CommodityOne Weekly Market Reports

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Produce

Adverse weather conditions persisting in different growing regions have resulted in a significant decline in overall crop yields and an increase in quality issues and bloom loss. Moreover, we are approaching the transition from Yuma, AZ to Salinas Valley, CA in a few weeks, a period that has historically witnessed elevated market prices and heightened quality concerns. California is currently experiencing another round of storms, with additional rainfall expected in the central growing regions. While these rains won’t immediately impact vegetable production, the effects will be seen as the transition from Yuma to Salinas occurs. Growers have been dealing with quality defects that can affect yields and weights but are working hard to address these issues in the fields.

Grains

Last week, the market for soybean oil fell by about 3.5% as speculative speculators kept selling. With some increased exports and China pulling back after the Lunar New Year celebrations, palm oil saw little change. Canola saw significant speculative selling but finished largely unchanged despite its volatility.

Dairy

The markets for shell eggs are declining throughout the Northwest and California. Block size is getting smaller. Barrel is becoming bigger. Butter is still up.

Beef

Chucks are still steady. Rounds are getting stronger, and buyers appear to be entering the market more quickly. Sel/No Roll grade and light ribs in particular have produced a little strength in the ribs and tenders. Strips are still scarce and getting stronger. For the near future, grinds are combined from packer to packer.

Pork

Butts are still in high demand, thus they are continuing to rise. Strengthening of the ribs is still evident. Within the next week, this is anticipated to fall off. Loins are moving in line with the usual seasonal trend, notwithstanding the slowdown in retail demand. Although the market is still erratic, bellies are heading downward for the upcoming week. As predicted, ham sales are rising due to robust exports and rising consumer demand.

Poultry

Prices are rising across the board, following the same pattern that has been evident over the past month. All sizes of breasts had significant price hikes. Wings of all sizes continue to rise in popularity due to high demand. There is a persistent rise in tenders. The birds as a whole were marginally smaller. Dark is still up.

Seafood

The season of Lent is now upon us. Due to the difficult season, there is a limited supply of lobster tails. The Dungeness crab season is well underway, and new stock is already available from vendors. This year, crawfish prices will be high and supplies will be limited.

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Produce

Continued adverse weather conditions across various growing regions have caused a considerable drop in overall yields and an uptick in quality problems and bloom loss. Thankfully, several regions are expected to experience better weather in the upcoming weeks, which will likely improve the situation in multiple markets. We are less than a month away from the beginning of the leafy green transition, heading back to the Salinas Valley. Historically, we have seen higher markets and increased quality issues during this time. The weather has taken its toll on most commodities in Yuma, and the market has risen considerably. Growers see lighter weights as harvest crews mitigate epidermal peels and blisters. The markets have reacted due to the industry experiencing decreased yields and increased demand.

Grains

Although trading was down for the majority of the week, soybean oil finished the day down only around ½ percent. However, the market remains mostly negative. Canola fell along with soy, and supplies are good due to decreased exports and lower-than-anticipated demand for biofuel. Palm is higher when exports rise and production declines.

Dairy

Shell egg markets are rising, with the exception of the Northwest and flat mediums. Eggs from California are declining. Block is going down and barrel is going up in cheese. Cream is plentiful, and butter is low.

Beef

Packers keep cutting crop in order to control inventories and boost profits. For the time being, buyers remain calculating and live hand to mouth. As consumers search for deals on value cuts, chucks and rounds maintain their appeal due to their firmness in the ends. Since tenders and ribs have the most dollar exposure, buying has slowed and pricing discovery has been constrained.

Pork

The market for butts is still very active and moves against the seasonal trend. Spareribs and backribs are still in demand, although this market is likely to experience a downturn before rebounding. This time of year, low demand for boneless loins is to be expected, hence prices are dropping. Bellies remains a highly unstable market. For the next few weeks, there should be significant volatility.

Poultry

The market for chicken is expanding overall, with some products enjoying HUGE increases. Breasts increased in all sizes, with jumbo and medium sizes seeing the biggest price increases. Wings of all sizes continue to rise in popularity due to high demand. There is a persistent rise in tenders. Last week, whole birds were somewhat higher. Thighs were elevated.

Seafood

Lent is now here. Due to the difficult season, there is a limited supply of lobster tails. The Dungeness crab season is well underway, and new stock is already available from retailers. This year, crawfish prices will be high and supplies will be limited.

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Produce

The persistent unfavorable weather conditions in different growing regions have led to a decrease in overall yields and an increase in quality issues and bloom loss. Consequently, market prices have remained higher and are anticipated to stay at this level for the upcoming weeks. The weather patterns continue to challenge quality and harvesting crews out of the desert growing regions of Arizona and California.

Grains

Last week, oil consumers took advantage of the lower markets and invested in soybean oil, which caused the markets to rise. Canola oil is flat since there is a good supply and soft exports of seeds. Palm is likewise flat; nevertheless, although we have been anticipating some supply problems due to their weather, nothing significant has happened as of yet.

Dairy

Eggshell markets are rising, with the exception of the Northwest and flat mediums. Eggs from California are declining. Barrels are growing while blocks are shrinking. Butter remains down.

Beef

Rounds and chucks stay constant as long as supplies are traded. The lighter tones of ribs continue to warn purchasers. Strips show a mixed reflection because of product pockets, with CAB showing the greatest strength. Overall, tenders are still soft; the only grade that shows strength is Sel. As supply increase, grinds are topping out and should correct in the coming weeks.

Pork

Demand for butts is still high, but it should level down in the coming week or two. Bellies are dropping following a brief spike brought on by buy-ins that have since decreased. Although spareribs and backribs saw another increase in price, the market is expected to decline over the coming weeks

Poultry

The increased demand for wings and tenders has persisted even after the Super Bowl. The supply of breasts in greater sizes has somewhat decreased. The market is still thriving for dark meat. Mostly balanced whole birds.

Seafood

Lent has begun. The season has been difficult for lobster tails, and there is a limited quantity. All sizes of cold-water lobster tails are seeing price increases due to difficult inventory circumstances. The Dungeness crab season is well underway, and new stock is already available from vendors.

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Produce

The decline in overall yields and the rise in quality issues can be attributed to the persistent adverse weather conditions experienced in various growing regions. As a result, market prices have remained elevated and are expected to continue at this level for the next few weeks. There is no rain in the forecast for the remainder of the week, but muddy fields will slow packing with minor delays at loading. We have seen freezing temperatures, rain, and heat. That culmination can damper the quality, and we are seeing blisters, peeling, and some pinking in lettuce/leafy items. Growers have been working hard to keep quality and weights consistent through these challenges.

Grains

Last week’s soybean oil futures saw a strong start before declining at the end of the week. Although the higher rise was caused by rising energy markets, soybean futures were kept in control by the overall strong supply of beans and other commodities. Canola is flat, whereas palm has increased due to production problems and Chinese demand.

Dairy

With the exception of Northwest California, where shell egg prices are flat. Cheeses from Block & Barrel are getting better. Butter is still up.

Beef

Packers are attempting to increase replacement cost by paying extra for cattle last week. Chucks and bullets stay consistent. Buyers should use caution as ribs remain in corrective mode. Strips are also steady, with premiums carried by CAB and Sel. Overall, tenders are still soft. As supply increase, grinds are topping out and should correct in the coming weeks.

Pork

A small increase in butts was caused by more upfront purchases. The market for ribs showed considerable growth as well, particularly for backribs and spareribs. Demand is steady and loins are staying basically stable. Bellies moved down this week and are still erratic.

Poultry

Wings were the star of the market, and they were harder to get due to the Super Bowl. The availability of breasts in all sizes has improved. There are fewer and fewer tenders available. The desire for dark meat is still high. The majority of whole birds are balanced.

Seafood

The market for imported shrimp is beginning to solidify, and as Lent approaches, price increases are anticipated. In California, the Dungeness crab season began last week, and vendors will be receiving new stock from the upcoming season. Expect discounts on products from the previous season. The domestic crawfish stock has been wiped out by this summer’s dry weather.

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Produce

The western region of the United States is still experiencing significant rainfall. This, combined with consistently unfavorable weather conditions in Mexico and the Eastern United States, has led to continued decreased crop yields and higher-than usual markets. The overall leafy green markets continue to remain relatively steady. However, we will see delays in harvesting in Yuma from the rainy weather. We should expect to see a limited degree of weather-related issues for about another week. Harvest crews are working diligently to put up a good, usable pack. Production blocks are on a regular harvest schedule. However, we could see some lighter supplies as yields drop due to selection.

Grains

Last week’s soybean oil futures saw a strong start before declining at the end of the week. Although the higher rise was caused by rising energy markets, soybean futures were kept in control by the overall strong supply of beans and other commodities. Canola is flat, whereas palm has increased due to production problems and Chinese demand.

Dairy

This week, shell egg marketplaces are booming. Block is growing while the barrel market is contracting, butter is still up. Prices for January Cream and Culture will be lower as a result of such market modifications.

Beef

The market for beef has remained robust as long as people keep buying it. As retail beef sales volume starts to drop and prices continue to rise, the beef industry is witnessing a little decline in demand.

Pork

Butts are continuing to drop as expected; this trend should continue for a few more weeks. As long as rib stays stable, sideways trading is expected to persist for the foreseeable future. Similar to butts, loins are fashionable at the moment. Due to the strong demand and typical seasonal trends, bellies are still increasing.

Poultry

The demand for chicken is still growing. The availability of breasts in all sizes has improved. There are fewer and fewer tenders available. It’s wing season, so demand for wings of all sizes is rising. The desire for dark meat is still high. The majority of whole birds are balanced.

Seafood

The market for imported shrimp is beginning to solidify, and as Lent approaches, price increases are anticipated. In California, the Dungeness crab season began last week, and vendors will be receiving new stock from the upcoming season. Get a few deals on products from the previous season. The domestic crawfish stock has been wiped out by this summer’s dry weather.

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Produce

The western US has experienced substantial rainfall, which, when coupled with persistently unfavorable weather conditions in Mexico and the Eastern US, has resulted in reduced yields and a sudden surge in the overall markets. Apart from very cold temperatures in the desert growing regions of Southern California and Western Arizona (Yuma), these regions encountered more than an inch of precipitation. As a result, growers were unable to package any goods on Tuesday and Wednesday of this week due to the muddy terrain. Although the rain has ceased, shippers are still grappling with exceedingly muddy fields, impeding the packing process and causing delays in load times. Temperatures are anticipated to heat up in the upcoming week. This will definitely put stress on the commodities. Harvest levels are tracking similarly to last week, and with current U.S. inventories sitting at a high level, the market is expected to remain steady into the Super Bowl.

Grains

As crude oil moved flat to higher and bean oil moved lower, soybean oil separated from energy. The weather in South America has improved for the soybean crop, the US dollar is stronger, and stocks are up. Higher prices are possible since there are insufficient supplies of soybean oil. Canola markets are steady, whereas palm markets are erratic.

Dairy

The Northwest’s shell egg markets are up this week, while all other markets are down. Block markets are shrinking and barrels are rising. It’s butter time. Prices for January Cream and Culture will be lower as a result of such market modifications.

Beef

Softer tones are beginning to appear in middle meat prices. Ribs and tenderloins are essential commodities to keep selling out, although strips will still be in demand in early 2024 because of their favorable price spread. Rounds and Chucks seem to be exchanging consistently. Because of their limited harvest, grinds are in limited availability.

Pork

Next week, butts moved up once more. This market should continue to be robust due to decreased harvest numbers and strong demand. The price trend for ribs is firmer than anticipated; this is also a result of lower harvest levels. Due to strong retail and export demand, the loin market is still performing better than anticipated. Bellies are still erratic and have increased this week.

Poultry

Because of the limited production period after the holidays, overall supply is tighter. The supply of breasts has decreased. Tenders are becoming less available. The demand for wings has increased, making them more difficult to locate. The market for dark meat is still strong. The demand for whole birds is rising.

Seafood

On December 22, 2023, a new regulation on the origin restriction of seafood raw materials was announced. We’re taking a proactive approach with all suppliers to ensure continued adequate supply. The season is now in full swing in the big lakes with initially strong catches.

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Produce

The markets have sustained their upward trajectory as a result of a confluence of heightened domestic demand and reduced yields stemming from unfavorable weather conditions across various cultivation areas. It is projected that this pattern will endure until the month of January. The desert growing regions of Southern California and Western Arizona (Yuma) have experienced cold weather over the last two weeks, with several hours of field freeze in the early morning hours. Nighttime temperatures have risen slightly, with only traces of frost in the fields at this time, but due to the cold temperatures, expect to see the effects of the freezing temperatures in all items shipping from these growing areas. Supplies out of these regions remain steady, but markets have increased slightly.

Grains

The soybean oil market is moving sideways because there isn’t any meaningful market news. The market may rise swiftly if the big funds reverse their short positions, which they currently hold. Canola seed is weak and canola oil is flat. Due to a decrease in available stockpiles and a rise in exports, palm climbed marginally higher.

Dairy

This week, shell egg marketplaces are booming. Markets for barrels and blocks are expanding. It’s butter time. Prices for January Cream and Culture will be lower as a result of such market modifications.

Beef

This market has increased as a result of the first winter storm. Rounds and chucks are in style. This week has seen a 180° turn in the appreciation of ribs and strips, which began last week. In the best-case scenario, tenderloins will maintain the present market pricing and follow suit. Due to the restricted crop, grinds are still in short supply; gains are observed on 80’s and source grinds.

Pork

It appears that butts have peaked and should start to decline. Large cold storage inventories are also contributing to the downward trend in rib prices. Be prepared to give in this market. Because there is little demand, boneless loins are likewise continuing to decline. Bellies are expected to gain strength over the month after showing modest support the previous week.

Poultry

Because of MLK Day and the cold conditions in the South that halted production, there is a shortage of goods overall. The availability of breasts in all sizes has decreased. Tenders are becoming less available. Demand for wings of all sizes has increased due to the NFL Playoffs, and production has decreased. The market for dark meat is still strong.

Seafood

On 12/22/23, an executive order was announced concerning the limitations on the provenance of seafood raw materials. Proactively, we are collaborating with suppliers to guarantee the availability of impacted commodities. Great Lakes whitefish season begins with some good catches. In the upcoming months, shortages of lobster tails from the North Atlantic are anticipated.

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Produce

The markets have remained higher due to a combination of increased national demand and lower yields caused by adverse weather in multiple growing regions. It is anticipated that this trend will persist until January. The desert growing regions of Southern California and Western Arizona (Yuma) have been experiencing cold weather over the last week, with several hours of field freeze in the early morning hours. Expect delays in load times due to harvesting starting late due to the cold weather.

Grains

The market for soybean oil has stabilized. Crop conditions and weather in South America are getting better. Money has been transferred from commodities to stocks by funds. Canola is still in a steady state with favorable market circumstances generally and no history of problems with winter logistics. With a generally strong balance sheet, palm is lower. steady.

Dairy

This week, shell egg markets are completely closed. Block markets are growing while barrels are shrinking. It’s butter time. Prices for January Cream and Culture will be lower as a result of such market modifications.

Beef

Although top 2/3, select grade, and light weight specifications have leveled off due to limited boxes, middle beef pricing had begun to drop. The supply of tenderloins exceeds the demand, causing them to continue to decline. Strips are nevertheless valuable even in limited quantities. Rounds and Chucks are trading consistently. There is still a shortage of grinds because of the small yield.

Pork

It appears that butts have peaked and should start to decline. Large cold storage inventories are also contributing to the downward trend in rib prices. Be prepared to give in this market. Because there is little demand, boneless loins are likewise continuing to decline. Bellies are expected to gain strength over the month after showing modest support the previous week.

Poultry

Because of the limited production period after the holidays, overall supply is tighter. The availability of breasts in all sizes has decreased. There are fewer and fewer tenders available. The demand for wings has increased, making them more difficult to locate. The market for dark meat is still strong. Complete birds are balanced.

Seafood

On December 22, 2023, a new executive order pertaining to restrictions on the provenance of seafood raw materials was made public. To guarantee appropriate supply continuity for all impacted commodities, we are proactively collaborating with all suppliers. In the Great Lakes, whitefish season is well underway with some excellent catches thus far.

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Produce

Adverse weather conditions in several growing regions continue to play a pivotal role in lower supplies across several commodities, which have caused markets to remain higher and will likely remain through the end of January. In Yuma, temperatures have dropped this week, with much lower daytime and nighttime temps. With these lower temperatures, expect to see some frost in all desert-growing areas. Supplies have remained steady with some quality issues.

Grains

As crude oil moved flat to higher and bean oil moved lower, soybean oil separated from energy. The weather in South America has improved for the soybean crop, the US dollar is stronger, and stocks are up. Higher prices are possible since there are insufficient supplies of soybean oil. Canola markets are steady, whereas palm markets are erratic.

Dairy

The Northwest’s shell egg markets are up this week, while all other markets are down. Block markets are shrinking and barrels are rising. It’s butter time. Prices for January Cream and Culture will be lower as a result of such market modifications.

Beef

Softer tones are beginning to appear in middle meat prices. Ribs and tenderloins are essential commodities to keep selling out, although strips will still be in demand in early 2024 because of their favorable price spread. Rounds and Chucks seem to be exchanging consistently. Because of their limited harvest, grinds are in limited availability.

Pork

Next week, butts moved up once more. This market should continue to be robust due to decreased harvest numbers and strong demand. The price trend for ribs is firmer than anticipated; this is also a result of lower harvest levels. Due to strong retail and export demand, the loin market is still performing better than anticipated. Bellies are still erratic and have increased this week.

Poultry

Because of the limited production period after the holidays, overall supply is tighter. The supply of breasts has decreased. There are fewer and fewer tenders available. The demand for wings has increased, making them more difficult to locate. The market for dark meat is still strong. The demand for whole birds is rising.

Seafood

On December 22, 2023, a new executive order pertaining to restrictions on the provenance of seafood raw materials was made public. To guarantee appropriate supply continuity for all impacted commodities, we are proactively collaborating with all suppliers. In the Great Lakes, whitefish season is well underway with some excellent catches thus far.

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Produce

The southeastern U.S. and Mexico’s growing regions have been experiencing adverse weather conditions, leading to lower yields. Additionally, the heightened national demand during the holiday season is further contributing to the upward pressure on prices, which is expected to persist for the next 3-4 weeks. In Yuma, rain is in the forecast with an estimated rainfall amount of 1-3 inches last week. The amount of rain is not enough to damage the crops seriously but is enough to slow down harvesting, as excessive mud will make it hard for trucks and tractors to get through fields.

Grains

Biofuels and less demand caused last week’s movement in the energy markets downward. This contributed to the decline in the price of soybean oil. A portion of the drop in demand for biofuels was caused by increased use of Canola oil. With ample supply and decreased Chinese demand, palm oil prices remained stable.

Dairy

This week, shell egg markets are closed. Barrels are expanding slightly, while block markets are contracting. Time for butter. There will be some fluctuations in the cost of Cream and Culture in December.

Beef

Buyers’ attention is still focused on tenderloins and ribs due to the holiday. The price of middle-aged meat has been supported by demand. Shortloins and strips are nevertheless valuable, and increased trades have been supported by interest. Chucks and rounds keep getting softer as boxes begin to form and purchasers’ attention wanes. At best, grinds are constant and choppy since packers have different supplies.

Pork

Butts are seeing a little decline in the market after an unexpected increase last week. Given the relative flatness of boneless loins, sideways trading is to be anticipated in the upcoming weeks. Ribs are also exchanging sideways. Their bellies are shrinking quickly because they are still searching for the floor. Trimmings are likewise trading sideways, and demand is stable.

Poultry

During the height of the chicken industry’s growth season, larger birds with greater yields are the outcome. The breasts are beginning to contract. There is availability on tenders. Demand for wings of all sizes has somewhat decreased. The market for dark meat is still strong. The demand for whole birds is rising.

Seafood

The Texas Department of Parks & Wildlife has closed the Texas Gulf oyster beds, which will impact availability. Alaska Red King crab is available, albeit at a premium price. According to reports, Peru reopened its second anchovy season three days ago, although there is still a shortage. The market for shrimp imports is still struggling.