Lighter hog weights and strong demand are supporting the cash hog market which is rated full steady to firm.

Just about all cuts of pork are forecasting upward until Labor Day when we should see a break. Hams are firm with renewed export and domestic interest. Bellies should continue to rise through early September. Legs are projecting up for the rest of the month and then they should pull steady in early September. Bone in sirloins, Bone In and boneless loins should follow the same pattern as legs.   Spareribs, boneless sirloins and Boston butts are projecting up until the holiday and then they should fall off. Cushion is steady and fresh trim should come off as inventories are reported to be building.

Supplier margins were up again this week. Production should hold. Prices should be firm.

 

The market was projected to hold firm until Labor Day except for grinds, as of yesterday. Live was supposed to establish slightly higher than last week. Live trade established on Thursday at double the expected increase or better so all bets are off and it’s time to re-write the old market report. Many suppliers have pulled price list as of this morning in lieu of a much higher cost increase than they had anticipated. A lot of detail is yet to service but suffice it to say the market will move up until Labor Day overall. If you don’t have an order placed you will pay more. If you locked down some product then you are sitting on a good investment.

The market will be up until Labor Day.

 

 

The soy complex has been weak this week, with soy oil being the weakest link.  Oilshare has continued to dwindle and is back below 40 points.  Continued up and down outside markets, weather concerns, and increased exports continue to affect this market.  Soy oil will continue to feel the pressure of the outside influences and the market will have broad swings.  Continue to watch this market closely, it has fluctuated wildly this week.  Depending on weather conditions in the plains area next week, we could see soy oil rise again.  Purchase for current needs.

 

 

 

U.S. wheat futures are climbing in a rebound from a sharp sell-off during the past two weeks. The markets gave back nearly $2 after approaching the highest prices in almost two years in early August. Prices had rallied on worries about a severe drought that slashed production in countries of former Soviet Union and prompted Russia to ban grain exports.   There has been a huge correction in the market, a lot of the problems that caused the run have not disappeared, however.   Traders fear persistent dryness will prevent planting of Russia's next wheat crop in September. Commodity funds have bought an estimated 4,000 contracts at CBOT.

 

Canola contracts on the ICE Futures Canada platform were trading at steady to lower price levels at midday with the downward price slide being encouraged by the declines in the CBOT soybean complex and the lack of willing buyers.  Speculative liquidation of positions ahead of Friday's Statistics Canada crop production report contributed to the bearish price sentiment in canola.  Declines in canola were also linked to the advancing harvest of the crop and the absence of frost so far.  Talk of better than expected yield potential for US soybeans, based on early crop tour results, also was an undermining price influence on canola.  The continued up trend in the value of the Canadian dollar also contributed to the weakness seen in canola.   Some underlying support came from scale-down pricing of old export business and some minor domestic crusher demand.   Farmer deliveries were on the light side, and also helped to slow the downward price slide.

 

Info on the Gulf-The amount of Federal Waters closed remains unchanged since last week’s report.  More State Waters continue to open to shrimping and will help to continue to build inventories.

Gulf Shrimp- Market is soft.  Demand is listed a poor and the new season will continue to add to current inventory.

Black Tiger Shrimp- Market is steady.  Reports show demand as steady and inventories starting to improve.

White Shrimp- Market is steady.  Demand for smaller count shrimp is being reported as improved.

Oysters- Market remains firm.  Supply remains very short.  Many processers list their business as down by over 50%.

Mahi- Market is firm.  Inventories are listed as tight.

Halibut- Market is steady.  Inventories appear to be keeping up with current demand.

Pollock- Market is steady.  Demand is listed as down while inventories remain steady.

Whiting- Market is steady.  Replacement costs have been listed as lower while demand has been down giving relief to this product.  Some reports show this market as softening.

Salmon-Chilean market is listed as softening.  Inventories are steady for a dull demand.  European market is listed as steady.  Inventories a barely meeting the moderate demand.  Wild Salmon market is listed as firm on Coho, Sockeye, and Kings.  Pinks and Chums remain steady.

Snow Crab- Market remains firm.  Inventories remain tight for an active demand.

Dungeness Crab- Market is firm.  Inventories are listed as tight for a moderate demand.

King Crab- Market remains firm.  Inventories remain tight for a steady demand.

Scallops- Market is firm.  Supply remains limited.

Cheese- Market is firm.  The hot weather as well as schools coming back into session continue to strain the market.  Current cheese production is listed as down and inventory in storage is having to be used to fulfill current demand.  Seasonal trends point towards pricing staying firm until the weather starts to cool.

 

 

 

Market is very firm.  As previously mentioned, solids in the milk are lower this year and less than was expected.  This combined with the hot weather and already low inventory levels continues to drive pricing higher.  Several reports show this market staying firm.

 

Shell eggs- Market is very firm.  Retail demand is listed as high partially as a result of the recall this week and several areas needing to be restocked.  Inventory on medium thru jumbo is listed as very tight.  Prices have risen sharply as demand is greater than the current supply.  Total inventories were down by 4% to start the week and the recall has made a large impact this week.

 

Egg products- Market is steady.  Demand on most items has held pricing in line this week while liquid whole have inched up thru the week.  Reports show concern on sourcing of finished products and that some are unwilling to except product that was diverted from raw materials this week.  The concerns on the recall can trickle into this category and have some effect on the market during the upcoming days.

 

 

The markets remain tight on  supply side as inventory is short particularity white meat.   This is resulting in a very firm market for these items. Markets continued advancing through the week as white meat items became harder to secure.

WOGs and whole birds trade at current market levels.  Larger sized birds are harder to secure.  Whole breasts trade at current market or better. Boneless breasts and tenders are short of full needs and are trading at premiums in some instances.  Chunk and trim meats are limited in supplyand are rated as firm.

Dark meat overall is steady.  Thigh meat and leg meat are gaining a little strength.  The industry still awaits the Russian export market to open. Wings in general are getting more interest, with some inquiries gearing up for football season.   

 

 

A record pack year and the slow economy  helped to create carry over for this year for many canned vegetables. Deals are available but it may be very short lived.  The fields this pack year are so far being adversely weather affected and expectations are for less than budget packs. These smaller packs being reported are coming from the harvesting of fewer planted acres than the previous year. Less acres coupled with smaller than anticipated yields results in far less product available than the previous year. Should the economy rebound for foodservice, canners’ inventories will become depleted and prices will have to increase. As of now there is every indication that prices for finished goods will increase. The items of most concern today are peas, green beans, and tomatoes but so far it is very likely that other items will be affected as well.

 

Tuna prices are beginning to ease slightly. Reports from a major tuna processor of expectations of lower prices, the near completion of the fishing ban, and the merger of two major tuna players are pointing toward lower tuna pricing after the start of the  new year.

 

Iceberg & Leaf:  The availability situation has improved for commodity packed romaine, however romaine hearts continue to be in tight supply for most shippers.  Quality is improving, however traces of fringe burn and mildew are present.  The past six weeks of ongoing cool weather conditions that resulted in a drop in romaine supply have now caused a drop in production for iceberg and green leaf.  Availability is tight and prices are on the rise, as growers are well ahead of harvest schedules…iceberg quality is very good, with medium head size and an average carton weight. 

 

Indications are that the recent oversupply of bunched broccoli, and especially broccoli crowns, is beginning to disappear…we are in the early stages of prices firming.  Cauliflower is in plentiful supply, along with all sizes of celery.  Carrots are in peak harvest in the San Joaquin Valley, Oregon and Washington.

 

Asparagus has been in extremely tight supply for the past six weeks, due to unseasonably cold weather in Peru...the coldest winter on record in South America.  Peru is the dominant supply region for much of the year, and production volume has been far below average.    The asparagus season in Central Mexico will be finished by mid September, leaving Peru as the only growing region going until early 2011.  That being said, Peruvian asparagus production is expected to increase soon, possibly dramatically, as late winter growing conditions improve.  Asparagus fields in Peru have been prepared to transition to full production levels as soon as a warming trend occurs.  We are beginning to see some easing in prices, and a substantial decline is expected by mid September.

 

Green onions are in plentiful supply, along with leeks, Italian parsley, and kale.  Growing conditions have resulted in continued tight availability on curly parsley, bunched spinach, bok choy and napa.  California snow pea volume is on the decline and prices are moving higher.  Good availability on spring mix, baby spinach and arugula.

 

Strawberries are in better supply, following the recent shortage caused by ongoing cool weather in the coastal regions of Central California.  Quality has improved and grower-shippers are now able to fill orders in full; growing conditions are expected to improve with the approach of fall.  Prices remain firm for the premium labels.  Production levels have seen a moderate increase for California raspberries, however blackberry availability has tightened, with a wide range in quality, size and appearance.  Blueberry production is on the decline in the Pacific Northwest and in Michigan…this trend will continue until new crop blueberries from Chile and Argentina become available in October.   

 

Demand has increased for California Valencia oranges as school districts return to active session following summer holiday.  Most affected is the availability on the small sized 138-count.  The crop size profile is favors the mid-range sizes (88’s, 113’s)…prices have firmed.  Volume price discounts are available on the large sizes (48’s, 56’s, 72’s).  Navel oranges from Chile are available for shipment from the East Coast and West, although prices are higher compared to California Valencias.  California lemons are available in all sizes, along with excellent quality imports from Chile…Mexican lemons are now available also, with limited early season production volume on the small sized 165’s 7 200’s.  We have seen the highs for the year on lemon prices; new crop harvesting will begin in Coachella next week, followed by Western Arizona in early September. 

 

California Summer grapefruit is the predominant variety; interior coloring is characterized by a moderate red blush.  Growers are waiting for a warming trend to boost color intensity.  Pineapple availability has improved slightly, with increasing supply expected in late September.  A mild hurricane season in Mexico thus far has contributed to good availability on limes particularly for the large sizes, which are now priced at a slight discount to the smaller sized limes.   

 

The oversupply situation continues for large sized cantaloupes (9’s) and honeydews (4’s, 5’s).  Various growers are declining in volume, a trend that is expected to carry over next week to the largest grower shippers.  Lower production volume, combined with increasing ad promotions by the retail chain stores is expected to provide some stability to the current depressed market.  Steady availability and price on watermelons in California and numerous regional growing areas.

 

New crop Gala apples are now available in Northern California.  Red Delicious and Grannysmith varieties are still available from controlled atmosphere storage facilities in Eastern Washington.  New crop California Bartlett pears are in good supply, with the smaller sizes (100’s, 110’s, 120’s). 

 

Thompson seedless grapes are in plentiful supply.  For red seedless grapes, growers are in transition from Flame to Crimson variety.  Large sized Flames command a substantial price premium compared to medium.  Black seedless grapes are in good supply, while the Red Globe harvest is just getting underway.  Peaches, nectarines, red & black plums are all in good supply.  We have adequate availability on late season Chilean kiwi, with a smooth transition to new crop California kiwi expected in October.

 

Demand is strong for the popular sizes of California Hass (48’s, 60’s) and prices are trending higher.  Larger sizes are in limited availability, mostly old crop Mexican Hass.  Quality and taste are outstanding for California Hass, oil content and ripening characteristics are at peak season.  New crop Hass from Chile will be available in volume in September.