Industry analysts expect that more increases for all types of resin products will come in February even though most producers took increases in the last 3-4 weeks.  One major US manufacturer of food-film and plastic deli containers announced an 8% increase one week only to issue another announcement the next which superseded the first and changed it from an 8% to a 12% price increase on finished products.  Pallet wraps, poly bags, trash liners and plastic food containers are all included in the recent price increases across the country.

 

The global demand for foil continues to firm up as foil prices increased approximately 7-9%  in late January and early February.   Recent extreme cold weather in China caused electrical power cutbacks at 2 aluminum ingot plants which resulted in reduced production and added further price pressure.

 

The demand and pricing of latex-rubber, used to make disposable gloves, etc., continues to rise causing some manufacturers to scramble to find sufficient raw material to meet their needs.  Experts are expecting this trend to continue for the next several months.

Canola contracts on the ICE Futures Canada platform were trading at slightly higher price levels at midday Thursday with some of the upward price movement associated with the advances seen in CBOT soyoil and on talk of fresh demand coming forward for canola.  Additional strength in canola  came from fresh export demand.   A couple of cargoes of Canadian canola were sold to Mexico late last week and other canola export business was being concluded this week.

CBOT soyoil futures found support from the Environmental Protection Agency's announcement on mandates for biofuel. The mandate for biodiesel is seen as favorable for soyoil used for biodiesel and should lead to strength in soyoil product value share.   Traders are encouraged by the market's ability to maintain support at the $9.00 per bushel level, with supportive outlooks for soyoil use in biodiesel production providing some underlying strength. Soy products are mixed, with soyoil advancing on adjustments in the soyoil/soymeal spread relationship. March soybeans are 2 cents lower at $9.06 a bushel, March soyoil is 2 points higher at 36.92 cents per pound, and March soymeal is $0.90 lower at $268.00 per short ton.

For canned tomatoes it is business as usual.  After an exceptional crop, one of the largest in history, and an excellent pack for the canners there are no real issues in terms of supply and demand. At the present time California farmers and processers are beginning the negotiations for the price of the raw product that is to be planted for the summer harvest. So far the reported offering price of .62/ ton is nowhere near last year’s .80/ton.  At this pricing level farmers would not be likely to plant as many acres of tomatoes which in turn could cut the amount of tomatoes available for canning.  It is still very early in the process but if canners have an excess carry- over stock there is a good chance that the per ton price requirement of the farmers will not be met and prices through the distribution channel will be effected.

 

Retail demand is slowing. The larger sizes are becoming increasingly available. Completed trades are limited and usually at discount. Mediums and smalls are mixed . Eggs for breaking are being acquired below the low side. Liquid whites are attracting the most interest in the egg product segment. Trades here are at the midpoint of current ranges. Liquid whole egg is under downward pressure. The frozen and dried segments are quiet as buyers and sellers are watching developments in the shell egg segment.The market is weak.

 

 

The asking price for live cattle was $87-$88 cwt. this week. Bids at $82 and $84.00 were unanswered on Wednesday. The call is for a steady live market this week. Last week live cattle traded $83-$86 cwt. Demand is hitting the pre-lent doldrums early this year. Loins and Ribs are holding firm to slightly up. The round complex has slipped Knuckles and eye of round were selling at slight discounts on Wednesday. Insides were on prompt. Grinds have come of some with demand dipping and pipe lines being full again. Brisket is following the typical up pattern with Saint Patty’s day coming. The U.S.D.A. is running $.12-$13 above this time last year on choice briskets.

The choice /select spread was at $2.38 on Wednesday. Packers margins are down to $7.70 per head. This is traditionally the low demand time of the year for beef and we are seeing it right now.

     

 

Demand for pork is light also. Bone in loins are plentiful again. Boneless loins have seen a slip in demand from Russia and prices are settling accordingly. Bone in butts are still being supported by export demand and are trending upwards.. Back ribs are steady to strong. Sirloins are now rated a value with Canadian interest waning. The ham market is steady to slightly firmer. Bellies are rated steady. Trimmings are reported to be lightly traded and at a discount. Spareribs are steady.  Packer margins are reported at $7.20 per head at these levels.

 

The block moved downward slightly this week opening at $1.51 on Monday, slipping to $1.5025 on Tuesday and down to $1.4975 on Wednesday. The Monday through Wednesday average was at $1.5033 which was down $.0097 from last week’s closing average of $1.5130. The barrel opened at $1.48 on Monday, slipped to $1.4725 on Tuesday and held there on Wednesday. The Monday through Wednesday average was at $1.4750 which was $.032 below last week’s closing average of $1.5070. Butter opened at $1.3250 on Monday fell to $1.31 on Tuesday and bounced back to $1.3450 on Wednesday. This volatile pattern produces a Monday through Wednesday average of $1.3267 which was $.0523 below last week’s closing average of $1.3790. Butter appears to be following the typical historical pattern for this time of year. Non Fat Dry Milk grade A opened at $1.19 on Monday and held there through Wednesday. This was $.02 below last week’s closing average of $1.21. Non Fat Dry Milk extra grade opened at $1.24 on Monday and held there through Wednesday. This was $.012 below last week’s closing average of $1.2520.

 

Trade activity started this week as mixed.  Both foodservice and retail needs picked up near weeks end as we approach the big game on Sunday. 

Whole birds and WOGs appear to have settled this week with markets remaining steady the last few days.

Whole breasts and breast front are well cleared.

Dark meat items are a little unsettled as the industry waits for clarification on Russian export requirements.

Wings are rated as about steady and have settled after some recent market adjustments.

Interest on tenders has seen additional interest with markets holding steady.