Week Ending July 17, 2020 - **Graphs represent data for the week ending July 10, 2020** - Schenck Foods
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Week Ending July 17, 2020 **Graphs represent data for the week ending July 10, 2020**
DIESEL
BEEF
Market is mixed. Total beef production for last week was up 12.2% versus
prior week due to the shortened holiday production week and was up 4.2%
compared to same time last year. Total headcount for last week was 664,000
as compared to 658,000 for the same week last year. Live weights for last
week were even with prior week but up 46 lbs. versus same time last year.
Production has continued to improve but overall availability remains mixed
U GRINDS between suppliers/plants. Labor availability related to COVID-19 has been an
-▼LOINS ongoing concern but is slowly improving. Measures put in place in plants have
▲▼ROUNDS helped improve employee safety but has slowed availability of some items
due to changes in line times and reduction of additional trimming at some
-- CHUCKS
plants. The Choice grading percentage remains very high and this is putting
▼ RIBS pressure on availability of Select graded product on multiple cuts. Retail
movement continues to be very good with advertising expected to be
stronger over the next few weeks. Typically demand eases as we move past
the 4th of July but the extreme changes in buying patterns this year has the
market in a more unsettled tone.
Grinds- Market is steady. Increased production continues to help improve availability as compared to just a few
short weeks ago. The market has seen large drops in prices over the past several weeks but as demand has
begun to improve the market has stopped the sharp declines and has become more steady with some suppliers
while others have seen price increases. Demand typically eases after the 4th of July, but retail advertising is
expected to be strong over the next few weeks and expected to help spur demand.
P a g e 1 | 13
Loins- Market is steady to weaker. Improving production and lighter buying activity has helped to improve
availability.
Rounds- Market is mixed. Improving production combined with a change in buying patterns is helping with
availability. The market has become more mixed this week due to mixed availability between the major packers
Chucks- Market is steady to weaker. Seasonally lighter demand combined with improving production is helping
improve availability.
Ribs- Market is weaker. Buying demand typically eases as we move past the 4th and this combined with
improved production and better availability is putting pressure on the market.
P a g e 2 | 13P a g e 3 | 13
PORK
Market is mixed. Total pork production for last week was up 26.6%
versus prior week due to the shortened holiday production week and
was up 9.7% compared to same time last year. Total headcount for last
week was 2,606,000 as compared to 2,419,000 for the same week last
-- BELLIES year. Live weights for last week were down 2 lbs. from prior week but
-▲HAMS up 6 lbs. from same time last year. Labor availability related to COVID-
▲▼LOINS 19 has been an ongoing concern and causing many of the plants to have
to run at reduced speeds. The limited production has caused cuts and
-- BUTTS
allocations to be commonplace over the past several weeks. Further
▼RIBS trimmed, deboned, and more labor intense items continue to remain in
lighter supply. Availability is mixed between suppliers. Foodservice
demand has been slowly improving as additional states ease restrictions
on their shelter in place orders. Pricing has moved dramatically higher
and lower over the past few weeks due to the large swings in demand
and production.
Bellies- Market is firmer. The market has seen both higher and lower prices over the past several
weeks but has been pushing higher as we moved into this week. Reports this week point towards belly
inventories being tighter than anticipated and putting additional pressure on the market.
Hams- Market is firmer. Improving buying activity combined with the industry being behind in overall
production is putting pressure on the market.
Loins- Market is mostly steady. Availability is mixed between packers with improving buying interest.
Export demand is improving and expected to be seasonally strong as we move into August.
Butts- Market is steady to weaker. Buying activity has been seasonally lighter as we moved into this
week.
Ribs- Market is weaker. Buying activity is typically lighter following the 4th of July and is helping put
downward pressure on the market this week.
P a g e 4 | 13P a g e 5 | 13
CHICKEN
Market is mixed. Total headcount for last week was 165,184,000 as
compared to 171,800,000 for the same week last year. Average weights
for last week were 6.29 lbs. as compared to 6.27 lbs. for the same week
last year. Regarding chick placements, fryers for week ending 8/15/20
are estimated at 167.2 million. Placements for previous week were 166.0
-- WOGS million and same week last year was 170.4 million. Domestic demand
-▲TENDERS patterns are starting to shift on multiple categories. Sales of boneless
-▼BNLS BREAST breast and dark meat are slowing a bit. Conversely, wings and tenders
-▼ LEG QTR are highly sought after and on the rise. Retail activity remains consistent
-▲WINGS while foodservice demand is starting to become uncertain as some
states tighten shut down measures. Export demand remains steady but
is still below industry expectations. Supply is available and continues to
expand on a week to week basis.
WOGS- Market is steady to firmer. Demand for sized WOGS and heavy WOGS remains active in the
retail deli and QSR channels. Limited weekly supply is keeping the market tight.
Tenders- Market is steady to firmer. Foodservice demand and QSR activity continue to be steady and
supporting the category. Limited production continues to keep the overall category in balance with
demand.
Boneless Breast- Market is steady to weaker. Retail demand remains steady and keeping medium
boneless breast clearing well. Future foodservice demand is a little uncertain and this is causing a
decline in demand for jumbo boneless. Product is available across all sizes. Jumbo size is showing some
excess.
Leg Quarters and Thighs- Market is steady to weaker. Domestic demand for bone-in drums and thighs
remains soft and trending weaker. Export sales continue to be soft as trade to Pacific Rim has been a
challenge. Excess supply is being reported.
Wings- Market is steady to firmer. The recent increase in restaurant dine-in activity has given a lift to
this category. Future expectations remain uncertain based on the dining guidelines put out by each
state. Supply is available, but tight on all sizes.
P a g e 6 | 13P a g e 7 | 13
TURKEY
Market is mixed. Total headcount for last week was 4,372,000 as
compared to 4,293,000 for the same week last year. Average weights
for last week were 31.74 lbs. as compared to 31.69 lbs. for the same
week last year. Market on whole body turkeys remains firm. Domestic
demand patterns on breast meat and institutional breasts remain
▲WHOLE BIRDS steady to firm. Overall activity on wings and drums has become mixed
-- BREAST MEAT due to inconsistent spot activity. Export activity remains mostly
unchanged this week with very little information being reported.
-- WINGS
Supply remains available across most categories and lines of business.
-- DRUMS
Whole Birds- Market is firm. The market remains firm with toms steady and hens the most sought
after. Due to pre-booked volume, the market is in a stable and well supported position. Limited supply
is being reported with very few spot loads being offered.
Breast Meat- Market is steady to firm. Demand for white meat and white trim remains continues to be
well supported by retail deli, sliced meats, and further processors. Supply for fresh boneless remains
tight while frozen breast meat is available.
Wings- Market is steady to weaker. The demand for whole wings and 2-joint wings is steady to weak
depending on the producing plant. Overall activity has been slowing down and product is available.
Drums and Thigh Meat- Market is steady. Demand for drums has started to decline. Thigh meat
continues to be steady as ground turkey remains strong in the retail channel. Supply is available.
SEAFOOD
Gulf Shrimp- Market is unsettled. Raw material prices continue to
see upward pressure with light inventories keeping additional
pressure on the market. Louisiana waters recently closed to fishing,
but Texas waters opened on July 15th.
Black Tiger Shrimp- Market is mixed. Mid and smaller sized shrimp are seeing upward pressure on the
market as buying activity has been improving. Inventories have become tighter and availability is mixed
between suppliers. Large sizes are more unsettled and have seen downward pressure this week due to
foodservice demand becoming more uncertain with restaurant reopening plans slowing or reversing in
some states.
White Shrimp- Market is unsettled. Product from Ecuador has become more unsettled due to buying
activity from China slowing and causing more product to be available for other markets. This is now putting
pressure on other markets as more product has become available and causing the market to be unsettled.
King Crab- Market is steady to firmer. Buying activity has been improving and putting pressure on the
market.
P a g e 8 | 13Snow Crab- Market is firm. Inventories are light for an active demand. Buying activity has been very active
for the past few weeks and putting pressure on availability. Availability on larger sizes is limited.
Warm Water Lobster Tails- Market is mostly steady. Demand has been well below expectations for several
weeks helping to keep pressure on the market.
North American Lobster Tails- Market is unsettled. New season production has been lighter than expected
due to plants running below capacity for several weeks due to labor concerns. Fishing has been good, and
this is helping inventories to build and pushing raw material costs lower.
Salmon- Market is weaker. Inventories are good for a light to dull demand.
Cod- Market is steady.
Flounder- Market is steady.
Haddock- Market is steady.
Pollock- Market is unsettled. Larger sized product is in limited supply due to recent catches being more on
smaller sized fish.
Domestic Catfish- Market is unsettled. Retail demand has been very good the past several weeks and
putting pressure on available inventories. Production has been lighter than expectations and keeping
pressure on availability.
Tilapia- Market is unsettled. Retail demand has been good and helping to move inventories. Production
costs overseas have been rising and keeping the market in an unsettled tone. Imports are expected to be
stronger over the next few weeks as tariff exclusions are set to expire the first week of August.
Swai- Market is steady.
Scallops- Market is steady to firmer. The market for domestic product is steady to firmer with smaller sized
product seeing some upward pressure this week with demand putting pressure on available inventories.
The market for product from other regions is holding steady.
DAIRY
Cheese
Market is unsettled. The CME block market moved lower this week while the barrel market
moved both higher and lower. Milk supply is lower, in line with seasonal trends. Therefore,
producers across the country are producing lower volumes. Demand for retail and
foodservice segments are mixed. Undoubtedly, the second phase of the USDA food box
program is creating considerable demand for dairy items in many regions. In the northeast both foodservice and
industrial segments are experiencing mixed demand as market conditions related to COVID-19 continue to affect
the region. Inventories in the region are tight. In the Midwest producers report demand for blocks is strong.
Barrel demand is steady. Western region producers report decent demand. Inventories are tight. There is
uncertainty amongst manufacturers as the region has increasing virus cases and reopening plans are being
adjusted accordingly.
P a g e 9 | 13Butter
Market is unsettled. The CME butter market has moved both higher and lower.
Production across the country is lighter as cream continues to be pulled away from
butter churning and into production of other cream-based products. Demand for print
butter is good in most regions. Foodservice segment demand continues to be less than
prior year levels. In the northeast retail demand is steady. Foodservice segment demand has reemerged albeit at
levels lower than anticipated. Central region producers report steady retail demand. Foodservice demand is
active but at levels lower than prior year. In the West foodservice demand is now light after news of additional
restrictions set in place for businesses who wish to reopen. Inventories are available for current demand needs.
P a g e 10 | 13EGGS
Market is steady to weaker. Retail activity remains steady as the demand for carton
eggs remains stable. Ad activity remains consistent as retailers promote on a regional
basis. Foodservice volume is steady to weaker as loose egg sales are starting to
decline. The fast food channel remains consistent for the time being. Supply is
available on both medium and large sizes. Market is trending lower on the medium
size and lower on the large size. National weekly shell egg inventory reports shell egg
inventory up 4.2% over last week.
P a g e 11 | 13SOY OIL
Market is firm. The market had a late week rally and pushed upwards. Global demand is
increasing as South America is experiencing some issues on the supply side. Domestic
demand will be the large driver in how this market continues as some states start to
implement restrictions.
GLOVES
Market is firm. Inventories are very limited. Manufacturing in glove producing countries
around the globe is operating at reduced capacity. With worldwide demand increasing across
all industries, the supply chain continues to experience significant disruption. The market
disruptions are expected to continue for the foreseeable future.
P a g e 12 | 13For questions regarding the markets, please contact the appropriate Category Manager:
Oil, Wheat, Grains, Canned Products, Imports: Scott MacKaben, Senior VP of Procurement, ext. 5457
Beef, Pork, Seafood: Davy Ard, Director of Category Management, ext. 5431
Poultry, Eggs: Ken Kotecki, Category Manager, ext. 5463
Non-Foods, Spices, Dairy: Angie Rivera, Category Manager, ext. 5427
Beverages, Frozen Vegetables: Crystal Wilkins, Category Specialist, ext. 5451
1225 Old Alpharetta Road, Suite 235, Alpharetta, GA 30005 | 800.569.4821 | frostyacres.com
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