shrimp are listed as steady. 31-35 and smaller HL/SO are listed as firm with smaller sizes showing additional firming in pricing. Mexican Shrimp- Market is steady. U15 and larger inventories are in tighter supply and pricing is firmer. Warm Water Lobster Tails- Market is steady. North American Lobster Tails- Market is steady to softening. Mid-sized products are listed as weak with pricing varying between suppliers. Small sizes are steady but inventories are tight. Salmon- Market is firming. Inventories are listed as light for the entire category. Demand is reported as good. King Crab- Market is firm. Inventories remain tight and replacement product is listed as very limited. Snow Crab- Market is firm. Inventories remain tight with 5-8’s being reported as being very tight. Alaskan Opilio Crab- Market is firm. Supplies are tight for a good demand. Dungeness Crab- Market is firm. Inventories remain light for an active demand. Pangasius- Market is firming. Reports show that replacement costs continue to rise. Demand is listed as good. Domestic Catfish- Market is firm. Reports show that availability is a concern as demand is outpacing supplies. Tilapia- Market is steady but firm. Scallops- Market is steady but firm. Inventories remain light. Cod- Market is firming. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firmer. Demand is listed as good. Pollock- Market is steady. Whiting- Market is steady. Inventories remain light but are keeping pace with a light demand. Dairy Cheese- Market is firming. The CME markets continued to firm again this week. Pricing is now at its highest point for the year thus far. Demand remains good. Reports show that milk supplies are fairly tight worldwide and are putting additional pressure on the cheese markets. Butter- Market is softening. Butter production is up and is helping to slowly build inventories. Inventories last week increased by another 1.6 million lbs. Total inventories still remain less than half the amount of same time last year(20.4 versus 56.7 million lbs). Eggs Shell Eggs- Market is soft. Total egg inventories increased by another 4% from last week. Retail demand is listed as fair. Foodservice demand is listed as good. Jumbos and Large are listed in good supply. Egg Products- Market is steady. Beef Market is firmer. Live prices pushed higher last week and are now at levels not seen since 2003. Higher grain pricing remains a concern for the protein categories as feed costs are expected to increase. Overall beef production was reported as up just over 2% from previous week. Demand is listed as good. Grinds- Market is steady to softer. Demand remains good and product remains in tight supply. Pricing still remains well above same time last year. Ribs- Market is steady. Loins- Market is steady to firmer. Increased demand is putting additional pressure on the category. Chucks- Market is steady to firmer. Continued increased demand and additional exports continue to put pressure on pricing. Rounds- Market is steady to firmer. Demand is listed as good. Chucks- Market is steady to firmer. Pork Market is firm. Pork production was down last week. Total production was down about 3.3% from previous week. Futures continue to show firm pricing for the category as the year progresses. Bellies- Market is steady but firm. Inventories remain tight with a good demand. Forecasts shows pricing firming over the next few weeks. Reports show that the reason the current market has held steady is that availability is so tight that very little trading is being reported. Hams- Market is firm. Demand is reported as good. Exports continue to be strong and combined with reduced harvests are helping push pricing higher. Loins- Market is firm. Demand is listed as good. Butts- Market is firm. Exports remain very strong. Ribs- Market is steady. Demand is listed as softer. Wheat Wheat futures prices traded lower this week, but basis premium levels are firm to higher, leaving flour prices mostly flat. China’s winter wheat crop received some rain, and their government called supplies adequate; however reliable information about Chinese agricultural production can be difficult to obtain. Forecasts for important wheat growing regions of China and the U.S. are calling for dryer weather through the end of this month. It was thought the U.S. had lost export business to lower-priced competitors, but with the drop in futures prices this trend could be quickly reversed.
Soybean Oil This market has been a rollercoaster this week. Dropping on Thursday after rebounding from losses earlier in the week. The Libyan unrest continues to have an effect on the soybean oil market, as well as, other energy markets. US crude is up more than $4.00 in early trading. Gains in crude oil would normally be supportive for the oilseed markets, but the global political uncertainty taking crude oil higher is also making investors more cautious, causing them to exit some of the riskier agricultural markets. The overall up and down turn of the market this week makes it extremely difficult to book/buy with any certainty. Monitor trends closely and buy to meet immediate needs. Chicken Demand has been mostly basic with the majority of inquires seasonal. In general most inventory levels are in balance with current demand, for the exception of a few items. WOGs and whole birds are one of those items where inventory has become tight, with inquiries holding at market levels. Boneless and tenders are well supported, with tenders trading at full market. Whole breast are steady. Dark meat items such as legs, leg quarters, and thighs are tight with markets levels moving up this week. Wings continue to be weak, with this week’s market reflecting suppliers wanting to clear out some inventory. Turkey Markets are pretty active, more so then what we typically see this time of year. Undertone is strong on most items. Whole birds have seen a slight increase in markets this week as product becomes harder to secure. Raw material demand is active as is both fresh and frozen MST. Wings appear to be trending higher, as tom and hen two joints rate a full steady undertone with supplies less than adequate. Fresh breast meat has been harder to secure with potential of possible market increases. This may also be true for tenders as well. Thigh meat and drums Is limited in current availability.
Dry Beans: The dry market overall continues to see firm pricing. As with other crops, the availability of acreage for planting is affecting dry bean pricing. Pinto and black beans are both expected to continue to firm. Greater than normal export opportunities are present for black beans that are contributing to the price pressure. Imports Limited supply is still the primary concern for imports. Mandarin oranges are especially hard hit as contracts in China are not being fulfilled which puts pressure on products here in the US. with continued demand prices will continue to rise. Frozen Vegetables Weather issues have severely limited the flow of products like okra, broccoli, cauliflower, and asparagus into the US. The availability of acreage for planting of crops in the US is a major concern. Every indication is that with current demand, frozen vegetable pricing will continue to climb. Market Report Produce California Lettuce & Mixed Vegetables Iceberg Lettuce: Growing conditions have improved, however the damage has been done to the iceberg crop, with no rebound in production volume expected through the end of the desert harvest season in late March. Prices will continue at extreme levels and quality will be poor, with heavy damage from epidermal blistering and peeling. Processed Salad: Salad processors are in an extreme deficit supply situation, unable to load trucks in a timely manner, and filling orders only at the 50 percent level. Force Majeure contract price increases continue to escalate. Romaine: The same scenario as exists with iceberg…blistering and peeling, small heads from which many damage leaves have been removed, and the resulting lightweight cartons. Low yields will continue. Prices extreme, quality poor. Romaine Hearts: Epidermal peeling is also an issue, although to a lesser degree compared to commodity romaine. An occasional misshapen head is present in the pack. Quality issues will continue through March. Prices extreme, quality fair. Green Leaf: Freeze damage present, although not to the extent that iceberg and romaine have been affected. Prices high, quality fair. Broccoli (bunched): The market is trending higher as we near the transition period for the harvest moving from the desert northward to Central California…beginning in mid-March. Prices high, quality good. Pin rot and water damage present in broccoli from Central California. Broccoli (crowns): Priced at a substantial premium compared to bunched broccoli. Prices high, quality good. Cauliflower: The market advanced again this week, with production levels down by 10 percent compared to February 2010. Prices high, quality good. Celery: The market firmed this week, with buyers stepping in at lower price levels. Quality is an issue, with blistering and peeling present in desert celery and pith in Oxnard. Prices high, quality fair. Carrots: Large sized carrots (jumbo, table) continue to be in extremely limited supply due to low yields during the harvest transition from the Southern San Joaquin Valley to the Imperial Valley. This shortage includes carrot sticks and carrot chunks (2 inch, 4 inch). No relief is expected until April. Shippers are unable to fill orders in full. Prices extreme, quality good. Artichokes: The cold winter has slowed plant growth; the size profile is heavy to the smaller sizes (36, 48, large loose)…these sizes offer the best value. Most samples are now frost-free. Prices moderate, quality good. Plentiful supplies on all sizes will become available by April. Asparagus: Prices remain high for late season production in Northern Mexico. Quality good. New crop harvesting in Central California has been set back by recent cold, wet growing conditions. Parsley (curly): Adequate availability, prices moderate, quality good. Parsley (Italian): Adequate availability, prices moderate, quality good. Spinach (bunched): Production beginning to recover…prices high, quality good. Kale (green): Good availability. Prices moderate, quality good. Kale (flowering): Steady availability for growers in the desert districts. Cilantro: Increasing supplies. Prices moderate, quality good. Green Onions: The market is gradually easing with improved weather conditions in Mexico, however planted acreage is below average. A meaningful increase in production is not expected until late March. Prices high, quality good. Leeks: Availability is adequate, prices high, quality good. Green Cabbage: Tight availability, prices high, quality good. Red Cabbage: Adequate availability, prices moderate, quality good. Bok Choy: Adequate supplies, prices high. Napa: Light supplies, prices high. Snow peas: Good availability…prices moderate, quality good. Garlic: Tight supplies, high prices…Reduced imports and poor quality from China. No relief until late summer. Spring Mix: Spring mix availability is gradually improving…growers have been able to re-introduce various red components into the mix. Prices high, quality good. Spinach (baby): Better availability, however occasional allocation still in effect, depending on the shipper. Arugula: Increasing production, adequate availability. Mache: Unavailable…quality poor.
Berries Strawberries: Tight availability in the West…the harvest in Central Mexico is winding down and Oxnard continues with modest production volume. Prices high, quality fair. Plentiful availability for late season production in Florida. Raspberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blackberries: Increasing production in Mexico, market easing. Prices high, quality excellent. Blueberries: Late season harvest volume in Chile is decreasing…finishing by mid-April. New crop blueberries in Georgia and Florida will begin at that time. Still moderate supplies coming from Mexico. Prices high, quality good.
California-Arizona Citrus Navel Oranges: Continued plentiful availability for California Navel oranges…no effects from cold weather or rain thus far. Prices low, quality excellent. Lemons: We are near the end of the season for desert lemons…the primary shipping district is now the San Joaquin Valley, with storage crop inventories for Ventura County growers being replenished for the summer shipping season. Good availability on all sizes, with best values being offered on the large sizes (75, 95, 115). Prices moderate, quality excellent. Limes (Persian): The market for large sizes is slowly easing, with much better availability and favorable prices for the small sizes (230, 250). Growers harvesting limes as early as possible in the growth cycle to take full advantage of current high market. Harvest area transition in Mexico to occur in late March. Prices high-to-extreme, quality good. Grapefruit: Good availability on Desert Rio Red variety in California & Arizona and Texas Rio Star in Texas. Prices low-to-moderate, quality excellent. Cara Cara Oranges: Now in peak season production. Moro Oranges: Production winding down…size profile heavy to 113’s & smaller. Mandarins: Good availability for medium and large sizes (24’s-36’s). Pummelos: Nearing the end of the season…best value on smaller sizes (14-18). Prices moderate, quality good. Minneola Tangelos: Season finished for desert growers…now shipping from Central & Southern California. Prices moderate, quality good. Pineapple: Production is beginning to increase in Costa Rica, Guatemala, Honduras and Panama…good availability is in the forecast for Easter. Mexican pineapples are also available.
Melons Cantaloupes: Steady availability, market firm…prices high, quality excellent. Honeydews: Tight availability from Central America…Mexican harvesting getting underway…not enough volume to influence the market. Prices high, quality excellent. Watermelons: Increasing production from growers in the Guadalajara region in Southern Mexico. Prices moderate, quality excellent…both seedless and seeded varieties.
Washington Apples and Pears Red Delicious: Good demand; market well supported by exports. Yields very good considering difficult growing conditions during spring and summer 2010. Markets are firm most sizes, expected to remain steady going into spring. Golden Delicious: Good availability, prices moderate. Bosc Pears: Good availability, prices moderate-to-high. D’Anjou Pears: Good availability, prices moderate-to-high. Bartlett Pears: New crop from Chile now available, prices moderate-to-high.
Grapes & Soft Fruit Red Seedless Grapes: Supplies will be tight through late March with the transition from Flame seedless variety to Crimson. Prices moderate, quality good. Green Seedless Grapes: Availability increasing for Thompson seedless. Prices moderate, quality good. Kiwi (California): The first shipment of Chilean kiwi is now on the water, arriving in late March. California kiwi will continue to be available in the interim…transition will be smooth. Prices moderate, quality good.
Avocados Hass: Calavo reports that the Mexican harvest is 2/3 complete, and the remaining 1/3 must last through July. The California Hass crop is 50 percent smaller compared to 2010. Chilean season is finished. The market continues to push higher on all sizes, with the greatest increases on the 48’s. Prices extreme, quality good.
Eastern & Western Vegetables Green Bell Peppers: Limited availability and extreme prices on jumbo and extra large. Best availability on choice grade. Quality fair. Red Bell Peppers: Demand increasing, market firm. Prices moderate, quality good. Cucumbers: Tight supplies, production in Mexico winding down for the remainder of March. Prices high, quality fair. Green Beans: Good availability from growers in Florida and Central America. Prices moderate. Tight availability in Nogales. Prices extreme, quality poor. Eggplant: unavailable in Nogales and Florida. Product availability returning in April. Squash: Zucchini: Tight availability in Florida and Nogales. Prices extreme. Quality fair. Yellow: Plentiful supplies in Florida, adequate in Nogales. Florida: prices low, quality good. Nogales: prices high, quality fair.
Tomatoes Round: The effects are now being manifested from the freeze that occurred in Mexico during early February…acreage has been lost and production is on the decline…causing upward pressure in the market. Storage inventories are depleted…the upward price trend will continue. Prices high, quality fair. Roma: Same as round tomatoes. Cherry: Same as round tomatoes. Grape: Same as round tomatoes.
Potatoes (Idaho) Russets: Availability has tightened considerably for the US #2 Idaho Russets, with a sharp advance in the market this week. Prices are also on the rise for carton packed, small sized potatoes (80, 90, 100). We can expect to see continued subtle to sharp advances in prices on a weekly basis going forward. Prices high, quality good.
Onions (Northwest) Yellow: Onions are in oversupply…Mexican growers in full production, supplying the southwestern and southeastern U.S. Packers of storage crop onions in the Northwest will continue to ship through the month of April. Prices low, quality good. Red: Red onions are in oversupply. Quality good, market low. White: Same as yellow onions.
Soybean Futures The soybean complex has traded all over this week. The futures price started higher in response to ideas that U.S. soybeans out of the Pacific Northwest are once again competitive with Brazilian origin for the next few weeks. Surging soybean oil also helps as the idea of manufacturing bio-diesel will become profitable due to surging gasoline prices. The complex sold off sharply in response to the break in corn but managed to recover most of those losses by day's end with the exception of soybean meal. Basis levels for soybeans are mostly steady with the Gulf appearing a bit easier. March beans gain on the spread due to the lack of deliveries against the March contract. Forward spreads within the old crop do little, maybe a bit easier. Spreads within new crop firmed a bit, in part to the effort of new crop beans trying to secure acres for the upcoming season. If the acres are not contracted, beans within the U.S. will continue to tighten making the recent tight years pale in comparison. The technical look for soybeans and soybean meal is a bit bothersome. Soybeans and soybean meal match last Friday's highs and fail to follow through. The price action is suggesting an interim double top of the up flagging efforts from last week's lows. Business is expected to fade in the coming weeks/months as the South American new crop comes on line. This holds true for the soybean oil market as well.
Soybean Oil The continued unrest will force drastic market swings such as we have seen in the last two weeks. Export sales continue to be noticeably higher which also contributes to the strong market. Outside markets continue to drive the upward trend seen in the soybean oil market. Look for this market to remain strong with occasional, short lived, small drops. Discuss forward strategy with your oil partner.
Mideast/North African Tension, Energies Continued civil unrest in Libya and growing concern over oil supply disruptions sent energies higher. Libyan sources contend that oil production and shipments are down 50%, but industry sources suggest that production is down far more. It is thought that the ships that have been loaded in the last several days have been loaded with inventory accumulated prior to the civil unrest and that new oil is not being received from the oil fields. The Department of Energy released its weekly numbers on Wednesday. Crude Oil supplies were down 400,000 barrels for the week, up 4.7 million from a year ago. Total gasoline stocks dropped by 3.6 million barrels, up 2.8 million barrels from a year ago. Gasoline and oil stocks have been increasing mostly every week and gasoline prices at the pump are still going higher. We continue to believe that energy prices will continue to remain strong and find support on dips as long as civil unrest remains in the Middle East and North Africa. This unrest will have a direct affect on commodities traded daily. As long as this country is in disarray, expect commodities to remain strong.
Seafood News from the Gulf- The area of Federal Waters closed to fishing in the Gulf remains unchanged since February 1st. The current area closed to fishing remains at 1041 square miles. Gulf Shrimp- Market is steady to firm. Black Tiger Shrimp- Market is mixed. Several sizes are listed as firming with the exception of 16-20 and 21-25 Headless Shell On as these are listed as weaker. Inventories are listed as tighter while demand remains good. White Shrimp- Market is firming. 31-35 and smaller are listed as firming because of tighter inventories. Larger sizes are listed as steady. Salmon- Market is steady to firm. Replacement costs are noted as higher. King Crab- Market is firm. Snow Crab- Market is steady but firm. Inventories remain very light with a good demand. Warm Water Lobster Tails- Market is steady. Demand is listed as low. American Lobster Tails- Market is steady. Smaller sizes are reported to have limited supplies. Cod- Market is firm. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firming. Demand is listed as good. Pollock- Market is steady. Inventories are reported as good for a light to moderate demand. Whiting- Market is steady. Even though supplies are reported as very light, demand remains low and are keeping inventories in pace with demand. Domestic Catfish- Market is firm. Inventories remain a concern. Scallops- Market is steady. Inventories remain light with a demand listed as down. Tilapia- Market is steady but firm. Demand is listed as good with replacement costs listed as higher.
Dairy Why are dairy prices continuing to rise? Weather issues- Drought in New Zealand has reduced their milk production. Heavy rains in Australia reduced their milk production. Weather issues in South America having impact on Dairy Market. Strong Demand from both Russia and China for dairy products. Low global inventories on dairy products. Higher international cheese prices. Increased global grain prices.
Cheese-Market is firm. Pricing continued to climb for both the CME Block and the Barrel markets this week. Both markets are trending well above same time last year and the gap has continued to increase. Reports show that Mozzarella demand has remained strong recently.
Butter- Market is firming. Pricing has continued to increase this week as Wednesday saw a sharp increase in market pricing. Pricing remains well above same time last year.
Eggs Shell Eggs- Market is soft. Retail demand is listed as poor to fair. Reports show that more advertising is set for next week. Inventories are listed as long. Inventories are up 12% from last week. Egg Products- Market is steady.
Beef Market is firm. Live cattle pricing continues to climb. Total beef production for last week was 1.5% lower than previous week. Packers have announced reduced hours for the near future which may lead to even tighter inventories. March is expected to be a tight month on availability. Grilling season is just around the corner and demand should seasonally increase as we get closer to summer. Futures are still showing firmer pricing as the year progresses.
Chucks- Market is steady but firm. Rounds- Market is steady but firm. Earlier in the week saw pricing firm across the board while later in the week pricing remained more steady. Loins-Market is steady but firm. As with the rounds pricing advanced earlier this week and held its ground thru the end of the week. Upcoming grilling season is expected to put additional pressure on demand and pricing. Ribs- Market is firming. This market is expected to firm in pricing over the next few weeks. Grinds-Market is softening. Short term pricing has shown signs of weakening. Long term expectations show there could be some strength come back into pricing as we get closer to grilling season.
Pork Market is steady. Total pork production was up .9% last week versus the week before and steady with same time last year. Live prices continue to trend higher than same time last year with futures showing pricing higher as we near summer. Exports have eased after the strong demand the past several weeks. Bellies- Market is firm. Report show pricing continuing to remain above last year as we head into the summer months. Hams- Market is steady but firm. Exports have eased but Easter demand is holding pricing in line. Demand is listed as average for this time of the year. Butts- Market has softened. Pricing has softened thru the week. Export demand is down and reports show that pricing could soften over the next few weeks if that demand does not pick back up. Ribs- Market is steady. Loins- Market is firm. Reports show heavy promoting over the next few weeks which should help increase demand.
Chicken The markets remain on solid ground. With higher priced proteins, chicken has become an alternative source. High corn prices and transportation costs have also played a part in the market levels we’ve seen this week. WOGs and whole birds are short of full needs, and remain harder to secure. Markets this week have seen daily increases as these items have become tighter. This trend could continue into next week. Whole breast availability is limited and trade at current levels. Boneless and tenders also trade at higher levels as these items are limited in supply. Dark meat trades at steady levels to higher. Leg quarters, legs and thighs are adequate for current needs and are moving at current market levels. Wings are starting to see some interest as market levels dropped the last few weeks. This week though this market has remained steady.
Turkey The turkey markets are described as better than seasonal as inquires are better than the norm for the first of March. Overall most items are trading at full market or better. Whole birds have traded at full market or better for end of March into April, but limited or no availability for current ship appears to be available. Fresh and frozen breast meat, thigh meat, drums and wings appear to be the most sought after items on the list. The turkey complex is sitting in a current position that leads most to believe it will remain solid through the spring.
Canned fruits and vegetables As the year progresses things are tightening and beets are an item to watch in canned goods. At this point restrictions have not been placed but movement is being closely monitored and restrictions could come at any time. For canned goods in general fairly well balanced inventories and the coming inflation concerns canners are not offering the kind of deals seen this time last year.
Pasta Wheat futures and finished goods demand are the primary drivers of pasta prices. Increases in semolina prices to manufactures are continuing to pressure suppliers to increase prices on finished pasta goods.
Frozen Vegetables The talk this week in frozen has been almost in unison across suppliers. Inflation, inflation, inflation. But there is a catch that makes it even worse. For about a year and half pricing for frozen vegetables has been deflated. Suppliers are expecting drastic price increases with the new pack that would bring pricing not just to pre deflation levels but to even higher levels due to increases in nearly all cost inputs.
Market Report
Inflation for 2011
Expect 5-7 % inflation over the next 12-18 months for Foodservice as well as Retail. Many global factors driving costs: Weak US Dollar Rising Energy Prices Increased Support for Ethanol – driving corn and feed prices up. High prices offered for Corn , reducing the planting acreage for other products. Strong Global GDP (led by China) Shortfall in World Wheat Production Commodity Speculation Seafood Gulf Shrimp- Market is steady. Inventory on larger sizes remains tight and pricing on the larger sizes is listed as firm. Other sizes are listed as steady but pricing varies from supplier to supplier. Black Tiger Shrimp- Market is steady. White Shrimp- Market is firming. Larger count shrimp are listed as steady. 31-35 and smaller HL/SO are listed as firm with smaller sizes showing additional firming in pricing. Mexican Shrimp- Market is steady. U15 and larger inventories are in tighter supply and pricing is firmer. Warm Water Lobster Tails- Market is steady. North American Lobster Tails- Market is steady to softening. Mid-sized products are listed as weak with pricing varying between suppliers. Small sizes are steady but inventories are tight. Salmon- Market is firming. Inventories are listed as light for the entire category. Demand is reported as good. King Crab- Market is firm. Inventories remain tight and replacement product is listed as very limited. Snow Crab- Market is firm. Inventories remain tight with 5-8’s being reported as being very tight. Alaskan Opilio Crab- Market is firm. Supplies are tight for a good demand. Dungeness Crab- Market is firm. Inventories remain light for an active demand. Pangasius- Market is firming. Reports show that replacement costs continue to rise. Demand is listed as good. Domestic Catfish- Market is firm. Reports show that availability is a concern as demand is outpacing supplies. Tilapia- Market is steady but firm. Scallops- Market is steady but firm. Inventories remain light. Cod- Market is firming. Inventories remain light for a good demand. Flounder- Market is steady. Haddock- Market is firmer. Demand is listed as good. Pollock- Market is steady. Whiting- Market is steady. Inventories remain light but are keeping pace with a light demand. Dairy Cheese- Market is firming. The CME markets continued to firm again this week. Pricing is now at its highest point for the year thus far. Demand remains good. Reports show that milk supplies are fairly tight worldwide and are putting additional pressure on the cheese markets. Butter- Market is softening. Butter production is up and is helping to slowly build inventories. Inventories last week increased by another 1.6 million lbs. Total inventories still remain less than half the amount of same time last year(20.4 versus 56.7 million lbs). Eggs Shell Eggs- Market is soft. Total egg inventories increased by another 4% from last week. Retail demand is listed as fair. Foodservice demand is listed as good. Jumbos and Large are listed in good supply. Egg Products- Market is steady. Beef Market is firmer. Live prices pushed higher last week and are now at levels not seen since 2003. Higher grain pricing remains a concern for the protein categories as feed costs are expected to increase. Overall beef production was reported as up just over 2% from previous week. Demand is listed as good. Grinds- Market is steady to softer. Demand remains good and product remains in tight supply. Pricing still remains well above same time last year. Ribs- Market is steady. Loins- Market is steady to firmer. Increased demand is putting additional pressure on the category. Chucks- Market is steady to firmer. Continued increased demand and additional exports continue to put pressure on pricing. Rounds- Market is steady to firmer. Demand is listed as good. Chucks- Market is steady to firmer. Pork Market is firm. Pork production was down last week. Total production was down about 3.3% from previous week. Futures continue to show firm pricing for the category as the year progresses. Bellies- Market is steady but firm. Inventories remain tight with a good demand. Forecasts shows pricing firming over the next few weeks. Reports show that the reason the current market has held steady is that availability is so tight that very little trading is being reported. Hams- Market is firm. Demand is reported as good. Exports continue to be strong and combined with reduced harvests are helping push pricing higher. Loins- Market is firm. Demand is listed as good. Butts- Market is firm. Exports remain very strong. Ribs- Market is steady. Demand is listed as softer. Wheat Wheat futures prices traded lower this week, but basis premium levels are firm to higher, leaving flour prices mostly flat. China’s winter wheat crop received some rain, and their government called supplies adequate; however reliable information about Chinese agricultural production can be difficult to obtain. Forecasts for important wheat growing regions of China and the U.S. are calling for dryer weather through the end of this month. It was thought the U.S. had lost export business to lower-priced competitors, but with the drop in futures prices this trend could be quickly reversed.
Soybean Oil This market has been a rollercoaster this week. Dropping on Thursday after rebounding from losses earlier in the week. The Libyan unrest continues to have an effect on the soybean oil market, as well as, other energy markets. US crude is up more than $4.00 in early trading. Gains in crude oil would normally be supportive for the oilseed markets, but the global political uncertainty taking crude oil higher is also making investors more cautious, causing them to exit some of the riskier agricultural markets. The overall up and down turn of the market this week makes it extremely difficult to book/buy with any certainty. Monitor trends closely and buy to meet immediate needs. Chicken Demand has been mostly basic with the majority of inquires seasonal. In general most inventory levels are in balance with current demand, for the exception of a few items. WOGs and whole birds are one of those items where inventory has become tight, with inquiries holding at market levels. Boneless and tenders are well supported, with tenders trading at full market. Whole breast are steady. Dark meat items such as legs, leg quarters, and thighs are tight with markets levels moving up this week. Wings continue to be weak, with this week’s market reflecting suppliers wanting to clear out some inventory. Turkey Markets are pretty active, more so then what we typically see this time of year. Undertone is strong on most items. Whole birds have seen a slight increase in markets this week as product becomes harder to secure. Raw material demand is active as is both fresh and frozen MST. Wings appear to be trending higher, as tom and hen two joints rate a full steady undertone with supplies less than adequate. Fresh breast meat has been harder to secure with potential of possible market increases. This may also be true for tenders as well. Thigh meat and drums Is limited in current availability.
Dry Beans: The dry market overall continues to see firm pricing. As with other crops, the availability of acreage for planting is affecting dry bean pricing. Pinto and black beans are both expected to continue to firm. Greater than normal export opportunities are present for black beans that are contributing to the price pressure. Imports Limited supply is still the primary concern for imports. Mandarin oranges are especially hard hit as contracts in China are not being fulfilled which puts pressure on products here in the US. with continued demand prices will continue to rise. Frozen Vegetables Weather issues have severely limited the flow of products like okra, broccoli, cauliflower, and asparagus into the US. The availability of acreage for planting of crops in the US is a major concern. Every indication is that with current demand, frozen vegetable pricing will continue to climb.
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