Market trends For week ending June 10, 2022 - Performance Foodservice
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
market trends For week ending June 10, 2022
market trends
WEek ending June 10, 2022
Produce
MARKET OVERVIEW
We continue to see improving volume on mid-sized to small
MARKET ALERT
limes; however, the larger sizes will continue to be short and • Avocados – ESCALATED
are expected to continue through June. Tomato volume will • Bell Pepper – ESCALATED
be light out of the east as the Florida season is ending, and • Cabbage – ESCALATED
• Carrots (Jumbo) – ESCALATED
we are seeing light harvesting out of South Carolina this week.
• Celery – ESCALATED
Out west, light demand and slowly improving volume continue
• Garlic – EXTREME
to keep inventories and FOB prices manageable, but we are • Ginger – EXTREME
seeing a wide range in quality. On the veg side of things, new • Green Beans (West) - ESCALTED
crop production in South Georgia has ramped up. Good volume • Chili Peppers – ESCALATED
is available on cucumbers, cabbage, soft squash, and bell • Italian Parsley - ESCALATED
pepper. Corn quality is very nice this week, and the green bean • Limes (110’s & 150’s) – ESCALATED
market is split with high prices and short supply in the west • Mushrooms – ESCALATED
while new crop is ramping up out of South Georgia. • Oranges - ESCALATED
• Tomatoes (Round & Roma) - ESCALATED
FRUITS & VEGETABLES WATCH LIST
Apples & Pears • Snow Peas
Apples: West coast new crop apples are being packed; however • Sugar Snap Peas
small sizes remain tight. East coast apples are available as well.
Market price remains firm on small fruit as local schools take most
of the volume. Grapes
Pears: This year’s pear crop was down significantly, with mostly Deals are being made on the remaining offshore
larger fruit available. Growers are trying to drag out supply as best inventories while we see new crop volume crossing from
as possible until new crop starts next August. Mexico. Overall, demand has been light.
Avocados Pineapples
ESCALATED: Last week volume harvested for the U.S. was under Pineapple availability continues to be okay. The size profile
48 million pounds. In preparation for Holiday ads, volume from all is trending to size 5 and 6cts, and availability on 7cts
origins ramped up a bit, which has left the U.S. inventory at around remains limited.
53 million pounds. Mexico is approximately 62% of the inventory,
California about 27%, Peru a little over 9%, and Colombia just
under 2%. Available orchards continue to decrease, which seems
to be holding on to the strong field pricing. Estimated projections
report that Mexico should supply approximately 30 million pounds
weekly to the U.S. market through the remainder of the current
season (end of June). The Flora Loca crops are expected to be
released to harvest by July 4th, pending dry matter levels. We are
hearing the summer crop is expected to be larger compared to
the year prior. We expect the summer crop to favor the 60 counts
and smaller, with a good supply of 48 counts and a limited supply
of 40s and larger at the beginning of the season. California harvest
volume continues to be around 2 million pounds per day. The size
curve favors 48 and 60 counts, with limited availability on large
sizes. We have passed the halfway point of the season.
Bananas
Steady volume and good quality available. However, we are seeing
firm pricing this quarter due to record-high fuel prices.
2
market trends
WEek ending June 10, 2022
Produce (continued)
SALINAS, CA FORECAST
Raspberries
Mexico continues to downtrend and will do so until the end of
TRANSPORTATION June. Additionally, Central Mexico has seen higher decreasing
After watching rates drop for almost two months, at yields due to quality issues. Baja is in peak season and will
the end of May we experienced an uptick in rates start a downtrend in the next 5-7 days. The U.S. regions will
as expected. Several factors such as month-end, continue to see uptrends which will help alleviate the lower
Memorial Day, and the beginning of summer are volumes out of Mexico.
the obvious explanations for capacity tightening up
over the last week or so. We also saw contracted Strawberries
carrier rejections rise during the 2nd and 3rd weeks Due to warmer weather, we are seeing growers reach
of May- which is a sign of the market tightening peak volume and expect this to continue for the next few
up and causing more truckload shipments to hit weeks. Quality out of Salinas, Watsonville and Santa Maria is
the spot market. As we enter the final month of exceptional and looks to continue.
Q2, we anticipate rates to continue to spike as
shippers push to make their quotas and fully stock
warehouses for the busier warmer months to
come, as well as preparing for the 4th of July. Fuel
continues to be a sticking point as carriers push
for higher rates, citing the continuing exponential
rise in operating costs. Expect to see the same
trend of loads going south being somewhat easier
to move, and anything coming out of the south or
areas near ports to be difficult / more expensive to
get covered.
BERRIES
Blackberries
Central Mexico yields are lower than anticipated, and the
season will likely conclude by mid-June. The U.S. will be the
main producing region through June. North Carolina has
begun, and its season will be in peak production in the next
3-4 weeks.
Blueberries
The San Joaquin Valley is in peak volumes and will continue
over the next week. Baja is past its peak and will begin to
see decreasing volumes over the next several weeks. North
Carolina production continues to ramp up and should be in
peak season in the next 3-5 days. Quality is good with minor
defects.
3
market trends
WEek ending June 10, 2022
Produce (continued)
CALIFORNIA CITRUS WEST COAST LETTUCE
Grapefruit Butter Lettuce
Ruby grapefruit is now available. Size is peaking on 32s, and Steady volume with overall very good quality, and markets
larger fancy and all small sizes 36s and smaller are tight. Texas remain active at steady prices.
is expected to start very late.
Green Leaf
Imports/Specialties Production in Salinas is steady with very good quality, and
Blood oranges are available in good supply. Imported markets are stable with overall good demand.
clementines will be available soon.
Iceberg
Lemons Weather has been ideal for growing, so we are seeing good
Lemons are in full swing, and quality has been good. Best supplies and good quality. Market is slightly lower than last
buys are on 95-140F/Ch. Argentine lemons will be arriving by week, although overall demand remains very good.
next week on the east and west coasts.
Red Leaf
Limes Production in Salinas is steady with very good quality. The
ESCALATED: (150 counts and larger) The volume will continue market is stable with overall good demand.
improving on small limes; however, the crop is not sizing up.
Growers are optimistic we should see a much-improved size Romaine and Romaine Hearts
distribution by the middle of June. With this update, we expect Quality is very good with just some very light windburn. Overall
larger-sized fruit to be an issue and ask to be flexible on sizes demand is good with a slightly better demand for hearts. Market
until we see an improvement in volume on large-sized fruit. on romaine 24ct is slightly lower, and romaine hearts remain
steady.
Oranges
ESCALATED: Small oranges remain fairly tight, with market
pricing in the low $20’s for choice grade. Few navels remain, EASTERN & WESTERN VEGETABLES
but many growers are on to Valencias. Size structure peaking Bell Peppers
56/72, with about 75% being fancy grade. ESCALATED Markets are active on all colors. Green bell
pepper production out of Georgia is lagging while Florida
is coming to their season’s end. The demand, particularly
on off-grade products, is still strong, and it is exceeding the
available supplies. The season out of Mexico has come to an
end, leaving Coachella as a primary source of bell peppers
out West until Bakersfield starts in the next couple of weeks.
We’ll be in active markets for another two to three weeks at a
minimum.
Eggplant
Still some lingering volume remaining in Florida, but the
majority of production has moved to South Georgia, where we
see good volume and quality on the first picks. Coachella is
about one week out from production.
French Beans
Out of the west, quality and production levels remain fair as
labor continues to be a challenge. Guatemalan production
continues to be excellent, but rain may affect shelf life in the
coming weeks.
4
market trends
WEek ending June 10, 2022
Produce (continued)
Green Beans Pickles
ESCALATED: Mexico is winding down, and Coachella is We are seeing stable volume out of South Florida this week as
already wrapped up. There are few stragglers, but with less well.
acreage planted, the season closed sooner than expected,
and we should transition to Fresno and the coast over the next Cucumbers
ten days. In the east, we are seeing stronger numbers out of SLICER: Florida supply will be wrapping up this week. South
South Georgia, and Florida is done for the season. Georgia is seeing strong productions and outstanding quality.
Volume and quality crossing through McAllen and Nogales was
Jalapenos/Chili Peppers lighter this week and driving FOB prices higher in the west.
ESCALATED: Plant City has plenty of Cubanelles and good ENGLISH: Good quality and supply available out of Mexico
volumes of jalapenos, but the supply is very light on poblanos and Canada, as well as afew crossings at Otay as well.
and serranos. They should continue to work fields into June,
as quality and distribution allow. Georgia is on deck for the Zucchini/Yellow Squash
chili pepper game, and we’ve already seen jalapenos get Lighter production numbers coupled with steady demand are
started in a light way. Over the next two weeks, Georgia farms keeping the market pricing on yellow squash firm. Production
will branch out to include almost all the mainstream chilies numbers on zucchini have improved, bringing on a slight
except for tomatillos. From there, we’ll see regional pockets of weakness in the market pricing. Reported quality out of
supply in late June/early July. FOBs are a few dollars lower on Georgia and California has been good.
jalapenos and poblanos but are holding steady on Cubanelles.
HERBS
Mini Sweet Peppers Rain continues in Colombia, causing quality issues and some
Good supply and quality available. shortages. Expect shelf life and availability on specialty varieties
to vary.
MELONS
Cantaloupe
Cantaloupe production has started to increase as growers
moved into the holiday weekend. As is typical for the desert
region, sizing has been primarily larger fruit 9cts and 9 jumbos
which will most likely continue being the trend in the short term.
Early quality from Arizona has been solid. We have good sizing,
and cantaloupes also have a nice shell color with good internal
quality.
Honeydew
Honeydew availability is very short. Domestic honeydews
production is limited as few dews are grown from the desert
for various reasons. Some areas are susceptible to whitefly
while others are prone to higher winds during the growing
period, which negatively affects the external quality, so growers
either go with cantaloupe or other commodities. Because
of this, Mexican production crossing through Nogales will
be heavily relied upon over the next 2-3 weeks. Currently,
Mexican production is also limited. The current sizing profile for
the honeydews has been leaning more to the 6 and 8 cts, with
larger fruit being scarce.
5
market trends
WEek ending June 10, 2022
Produce (continued)
Watermelon Broccoli/Broccoli Florets
Watermelons are the king of summer melons and are in full Market continues steady with very good quality.
swing shipping out of several Southern US states. Currently,
east coast watermelons are finishing in southern and central Brussels Sprouts
Florida and are beginning to harvest in north Florida. Southern We will continue to see lighter supplies for the coming week
Texas is harvesting as well, and as the weeks progress, Texas with very strong demand, and prices are higher.
will also move north through the state. Mexico is shipping
melons into both McAllen, Texas, and Nogales but will slow Carrots
down as we transition into further north regions. With the ESCALATED: Current demand exceeds predicted supply while
holiday pull finished, we have seen pricing across the board lower than average yields caused by cold, wet weather has
soften as demand is not keeping up with supply. Georgia has limited availability. Shippers continue to struggle with labor due
been extremely hot, which is pushing that crop ahead and will to COVID and not having enough workers show up daily to
likely create even a larger overlap in supplies. It is likely we will pack carrots.
see pricing soft through the next 10-14 days and then perk
back up once the 4th of July demand starts. Cauliflower
Quality is very good, with a good supply.
MIXED VEGETABLES Celery
Artichokes ESCALATED: Pricing remains escalated although the market has
Quality is very good with moderate supply, and the market is a weaker undertone, quality is improving. A few shippers have
steady. started in Salinas as we look for volume to increase. Oxnard will
still be shipping through the month of June, at which time all
Arugula Celery will be moving to the Salinas / Santa Maria growing areas
Supply and quality are good. for the remainder of the season.
Asparagus Corn
Southern Baja continues with good production in all sizes. Good volume and quality available this week out of South
Guanajuato should start up in the next 7 to 10 days. Peruvian Georgia and Coachella.
production has slowed down due to some field closures due to
market conditions. Markets are less active after the holiday, and Fennel
with Mexico/Peru/USA regions in production. Good supply continues with very good quality.
Garlic
EXTREME: Domestic supply is very tight, and shippers are
holding to averages, but we expect this volatile market to
continue through the summer. Garlic Company is now shipping
products from Mexico until the new garlic crop gets started in
mid-July.
Ginger
EXTREME: Ginger is very volatile due to very inconsistent
supply, and the market is higher. Supply remains tight for the
foreseeable future.
Green Cabbage
ESCALATED: Quality is good; supplies continue to be light.
The market is very active.
Green Onions
Supply is good with very good quality. Market is steady.
6
market trends
WEek ending June 10, 2022
Produce (continued)
Jicama ONIONS
Steady supply available crossing through McAllen.
The Imperial Valley will be finishing up their onions this week
before moving up north to the San Joaquin Valley. White
Kale (Green)
onions were the first to finish, with yellows beginning to wrap
Supply is steady, quality is very good.
up as well. There is still good availability on red onions out of
Brawley, with some deals to be had on straight load volume.
Mushrooms
New Mexico started in a small way this week, with plans
ESCALATED: Quality is good, although supply is down and
to start really ramping up next week. The sizing is smaller
markets are higher primarily due to a lack of labor, shortages
compared to California, but there will be availability on all
in the component of growing such as peat moss, and other
colors. Truck capacity out of California was tight, and rates
inflationary pressure. We expect to see this continue to be
were elevated after the Memorial Day weekend. They should
a challenge until some of the growing costs can get under
continue to remain steady as more volume continues to come
control of this particularly labor intensive and cost sensitive
out of that region.
item.
Napa Cabbage
POTATOES
Quality is good, and supplies are improving.
The market continued its rise this week across all sizes and
Parsely (Curly, Italian) grades. 60/70/80 count potatoes continue to be the most in
Quality is good; fair supply of curly parsley with good demand. demand size, and it is getting increasingly more difficult to find
Very light supply continues, and the market is escalated with volume on those. Production is dropping significantly now that
much higher pricing. most are in their Burbanks which are just not packing out like
the Norkotahs. We will continue to see the market rise as we
Rapini get deeper into the remaining crop and will not see any relief
Excellent supply this week and next. until the new crop in the Fall. We recommend that buyers plan
ahead for their orders as it is getting more difficult to get orders
Red Cabbage turned around quickly. Truck capacity out of Idaho bounced
ESCALATED: Quality is good, the market continues to be back relatively well after the Memorial Day weekend. Trucks
active. were plentiful this week, but rates were still a bit elevated.
Snow Peas & Sugar Snap Peas
WATCHLIST: Rain in Guatemala continues to slow down the TOMATOES
production of snow peas, and quality will be affected in the Markets are active on all varieties this week due to a lack of
coming weeks. Sugar snap supply is steady and production in availability on both coasts. Florida volumes are limited as their
the U.S. continues to ramp up. season winds down. Mexican production is slowly transitioning
to the Baja region. Expect escalated prices over the next two
Spinach (Bunched & Baby) to three weeks until West and East Coast growers transition
Supply and quality are good. their crops to new growing regions.
Spring Mix
Supply and quality are good.
Sweet Potatoes & Yams
Demand continues to be stable across all sizes and varieties.
There are deals to be had on both #1’s and Jumbos out of
North Carolina. FOB’s out of Mississippi are a bit higher but
quality out of that region has been outstanding. We should see
prices gradually start to rise throughout the summer months
and into the new crop.
7
market trends
WEek ending June 10, 2022
Beef, Veal & Lamb
Last week, the weekly average USDA Choice cutout was up 1.2% (w/w) but dropped 19.2% (y/y). Beef production declined 5.8% last
week (w/w) but was 3.0% higher than a year ago (y/y). Year-to-date, beef production was also 0.9% higher than last year, with USDA
projecting a gain of 1.8% for H1 (’22) beef output (y/y). This past Memorial Day weekend along with the warm weather was a reminder
that grilling activity has arrived. According to the USDA, on April 30, boneless-beef cold storage stocks were 16.7% larger (y/y) but fell by
0.6% during the month. Foodservice will monitor the various beef trim and ground beef markets this late spring and summer, especially
with record-high boneless skinless chicken breast prices still materializing (which typically are at a discount to ground beef prices). The
most recent weekly 81/19 (percent) ground beef market is $2.902/lb., up only 0.2% (y/y). Ground chuck is $3.029/lb. up 1.5% (y/y), and
the ArrowStream Boneless Skinless Chicken Breast Index is $3.595/lb., up 65.8% (y/y). Therefore, there may be only modest downside
price potential for ground beef and ground chuck; however, chicken breast prices likely have notable downside risk, especially during this
time of year (seasonal top). The Average, USDA, FOB per pound.
Description Market Trend Supplies Price vs. Last Year
Live Cattle (Steer) Decreasing Available Higher
Feeder Cattle Index (CME) Decreasing Available Higher
Ground Beef 81/19 Increasing Short Higher
Ground Chuck Increasing Short Higher
109 Export Rib (ch) Decreasing Steady-Available Lower
109 Export Rib (pr) Increasing Steady-Short Lower
112a Ribeye (ch) Increasing Steady-Short Lower
112a Ribeye (pr) Decreasing Available Lower
114a Chuck, Shlder Cld(ch) Increasing Steady Lower
116 Chuck (sel) Increasing Steady-Short Lower
116 Chuck (ch) Increasing Steady-Short Lower
116b Chuck Tender (ch) Increasing Steady-Available Lower
120 Brisket (ch) Increasing Available Lower
120a Brisket (ch) Decreasing Steady Lower
121c Outside Skirt (ch/sel) Increasing Steady Lower
121d Inside Skirt (ch/sel) Increasing Steady Lower
121e Cap & Wedge Increasing Steady Lower
167a Knckle, Trimmed (ch) Increasing Steady-Short Lower
168 Inside Round (ch) Decreasing Steady-Available Lower
169 Top Round (ch) Increasing Available Lower
171b Outside Round (ch) Increasing Steady Lower
174 Short Loin (ch 0x1) Increasing Short Lower
174 Short Loin (pr 2x3) Decreasing Available Lower
180 0x1 Strip (ch) Increasing Steady-Short Lower
180 0x1 Strip (pr) Increasing Steady Lower
184 Top Butt, boneless (ch) Increasing Steady Lower
184 Top Butt, boneless (pr) Increasing Short Lower
184-3 Top Butt, bnls (ch) Increasing Steady Lower
185a Sirloin Flap (ch) Increasing Available Lower
185c Loin, Tri-Tip (ch) Increasing Short Lower
189a Tender (sel, 5 lb & up) Decreasing Available Lower
189a Tender (ch, 5 lb &up) Increasing Steady-Available Lower
189a Tender (pr, heavy) Increasing Steady Lower
193 Flank Steak (ch) Increasing Steady Lower
50% Trimmings Increasing Steady-Available Higher
65% Trimmings Increasing Steady Higher
75% Trimmings Increasing Short Lower
85% Trimmings Increasing Steady Higher
90% Trimmings Increasing Steady Higher
90% Imported Beef (frz) Decreasing Available Higher
95% Imported Beef (frz) Decreasing Available Higher
Live Cattle (Steer) Decreasing Available Higher
Feeder Cattle Index (CME) Decreasing Available Higher 8
market trends
WEek ending June 10, 2022
Grains
The grains markets had a mostly lower week, with the only gainers being soybeans and spring wheat (w/w). Nearby corn
futures corrected upward late in the week as the trade pondered the effects of the new trade deal between Brazil and China,
which will loosen the restrictions Chinese importers face when importing Brazilian corn. China had similar agreements with the
U.S., Ukraine, and Argentina, its three main sources of corn and soybeans up until this point. The move is probably in reac-
tion to Ukraine’s inability to export corn anywhere right now because of the war, and earlier last week, the market’s sentiment
seemed to be for less export corn demand here in the U.S. as a result of the deal. But, we don’t think that may end up being
the case. There may be a shake-up in who the U.S. ships corn to, but demand will likely remain firm nonetheless, which most
likely explains Friday’s higher price correction. New crop corn export sales have tapered off in the past few weeks vs. 2021’s
blistering pace, but were still the second-best on record seasonally, and China has accounted for almost 50% of those sales.
There are a number of factors putting downward pressure on the corn market right now, but this new trade deal between China
and Brazil will not be one of them which may be some good news for U.S. buyers. Prices USDA, FOB.
Description Market Trend Supplies Price vs. Last Year
Soybeans, bushel Increasing Steady-Short Higher
Crude Soybean Oil, lb Decreasing Steady Higher
Soybean Meal, ton Increasing Steady Higher
Corn, bushel Decreasing Available Lower
Crude Corn Oil, lb Decreasing Steady-Short Higher
High Fructose Corn Syrup Decreasing Available Lower
Distillers Grain, Dry Decreasing Available Higher
Crude Palm Oil, lb BMD Increasing Steady Higher
HRW Wheat, bushel Decreasing Steady-Short Higher
DNS Wheat 14%, bushel Increasing Short Higher
Durum Wheat, bushel Decreasing Steady-Short Higher
Pinto Beans, lb Steady Steady Higher
Black Beans, lb Steady Short Higher
Rice, Long Grain, lb Steady Short Higher
Dairy
Last week, the cheese block and cheese barrel markets finished 2.4% and 4.2% lower, respectively (w/w), but these markets are
still near levels not seen since November 2020. The average CME spot butter market was up 3.1% (w/w) and the highest since
January when it hit the highest level ($2.935) since 2015. Later this year, better year-over-year milk production is expected to oc-
cur, which could equal lower milk prices and lower operating costs for cheese and butter manufacturers. The U.S. dairy products
(prices) have been supported for many months due mostly to strong exports, but the international dairy markets have experienced
weakness in recent weeks, which could slow exports and temper seasonal price gains for the cheese and butter markets this
summer. During the last 10 years, cheese block and spot butter prices averaged (cumulative) 6.1% and 5.5% higher respectively
in June compared to the previous month’s (April) average. Class I Cream (hundredweight), from USDA.
Description Market Trend Supplies Price vs. Last Year
Cheese Barrels (CME) Decreasing Steady Higher
Cheese Blocks (CME) Decreasing Steady Higher
American Cheese Increasing Short Higher
Cheddar Cheese (40 lb) Increasing Steady-Short Higher
Mozzarella Cheese Increasing Steady-Short Higher
Monterey Jack Cheese Increasing Steady-Short Higher
Parmesan Cheese Increasing Short Higher
Butter (CME) Increasing Short Higher
Nonfat Dry Milk Increasing Steady Higher
Whey, Dry Decreasing Available Lower
Class 1 Base Steady Short Higher
Class II Cream, heavy Increasing Steady-Short Higher
Class III Milk (CME) Increasing Steady Higher
Class IV Milk (CME) Increasing Short Higher
9
market trends
WEek ending June 10, 2022
Pork
Last week, the weekly average USDA pork cutout increased 3.6% (w/w); however, it was 14.0% lower (y/y). Over the last
week, pork production declined 2.7% (w/w), but was 0.9% greater than 2021 (y/y). Year-to-date, pork output is still 4.3%
below last year (y/y), a small improvement from last week, and closer to USDA’s H1 (’22) projection of a 4.1% reduction in
annual pork production (y/y). As mentioned earlier, U.S. exports of pork seem to be lackluster this year, especially to China. It
is worth noting that USDA’s WASDE expectation is that total supply and demand should be balanced, with imports increasing
19.3% (y/y) and exports declining 6.4% (y/y). Imports are rather minor compared to the other components and will have a
limited market impact. The WASDE export number may be a bit optimistic, given the data from the export sales report thus
far and the continued strength of the U.S. dollar. The average USDA pork cutout value lost some steam this past week and
hovered in the $1.07-$1.08/lb. range, then fell to $1.06/lb. on Friday. Pork production is the lowest in Q2, thus the downside
price risk may be small at this time. Since 2011, the USDA pork cutout averaged (cumulative) 3.8% higher in June compared
to the previous May (average). Prices USDA, FOB per pound.
Description Market Trend Supplies Price vs. Last Year
Live Hogs Steady Short Higher
Sow Decreasing Available Higher
Belly (bacon) Increasing Steady Lower
Sparerib(4.25 lb & down) Decreasing Steady-Short Lower
Ham (20-23 lb) Increasing Steady-Short Higher
Ham (23-27 lb) Increasing Steady-Short Higher
Loin (bone in) Increasing Steady Lower
Babyback Rib (1.75 lb & up) Decreasing Available Lower
Tenderloin (1.25 lb) Decreasing Steady Lower
Boston Butt, untrmd (4-8 lb) Increasing Steady-Short Lower
Picnic, untrmd Increasing Steady-Short Lower
SS Picnic, smoker trm box Increasing Short Higher
42% Trimmings Decreasing Steady-Available Lower
72% Trimmings Decreasing Available Lower
10market trends
WEek ending June 10, 2022
Poultry
Last week, USDA’s national whole broiler/fryer index dropped 0.1% (w/w), although was 64.1% above a year ago. For the week
ending May 21, chicken slaughter was 1.0% higher (w/w), while the average bird weight was 0.48% heavier (y/y). Ready-to-cook
chicken production was up 0.7% (w/w), but still 0.7% below a year ago. Year-to-date, ready-to-cook broiler production is running
larger by 0.7% (y/y), which is below USDA’s expected gains of 1.8% (y/y) for H1 (’22). Last Wednesday’s Poultry Slaughter report
indicated lower levels of chilled and frozen chicken certified wholesome in April. Certified chilled chicken dropped 10.7% from
March (m/m) and 3.3% from last year (y/y), while frozen chicken meat certified was 13.1% lower than in March (m/m) and 9.0%
below April 2021 (y/y). Despite the weakness in April certifications, YTD levels of certified chilled and frozen chicken are still 1.0%
above last year. May is usually the turning point in price seasonality for chicken breasts, with the ArrowStream Boneless Skinless
Chicken Breast Index usually peaking for the year during the third week of May (cumulative average over the last five years). FOB
per pound except when noted.
Description Market Trend Supplies Price vs. Last Year
Whole Birds WOG-Nat Steady Steady-Short Higher
Wings (jumbo cut) Decreasing Available Lower
Wing Index (ARA) Decreasing Available Lower
Breast, Bnless Skinless NE Increasing Short Higher
Breast, Bnless Skinless SE Increasing Short Higher
Breast Boneless Index (ARA) Increasing Short Higher
Tenderloin Index (ARA) Increasing Short Higher
Legs (whole) Increasing Short Higher
Leg Quarter Index (ARA) Increasing Short Higher
Thighs, Bone In Increasing Short Higher
Thighs, Boneless Increasing Short Higher
Whole Turkey (8-16 lb) Decreasing Short Higher
Turkey Breast, Bnls/Sknls Increasing Short Higher
Eggs
Description Market Trend Supplies Price vs. Last Year
Large Eggs (dozen) Decreasing Steady-Available Higher
Medium Eggs (dozen) Decreasing Steady-Available Higher
Liquid Whole Eggs Steady Short Higher
Liquid Egg Whites Steady Short Higher
Liquid Egg Yolks Steady Steady Higher
Egg Breaker Stock Central Decreasing Available Higher
11market trends
WEek ending June 10, 2022
Seafood
Canada’s Gulf of St. Lawrence reached 73.0% of its 2022 snow crab quota last week, and the season should start to wind
down from here on with 23 grid closures announced in the southern half of the Gulf due to right whale sightings. The Gulf’s
regional quota for the current season increased pretty much across the board from 2021, especially in the southern half, and
seems to have helped temper price increases for the U.S. from the ban on Russian seafood imports. Canada itself joined in
on those import bans last week, announcing a halt to “luxury goods” imports from Russia, which Canada’s minister of foreign
affairs clarified would include seafood products. This probably won’t ripple down to the U.S. seafood market in any notable
way, however. Canada’s at the front of many seafood supply chains here in the U.S. rather than a middleman like China,
who continues to test imported food packages for coronavirus which is keeping the seafood industry on edge. New seafood
import monthly prices are due out next week but expect prices to remain elevated compared to a year ago going forward.
Prices FAS monthly imports.
Description Market Trend Supplies Price vs. Last Year
Shrimp (16/20 frz) Steady Available Higher
Shrimp (61/70 frz) Steady Available Higher
Shrimp Tiger (26/30 frz) Steady Available Higher
Snow Crab, frz Steady Available Higher
Tilapia Filet, frz Steady Available Higher
Cod Filet, frz Steady Available Higher
Tuna Yellowfin, frsh Steady Available Higher
Salmon Atlantic Filet, frsh Steady Available Higher
Pollock Filet, Alaska, frz Steady Available Higher
12market trends
WEek ending June 10, 2022
Paper and Plastic Products
Description Market Trend Supplies Price vs. Last Year
WOOD PULP (PAPER)
NBSK- Paper napkin Steady Short Higher
42 lb. Linerboard-corrugated box Steady Short Higher
PLASTIC RESINS (PLASTIC, FOAM)
PS-CHH-utensils, cups, to-go cont. Steady Short Higher
PP-HIGP-heavy grade utensils Steady Steady Higher
PE-LLD-can liners, film, bags Steady Short Lower
Retail Price Change from Prior Month
Description Apr-22 Mar-22 Feb-22
Beef and Veal Decreasing Increasing Increasing
Dairy Increasing Increasing Increasing
Pork Increasing Increasing Increasing
Chicken Increasing Increasing Increasing
Fresh Fish and Seafood Increasing Increasing Decreasing
Fresh Fruits and Vegetables Increasing Increasing Increasing
Various Markets
The softs markets were steady to higher last week with coffee leading the way after reversing earlier-week losses on drier
weather forecasts in Brazil’s growing regions. Cocoa showed some odd price action late in the week, negating early losses as
well. This is despite reports from private group IRI that chocolate demand here stateside is starting to see some destruction in
the face of higher prices. IRI pegged sales down 6.0% and prices up 11.0% in the 13-week period between mid-February and
mid-May (y/y). ICE-monitored cocoa inventories recently rose to a six-month high, making the current cocoa price level seem
high and could equal a downward correction. Price bases noted below.
Description Market Trend Supplies Price vs. Last Year
Whole Peeled, Stand (6/10) Steady Short Higher
Tomato Paste-Industrial (lb) Steady Short Higher
Coffee lb ICE Increasing Steady-Short Higher
Sugar lb ICE Decreasing Steady-Available Higher
Cocoa mt ICE Increasing Steady-Available Higher
Orange Juice lb ICE Increasing Steady-Short Higher
Honey (clover) lb Decreasing Steady-Available Higher
13You can also read
