CommodityOne Weekly Market Reports

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Produce

We have continued to see national demand increase as the new school year begins resulting in slightly higher markets across many commodities. We should continue to see this trend over the next few weeks. Supplies continue to remain good across most commodities, but iceberg supplies remain light.

Grains

Weather has improved in the growing region for soybeans, so soybean oil futures fell last week; although, biofuel demand is high keeping volatility high. Canola is lower with pressure from lower soybean oil and European Canola. Palm also moved lower with pressure from soybean oil, but also due to increasing stocks.

Dairy

Shell Egg markets mostly steady, however some softness continues in California markets. Cheese markets rally this week but could stay firm for next week. Butter markets are steady. Cream and Culture pricing will be flat to slightly up depending on categories listed below.

Beef

Market activity is mixed, as reduced harvest, reduced demand, and higher cattle prices appear to be impacting market confidence. Middle meat is steady. Tenders and ribs have firmed. Interest is flat on loin cuts but may garner attention w/ the rib showing gains. End cuts continue to show a steady balance. Grinds continue to reflect mixed offerings and a steady tone.

Pork

Bellies continue to be the driver of gains, while the remaining primal’s are seeing declines. Butts are continuing their race to the bottom, with loins following suit. Ribs continue to trend downwards and should continue on that trend until we get closer to Labor Day. Green hams continue to trend up with strong exports to Mexico.

Poultry

Hot weather in the south continues to affect bird weights. Breast markets have started to strengthen as supply has tightened. Tenders are strengthening and are still in short supply. Whole birds are mostly even. Wings of all sizes are in high demand and supply is very tight. Dark meat is steady on solid demand.

Seafood

Snow crab season is closing mid-August and pricing is firming up. Any remaining inventories of Russian King Crab should be depleted. Operators looking for replacements should look to S. American Santolla Crab and Golden King Crab as a sub. Imported shrimp inventories are at equilibrium.

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Produce

National demand continues to see an increase and is expected to pick up considerably in the next few weeks as schools resume, which will likely cause a bump in markets over these few weeks. Temperatures in the Salinas Valley have declined to normal temperatures for this time of the year.

Grains

Canola was flat with farmers selling seeds. Soybean futures were nearly 6% higher again last week as hot weather persists. Palm followed the soybean oil market.

Dairy

Butter and cheese markets both continue to increase, with more bullish overtones for the week. Shell egg markets remain steady. Cream & Culture pricing will be flat to slightly up.

Beef

End cuts continue to show a steady balance. Cattle markets are focused on calf prices to build incentives for herd expansion. Droughts and record-high hay prices are a problem.

Pork

Ribs and loins continue to decline. Butts are still down. Bellies, hams, and trimmings continue to increase.

Poultry

Bird weight is being kept down due to high temperatures in the South, which is limiting production. Expect a tight-wing and tender market to continue. Dark meat is steadily in demand. Supply is tight on wings. The breast market has started to strengthen as supply has tightened.

Seafood

Snow crab season extended in multiple areas into August due to the full quota not being caught.

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Produce

We are beginning to see increased demand, and will continue to increase as schools resume in two weeks. Furthermore, we will continue to see markets rise due to the weather effects (rain, cooler and hot temperatures) in several growing regions affecting yields.

Grains

Futures for soybean oil increased once more. Numerous market pundits have predicted that this market is close to its peak and is about to undergo a slump. Weather issues and the consequences of the collapse of the grain deal between Russia and Ukraine led to poor crop scores. Canola is up because of the dry, hot weather in Canada, while palm is moving because of the demand for soybean oil.

Dairy

Markets for shell eggs are stable nationwide; those for cheese and butter are rising as a result of rising demand and constrained supply; those for cream and culture will only see slight price rises in July; and those for processed eggs will experience a decline.

Beef

The industry is waiting to see the effects as the weather continues to heat up across the nation. Select grade continues to struggle, while middle meat interest is considered as steady, and packers are working to keep the price gap between CAB and Choice. End cuts seem to have achieved a stable supply-demand equilibrium. Grinds may profit most in the next weeks as a result of the reduced harvest; sadly, mixed offers are maintaining the consistent tone.

Pork

As is customary during the Fourth of July holiday, butts are still declining week over week. The rib complex has decreased as anticipated after being largely flat the previous few weeks. This week, there were minor declines in boneless loins but no changes in bone-in loins. Large cold storage supplies are causing a surge of bellies, hams, and trimmings.

Poultry

As supply has become more constrained, breast markets have begun to strengthen. Tenders are getting stronger but are still hard to come by. Most whole birds are even. All sizes of wings are getting stronger, therefore supply is likely to become constrained. Due to strong demand, dark meat is stable.

Seafood

Soft demand across the nation for frozen seafood has resulted in prices plateauing as a result of warehouses’ excess stock. Due to a delayed start to their season, the snow crab season in Newfoundland and Labrador has been prolonged until the end of July, although costs are increasing for all snow crab.

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Produce

Overall, markets were somewhat steady as demand was slightly lower than anticipated across most commodities but is expected to increase in three weeks when schools begin. Due to the weather effects (rain, cooler and hot temperatures) in several growing regions affecting yields, we will likely see markets begin to rise. Weather continues to increase in the Salinas Valley, helping increase the maturity rate of the crops.

Grains

The reported reduced soybean oil stocks and the bad crop scores caused soybean oil futures to surge upward once again last week. The price of soybean oil futures has increased by approximately 30% in recent weeks. With the weather being hotter and dryer than usual, canola seed futures climbed higher once more. Markets for palm oil declined as stocks rose.

Dairy

Shell egg markets are stable due to stable demand. California eggs are still marginally declining. Due to rising demand, the markets for cheese and butter are also up. For July, there will be slight price hikes for cream and culture. A drop in processed eggs will be seen in July as avian influenza is not a concern at this time.

Beef

The unpredictability of the market continues to be the balance between weekly harvest and demand. As select grade continues to deteriorate, middle meats like ribs, strips, and tenders are attempting to maintain a balanced price between CAB and Choice. End cuts, chucks, and rounds seem to be in a precarious position as purchasers have met their needs and are now watching to see how the market develops.

Pork

Butts continue to decrease week over week. Although remaining flat, the rib complex is beginning to slope downward. Similar to the ribs, loins had slight decreases but remained flat. Despite growth, the price of bellies, hams, and trimmings continued to decline due to abundant cold storage supply.

Poultry

As supply has become more constrained, breast markets have begun to strengthen. Tenders are still scarce and continue to hold. Most whole birds are even. Smaller wings are equally as plentiful as jumbo and medium wings. Due to strong demand, dark meat is stable.

Seafood

The frozen fish business has not experienced any significant occurrences, thus the price of raw materials has remained constant month over month. Frozen food warehousing, which has a significant impact on pricing, is still at capacity and available space is being sold for a premium. Compounding the problem is the soft demand for these goods.

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Produce

Overall demand is expected to rise over the next few weeks, which will likely keep markets active due to current weather effects (rain, cooler and hot temperatures) in several growing regions affecting yields. Weather is warming up in the Salinas Valley, which is helping increase the maturity rate of the crops.

Grains

Soybeans oil futures soared, but settled almost flat on the week; prices are still very high and are expected to move higher. The USDA reported soybean oil inventories lower than expected. The good news is that the US got some rains. The bad news is that the canola has moved up as they are facing drought. Europe is facing drought as well.

Dairy

The shell egg market is stable as the market prices are stable; California only experienced a slight decrease. The cheese and butter market is turning bullish, led by European markets. The prices of cream and Culture are increasing slightly in July.

Beef

The tone is weak and there’s a lot of pressure for packers to figure out how to balance demand with weekly harvest figures. Ribs and tenders continue to struggle as demand slows down into the tail-end of summer. Strips continues to surprise. More on CAB vs. Choice. Limited supply continues to play a big role here. End cuts, chucks and rounds are starting to weaken as more boxes come on the market.

Pork

Butts decreased this week. Rib complex remains relatively stable but could see an increase in fresh ribs. Loins had slight gains driven by retail demand. Bellies gained with Prop 12 build-up as anticipated but remain flat year-on-year due to heavy cold stock. Hams & Trimmings gained this week.

Poultry

Breast market is mostly balanced. Tenders are stable and still in shortage. Whole birds are balanced. Jumbo and mid-sized wings are increasing while small are balanced with plenty of supply. Dark meat stable on solid demand.

Seafood

The scallop season has had mixed results when it comes to raw material sizes. The supply of smaller sizes is tighter than the supply of larger sizes. The availability of fish in Great Lake is variable as warmer weather pushes fish deeper into the lake. The strong stock in US warehouses has been weakening the market on a number of frozen products.

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Produce

Continued weather issues (rainfall, cooler temperatures, and hot temperatures) in Mexican, Peruvian, and U.S. growing regions have caused lower overall yields adding pressure to many of the markets. Cooler temperatures in the Salinas Valley have caused production to decline across many commodities. Additionally, growers see minor quality issues such as misshapen heads, sclerotinia, mildew, wind damage, tip burn, and yellowing, which have aided in the production loss. Fortunately, the weather is expected to increase over the coming weeks.

Grains

The futures market soared when the USDA released its stocks and acreage report. The weather is still a problem, and less soybeans were planted this year as the crop score continues to decline. Along with soybean oil, canola is also experiencing a great deal of weather-related problems. Although palm oil moved alongside soybean oil, the situation may improve as a result of falling shipments.

Dairy

Markets for shell eggs are flat, with the exception of California, where they are beginning to decline quickly. Butter markets are marginally up, but cheese markets are falling. For July, there will be slight price hikes for Cream and Culture.

Beef

Tenders are losing control over the balance between supply and demand; the rib and strip support steady commerce. Reduced bids are being produced via end cuts, chucks, and rounds. Due to the quantity of the present harvest, “small” cuts like teres majors and clod hearts are scarce. The demand is maintaining prices while thin meat supplies are still limited. Despite the fact that this holiday has historically been a big one for grinds, the trend continues to be uninteresting.

Pork

The market showed gains for butts. The rib complex is still holding fairly steadily, but fresh ribs may show some upward movement. The forthcoming holiday and retail demand supported the minor gains in loins. Prop 12 planned build-up resulted in improvements for belly prices, but they continue to decline annually because of the abundance of cold storage. Hams remained largely unchanged. Trimmings decreased slightly week over week.

Poultry

Breast markets are well distributed and well-supplied. Tenders are still scarce and continue to hold. Most whole birds are even. Smaller wings are equally as plentiful as jumbo and medium wings. Due to strong demand, dark meat is stable.

Seafood

Unofficially, Canada’s snow crab harvesting season has come to an end. The prices are under increased pressure to rise going future, particularly for the higher sizes. This season, all of the quotas for the Gulf of St. Lawrence have been reached, however just 50% of the quota for the Newfoundland fishery has been reached thus far.

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Produce

Weather issues (rainfall and extremely warm temperatures), lower yields, and higher overall demand have caused many markets to continue an upward trend. The Salinas Valley continues to see relatively steady supply with overall good quality across most commodities. Growers see some quality issues such as mildew, tip burn, cupping, and slightly lighter weights.

Grains

Futures experienced a severe decline at the beginning of the week, but they recovered and finished the week at 1% higher. This resulted from a biofuel mandate announcement by the EPA. However, the growing region’s dry conditions helped futures recover. Palm and canola both went in the same direction as soybean oil.

Dairy

All of the country’s shell egg markets are steady, with the exception of California Mediums, which are down.06/dz. Although somewhat lower, cheese markets are anticipated to increase. Markets for butter are steady. For July, there will be slight price hikes for Cream and Culture.

Beef

Although tenders have lost support and are losing the balance between supply and demand, the rib market is still stable. Stripes are getting tighter as limited inventories are continually replenished. Although there is still a continuous demand for value reductions in the close-in shipping windows, out front asks have sadly not increased. Grinds are firm.

Pork

The vast majority of the primary marketplaces increased due to the 4th. Butts experienced yet another large gain as expected. Due to availability issues, St. Louis ribs rose more than the other cuts. Along with the rise in retail demand, loin prices also rose. Trimmings and bellies are moving up as planned.

Poultry

Since it was the Fourth of July holiday, there was a high demand. Breast supply is still plentiful. This week’s bids remain stable. The market for whole birds is still very strong. There is a high demand for jumbo wings. Small and medium wings are remaining constant. Strong demand is still being seen for dark meat, particularly for thighs.

Seafood

The in-shore spring fishing season in Louisiana ended on June 26 and won’t resume until August. Market weaknesses for imported shrimp are still present. This week, several sizes of black tigers and whites have continued to shrink. Mahi-mahi market stability is increasing as surplus supplies are being consumed.

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Produce

Showers and severe weather in the southeast have harmed corps in South Georgia and we are seeing some shorts and pro-rates on a few categories due to delays with the most severe being corn. Markets will be unstable through the 4th of July at minimum on bell pepper, cucumber, corn, and squash. Tomatoes in the east are short as Florida and South Carolina wrap up for the season and transition is underway to Tennessee and North Carolina.

Grains

With the hot and dry weather continuing, soybean oil prices increased by another 10% last week. The market is also being driven upward by biofuels, and merchants have switched from being sellers to becoming purchasers. The dynamics for canola oil are the same as for soybean oil. Markets for palm oil are growing as a result of weaker Malaysian currency.

Dairy

Markets for shell eggs are stagnant, yet they are still growing in California. Although markets for cheese are still declining, a recovery is anticipated. Despite a minor decline in milk markets, demand is rising. The cost of cream has risen a little.

Beef

Limited rib, strips, and tenders are still available, and sporadic stock replenishment is being done. As long as there is demand for value cutting, end cuts remain constant. Due to little supply and unexpectedly high consumer demand, thin meats remain popular. Grinds are firming, trim costs are remaining largely stable, and availability has begun to improve.

Pork

Unexpectedly, butts increased throughout the following week. Many of the primal markets are rising as a result of declining harvest numbers. The week may see some sideways trading for ribs, which are somewhat lower. Since retail demand has decreased, loin prices are also declining. Trimmings and bellies are holding up reasonably well.

Poultry

Breast supply is still plentiful. The most sought-after offering is still tenders. The market for whole birds is still very strong. Demand for wings of all sizes is stable and rising. Strong demand for dark meat continues to exist, especially for thighs and legs.

Seafood

The lobster season for the Canadian Spring Pack will finish on June 30. The season didn’t deliver as much as was anticipated. In general, the mussel supply appears to be constant during the coming 12 months. The demand for frozen sockeye has decreased. To reduce the inventory for 2022, the product is being discounted.

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Produce

Showers and severe weather in the southeast have slowed down or delayed harvesting holding some markets higher this week. We are seeing a mixed market on some commodities.

Grains

Increased use of refined soybean oil for biofuels and a bad harvest score compared to the 5-year average last week both contributed to soybean oil futures prices skyrocketing. As a result, the price of canola rose, but the price of palm only marginally increased due to stable supply and lower demand.

Dairy

California’s shell egg markets are stable but growing. This week’s cheese markets are higher, but there are still some negative signs. This week’s butter markets declined due to a robust supply and subpar exports. Although there is plenty of cream available, the price is rising somewhat.

Beef

Packers are under pressure due to a small harvest, which has constrained availability. Packers only have one choice due to the high cost of cattle, thus they must continue to demand higher prices for their boxes. Due to the holiday, rib, strips, and tenders remain restricted. End cuts are still attracting purchasers’ attention as long as value cuts are still in demand. Upward, the thin meats continue. Grinds are unpredictable.

Pork

Unexpectedly, butts increased throughout the following week. Fewer harvests are being made, which is raising prices in several basic marketplaces. The week may see some sideways trading for ribs, which are somewhat lower. Since retail demand has decreased, loin prices are also declining. Trimmings and bellies are holding up reasonably well.

Poultry

Breasts in the jumbo and medium sizes are plentiful. In the market, bids are still quite competitive. The market for whole birds is still very strong. All sizes of wings are consistent, but demand is rising. Strong demand for dark meat continues to exist, especially for thighs and legs.

Seafood

It doesn’t seem like the entire quota will be caught as the snow crab fishing season is coming to an end. Costs are increasing. The domestic shrimp season has begun, but landings have fallen short of forecasts while prices have decreased.

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Produce

As mentioned last week, the weather has remained relatively good in many of the growing regions, which has helped increase overall yields, which is fortunate because growers are beginning to feel an increase in overall national demand as we enter into the summer months. Supplies and quality continue to improve on most commodities out of Salinas Valley growing region.

Grains

Due to worries about the hot and dry weather, soybean oil futures experienced a sharp decline early in the week before recovering toward the end of the week. Trading was quite erratic. The price of canola oil is starting to rise as the use of biodiesel rises. The week started out lower for Palm as it went in the same direction as soybean oil, but it ended out higher.

Dairy

Markets for shell eggs are stable; slightly declining in California. Due to a slowing in demand, cheese markets are down this week. Even though the butter market is marginally up, the near term outlook is still gloomy. For June, there will be slight price hikes for Cream and Culture.

Beef

To stay in line with the cost of cattle, packers are being forced to charge greater rates for their products. The scarcity of ribs, strips, and tenders has driven prices up; nonetheless, packers are still having trouble attracting customers since consumers are still wary. End cuts are still attracting purchasers’ attention as the market for value cuts grows. There is steadiness in grinds still.

Pork

Due to domestic and export demand, butts were comparatively stable. As anticipated, boneless loins are exhibiting the typical seasonal weakening caused by a decline in retail demand. Ribs are predicted to trade sideways until the end of the month and are expected to drop for the following week. Due to fewer harvests, bellies saw some slight rises, but cold storage stocks remain good.

Poultry

The demand for portion breasts is great, and there is a steady supply of jumbo breasts. In the market, bids are still quite competitive. The market for whole birds is still very strong. All sizes of wings are consistent, but demand is rising. Strong demand for dark meat continues to exist, especially for thighs and legs.

Seafood

The North Atlantic Scallop fishery for 2023–2024 got underway on April 1. Almost two months into the new fishing season, we have already caught 6 million pounds of the anticipated 20 to 22 million. June 30 marks the end of the Canadian Spring Pack season. Although the season has gotten started to a slower than usual start, it is anticipated to take up in June.