CommodityOne Weekly Market Reports

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Produce

Growing region transitions and past weather events continue to cause lower overall yields and have kept markets higher; however, production is beginning to increase across many commodities, and we will likely see pricing begin to stabilize. Although growers are behind schedule on the mixed vegetables in the Salinas Valley growing region, supplies are beginning to increase, and many markets have declined. However, supplies are expected to remain volatile throughout the month of May.

Grains

The price of soybean oil increased last week. The futures climbed up 220 points on Friday, which saw the majority of the greater trading activity. The main focus was on some weather concerns and some stronger energy, but traders recognized a pricing opportunity and added some long covering. Although production was down, the market for palm oil declined.

Dairy

Shell egg markets have not changed; they have stabilized. The butter and cheese markets are both still stable, but they both have negative undertones. For the month of May, there will be slight price reductions for Cream and Culture.

Beef

While rib and strip business is steady, there are some worries about potential inventory increases. Tenderloins and brisket prices are leveling off, and some packers are displaying sufficient supplies. As processors and the grinding of some round cuts assist to balance supply and demand, chucks and rounds remain constant. Grinds are consistent and want assistance on Memorial Day.

Pork

As anticipated, robust demand is projected to drive this market up through May, therefore butts increased once again this week. The market for ribs has remained stable despite rising demand and surplus cold storage inventory. Due to the release of Memorial Day retail ads, loin prices increased. As expected, fresh bellies decreased but should start to trend upward as supply shifts to processing. Trimmings fluctuated in price.

Poultry

Mother’s Day caused the breast meat to increase. Tenders are also still increasing quickly. The price of whole birds and cut ups rises in response to rising seasonal demand. Wings are largely stable with strong demand. Demand for dark meat is still high.

Seafood

Seafood demand was very high due to Mother’s Day. The 2023 North Atlantic lobster season officially began on May 1. The Canadian Spring Pack, which runs from May 1 to June 30th, is the first season.

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Produce

With Mother’s Day one week away and the lower yields caused by weather events, markets will likely remain higher for the next several weeks. Mother’s Day typically increases demand by as much as 25% as one of the year’s biggest holidays for foodservice. The transition from Yuma, AZ, to the Salinas Valley will finish this week. Markets for the mixed vegetables out of the Salinas Valley growing region saw a slight for most commodities. However, supplies and markets are expected to remain volatile through the month of May due to crops being behind schedule. Growers continue to see quality issues such as yellowing, light fringe burn, and light case weights.

Grains

Markets for soybean oil fell slightly down last week as speculative traders reduced a large portion of their positions. Canola utilization for biofuels has increased to record levels, which lessens the pressure on soybean oil. Soybean and Canola oil pressure caused palm oil to decline, although overall, palm oil reserves are growing on a global scale.

Dairy

Are we at the floor? Shell egg markets are declining once more. Several analysts concur. The cheese market is still weak and declining. With a consistent supply, butter markets stay stable. May is anticipated to see a small decline in the Culture and Cream markets.

Beef

Buyers aren’t rushing to place orders, and inventories are still plenty. Although there is little volume of out-front interest, rib and strip continue to trade steadily. Brisket and tenderloin prices are beginning to level out, and some packers are displaying sufficient supplies. The demand for chucks and rounds remains consistent. Although grinds are at best steady, increased demand is anticipated.

Pork

Expect this trend to continue as supplies to tighten up as strong exports and strong domestic demand continue to drive up the beef markets. With the exception of a yo-yo effect, ribs are largely keeping flat due to excessive cold storage. Retail interest in loins is increasing, but not significantly enough to impact the market much. Although lower, belly sizes are predicted to rise.

Poultry

We are currently in the breast season, with portions of breast for Mother’s Day and catered parties as well as random breast for Cinco de Mayo. The tenders are still the most popular section of the bird, with prices continuing to rise over the past few months. Whole birds are still in high demand, and there are fewer available. The popularity of wings is waning.

Seafood

As Cinco de Mayo just passed and Mother’s Day is next on the calendar, both holidays feature seafood on their menus. The animal that receives the greatest attention on Mother’s Day is salmon. The 2023 North Atlantic lobster season officially began on May 1. The Canadian Spring Pack, which runs from May 1 to June 30th, is the first season.

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Produce

With Mother’s Day two weeks away, combined with the lower yields caused by weather events, markets will likely remain higher for the next several weeks. Mother’s Day typically increases demand by as much as 25% as one of the year’s biggest holidays for foodservice. Due to past weather events, production remains limited in the Salinas Valley growing region. Growers see quality issues like yellowing, light fringe burn, light weights out of Salinas, and some sun-scald

Grains

On the back of negative harvest reports from South America and unfavorable US weather, soybean oil futures rose last week. As the week went on, it did trade lower as a result of trader selling. Canola was lower, but with some snow, rain, and worker strikes, it was predicted to go higher. With limited but improving stock, Palm was higher.

Dairy

The supply of shell eggs is abundant compared to the demand, which has been poor for four weeks. Block/Barrel market declines in cheese prices are still present. Markets for butter are steady. For the month of May, there will be slight decreases in the price of cream and culture.

Beef

Buyers still continue hand to mouth, while some sales at the front are formula-based. Packers continue to emphasize the increasing demand and the anticipated prolonged shortage of cattle supplies. Ranges for trading ribs and strips continue to be stable, and availability is still not a problem. The demand for briskets and tenderloins throughout Mother’s Day and Memorial Day continues to be strong. Rounds and chucks keep coming in steadily.

Pork

Butts are in high demand both domestically and abroad, and their market share is continuing to grow. Although they were seasonal, spareribs were not anticipated to last. St. Louis ribs and back ribs rose as anticipated. Strong export demand for boneless loins is keeping this market afloat. In spite of an abundance of supplies, there is still a healthy market for bellies.

Poultry

Breast meat is staying put. Tender demand is still rapidly increasing. Supply is becoming more scarce for whole birds and cut ups. There is less demand for wings. Demand for dark meat continues to be high.

Seafood

Up to the start of the new season in May, North Atlantic lobster tails and lobster meat will be available for allocation. The North Atlantic Scallop fishery for 2023–2024 got underway on April 1. In the first few weeks, U-12 and U-10 scallops made up more than 60% of all landings.

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Produce

Multiple growing region transitions combined with previous weather events have caused lower overall yields, negatively affecting markets. Lower yields and higher markets are expected for the next several weeks. The overall quality is fair to good, with growers seeing some quality issues such as yellowing, light fringe burn, light weights out of Salinas, and some sunscald. Due to past weather issues, the crops in the valley are well behind schedule.

Grains

As the USDA stated that there had been no change to its WASDE report, soybean oil futures went slightly down last week. With more biodiesel production facilities coming online, the cash values for soybean oil and canola are rising. Due to rising production and pressure from soybean oil futures, palm markets declined.

Dairy

Markets for shell eggs are remain weak and declining. This week, barrel markets sank along with blocks. Markets for butter are steady. For the month of April, there will be slight price hikes for cream and culture. There will be some small declines in the processed egg quarterly adjustment for April.

Beef

The best way to define the market is as “Cautious anticipation.” While buyers are still and to mouth, and packers are still seeing rising cattle futures and costs. Trading ranges for ribs and strips continue to be stable, and availability is still not a problem. Due to their restricted availability and small harvest, tenderloins and briskets continue to exhibit the most price upside potential.

Pork

After making some compromises for a few weeks, butts are getting stronger. This market is anticipated to maintain its current course through Memorial Day. As the supply is beginning to level off and reservations for the summer season rise, ribs also experienced some modest gains. The market for loins is increasing due to domestic demand. Despite some declines, belly measurements increased this week.

Poultry

As Cinco de Mayo and Mother’s Day approach, there is an increase in demand for breasts. Demand for tenders is swiftly increasing. The supply of whole birds and cut ups is becoming increasingly scarce. This week, the demand and supply for jumbo wings were equal. On the open market, little wings are easily accessible. Demand for dark meat is still high.

Seafood

With pasteurized crab meat in red and blue crab on the rise, prices will rise over the summer as a result of a shortage. Up to the start of the new season in May, North Atlantic lobster tails and lobster meat will be available for allocation.

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Produce

Growers continue to deal with the aftermath of adverse weather conditions, which have delayed crops, increased quality issues, and decreased overall yields resulting in market volatility across many commodities. The transition from Yuma, AZ, to Salinas, CA, is underway, and markets continue to see volatility due to yields, quality, and past weather issues. March rains and cool weather have delayed the Salinas season’s start by approx. 10-14 days. Quality issues out of the desert growing region are expected to increase due to increasing temperatures.

Grains

As energy costs rose, so did soybean oil. At this time, South America is harvesting and the U.S. is planting corn and soybeans. Strong exports helped canola futures climb higher. Palm increased due to low production and rising soybean oil prices.

Dairy

Markets for shell eggs are still declining due to weak demand. Markets for blocks and barrels are down. Butter markets are declining, but the general tone is stable. For the month of April, there will be slight price hikes for Cream and Culture. For the month of April, there will be a small decline in all categories for processed eggs.

Beef

As cautious purchasers continue to buy on a tight budget, the market is at a standstill, which is preventing sharp price hikes. Prices for ribs and strips are largely stable, but purchasers continue to be concerned about availability, which limits business. Tenderloins and briskets are increasing due to seasonal demand, but rounds and chucks remain stable.

Pork

Lack of demand on the domestic and overseas markets is causing the butt market to slow down. Before demand resumes in May, this might linger for another week or two. Due to a lack of demand, rib prices are also heading downward. While bone-in loins are displaying weakening, bone-less loins are still powerful. Bellies keep falling because of excess supply in cold storage.

Poultry

Breasts of all sizes are holding. Breasts were low. Demand for tenders keeps increasing quickly. Supply is becoming more scarce for whole birds and cut ups. This week, the supply and demand of wings were equal. Demand for dark meat continues to be high.

Seafood

In both Blue and Red crab, pasteurized crab meat is becoming more prevalent, and prices will climb over the summer as a result of a shortage of supplies. Up to the start of the new season in May, North Atlantic lobster tails and meat will be available for allocation.

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Produce

Past weather issues, growing region transitions, and lower overall yields are expected to affect many markets over the next several weeks adversely. Current quality remains good with most commodities. As mentioned last week, growers still see some cosmetic deficiencies in inconsistent sizing, crop maturity, and leaf discoloration. This will likely impact quality and supply in the short term. Additionally, the warmer temperatures will cause an increase in bug pressure.

Grains

Soybean oil was steady last week, but it began to rise on Friday when the USDA announced quarterly inventories and planting intentions, which showed lower stocks and 1 million acres lost to corn. Canola’s use for biofuel is expanding, propelling this industry higher. Palm rose despite inadequate production.

Dairy

Now that Easter purchases are completed, shell egg markets are declining. Since milk remains available for manufacturing, block and barrel cheese markets are declining. Butter markets remain stable, although there are negative overtones due to excess supply of processed eggs.

Beef

This week’s price increases are being mitigated by extra boxes and cautious shoppers buying hand to mouth. Pricing for ribs and strips, like other cuts, is higher; however, availability continues to offset too big of an increase. Tenderloins and briskets have the biggest potential for growth due to fewer boxes and increasing demand for the upcoming holidays. Chucks and rounds are stable, and grinds are rising.

Pork

Normally, pork butts climb higher this time of year, especially as we approach the spring and summer months; however, the market has decreased this week because to poor demand. Ribs have been flat, and retail interest has declined, keeping this market lackluster. Loins are down, but they should rebound fast. Bellies continue to fall, as they have in recent weeks, and this trend may continue next week.

Poultry

The demand for jumbo breasts has recently decreased. Tender demand is rapidly increasing. Whole birds and cut ups were fairly consistent, although supply is running low. This week, demand and supply for wings were balanced. Demand for dark meat remains high.

Seafood

Lent is now over and larger category supplies are currently stable, but smaller category supplies face seasonal problems. The start of the snow crab season is just around the corner, and prices are predicted to be lower than last year. As new merchandise arrives, any existing inventory will be turned upside down.

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Produce

With persistent weather concerns and increased area transitions, lower overall yields are projected to have a negative impact on numerous markets over the coming few weeks. Supply from the desert producing zone are relatively consistent. Most commodities’ current quality remains high. Farmers notice some cosmetic flaws in the form of irregular size, crop maturity, and leaf yellowing. This will most likely have an immediate impact on quality and supply. Also, the warmer temperatures will increase bug pressure.

Grains

Speculators’ technical selling and a lack of fundamental trade pushed the soybean oil market lower until the end of the week, when it began to recover considerably. This also pushed the Canola and Palm oil prices lower; however, palm production is behind and palm exports are increasing. This market is likely to rebound.

Dairy

As Easter approaches, shell egg markets are beginning to fall significantly. Despite increased supply, the market for block and barrel cheese continues to grow. Butter markets are marginally lower due to a lack of supply. For the month of April, the prices of Cream and Culture will be slightly raised.

Beef

The market tone is becoming more familiar as the week goes. Prices are being mitigated by excess packaging, and demand is steady at best. Ribs are consistent, however availability varies by packer. Strips continue to trade steadily, with packers occasionally lowering pricing to mop up stray pockets. As purchasers continue to buy hand to mouth, chucks and rounds remain stable.

Pork

Butts have climbed somewhat for the coming week, as expected. Butts should get more expensive as demand grows. Ribs are generally steady, but retail interest is currently decreasing. Loins were also impacted, but they should heal quickly. Belly fat has also been declining in recent weeks and may continue to do so.

Poultry

The demand for jumbo breasts has recently decreased. Tender demand is rapidly increasing. Whole birds and cut ups were fairly consistent, although supply is running low. This week, demand and supply for wings were balanced. Demand for dark meat remains high.

Seafood

On April 6th, the Lenten season will come to a close. In comparison to last year, shrimp, salmon, tilapia, pangasius, pasteurized crabmeat, mahi, tuna, calamari, warm water lobster tails, cod, and pollock stocks have all stabilized.

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Produce

Due to weather issues and growing region transitions, lower overall yields are expected over the coming weeks. Additionally, demand is expected to increase as we approach the holidays. The combination of the issues and increased demand will likely cause markets to climb over the next several weeks. Supplies from the desert growing region remain steady, and the overall quality is good. The warm temperatures have helped with product weights. Temperatures are expected to cool off, and no rain is expected. Markets are expected to increase as growers head into the transitions and the Easter holiday pulls.

Grains

The soybean oil market has moved lower again now with less availability in stock, higher demand, and more pressure from several other commodities selling contracts due to the the SVB bank failure. Canola is lower because it competes with strong Canola yields in Europe and Australia. Palm followed the soybean oil trading which has moved that lower as well.

Dairy

The shell egg market continues to grow as Easter approaches. Block and barrel cheese markets are both up due to trading. Butter markets are rising, though they are expected to remain steady. Cream and culture prices are increasing due to non-market cost factors.

Beef

In the current environment, packers are under increased pressure to keep boxes in the marketplace. Ribs are steady, but the availability is sporadic. Tenderloins are steady but require seasonal support. There is a weakening in strip and shortloin prices, but price expectations between buyers and packers remain unclear. Chuck prices are soft, as supply is more in demand. Round prices remain steady.

Pork

The butt market is soft, but it should begin to show signs of life in the coming weeks. Ribs continue to climb upwards as there is anticipation of low availability on light ribs. B/I loins following suit with butts right now as demand has waned. Loins with no bones remain flat. Even with abundant cold storage, bellies are decreasing and are anticipated to fall more in the coming weeks.

Poultry

Dark meat is still going up. Jumbo breasts are still in high demand. Tenders are catching up to breast meat as the supply gets smaller. This week, demand for whole birds and cutups increased. Due to the fact that additional processor freezers are full, jumbo and medium wings have an excess supply. The supply of small wings is smaller than that of jumbo or medium wings.

Seafood

Many seafood types including Salmon, Tilapia, Pangasius, Pasteurized Crabmeat, Cod, Shrimp, Mahi, Tuna, Calamari, Warm Water Lobster Tails, and Pollock supplies are all finally stabilized compared to last year.

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Produce

The total yields of numerous commodities have been impacted by ongoing weather problems and transitions, which will have an impact on markets over the next weeks. The production of various commodities has benefited from the desert growing region’s warmer daytime and nighttime temperatures. Although the quality of the desert’s growing is generally good, the recent weather has caused some quality problems, including blisters, epidermal peeling, growth cracks, pin rot, fringe burn, and mildew.

Grains

Soybean oil increased last week despite USDA data showing a 7% decline in supplies due to rising demand for biofuels. The majority of canola stock prices are rising, which can present a buying opportunity. Demand for palm is higher due to strong demand and flooding in Indonesia and Malaysia, which results in decreased production.

Dairy

Retail and foodservice demand for shell eggs is strong, and markets are up. Block markets are down, and cheese barrel prices are up. Butter markets are down this week, and pessimistic tones are still there. Cream and culture prices have been adjusted for March owing to non-market cost factors.

Beef

Demand throughout the majority of the animal is still sluggish. Ribs keep going steadily. Inventory of tenderloins has increased and they are beginning to exhibit weaker tones. Short loins and strips are starting to have weaker tones. Chucks are seeing some resistance, but rounds are trading more favorably and lean cutting demand has increased. Grinds continue to be steady.

Pork

The demand for B/I and boneless butts is increasing, and the trend is up. While there is still a demand for these products in the retail market, boneless loins also climbed up. Also, the demand for larger-sized ribs has increased as the supply of small ribs becomes more scarce. There seems to be some relief on trimmings as we prepare for the following week. But, the strength in fresh bellies may only last for a short time.

Poultry

This week once again, the back of the bird has the most demand. Large breasts are still in high demand. Tenders are in high demand as the quantity of breast meat decreases. This week, whole birds and cut ups were roughly equal. Jumbo and medium wings are in surplus since freezers from additional processors are already filled. Sturdy supply on small wings.

Seafood

Lent will last until April 6th so be prepared for the increase in volume. All markets show double-digit increases during Lent. As we haven’t seen a genuine Lenten season in three years due to the pandemic, keep in mind that your systems might not be tracking the rise in demand. This year, Lent began sooner than it did last year.

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Produce

Growth region transitions, rains, and milder temperatures have caused lower yields and will certainly continue for several weeks. Moreover, rising markets will be caused by a combination of lower yields and a rise in overall national demand. For the majority of vegetable exporters, the transfer from Yuma, Arizona, to the Salinas Valley, California, growing zone will take place in 3–4 weeks. The output of most commodities has benefited from the increased daytime and nighttime temperatures in the desert growing zone. Growers continue to observe epidermal peeling and fringe burn as a result of the colder recent weather. Quality is generally good to extremely good.

Grains

Soybean oil had a decline in price and a period of sideways trading due to a lack of recent news in the market. Canola futures prices were higher, and it’s said that canola is being used more and more in biodiesel. Palm oil prices rose as a result of increased demand and decreased supply as a result of flooding in Malaysia.

Dairy

This week, the price of shell eggs increased once again; California, however, is down because retail demand is still sluggish. The cheese market is still stable or slightly declining. Butter Markets improved marginally this week, gloomy tones still present.

Beef

Demand is consistent this week. Although there are occasionally inventory pockets, ribs continue to be produced steadily. Tenderloin prices are holding constant, with low supply acting as the main driver. Strips and shortloins are still popular, but packers and purchasers continue to charge different prices for them. Customers are having some trouble purchasing Chucks.

Pork

Butts are once more on the rise as anticipated domestic demand remains high. As the temperature gets warmer, ribs are also rising. The St. Louis-style ribs see the most movement. Moreover, bone-in and boneless loins are in demand due to resurgent retail interest. Bellies’ downward spiral is exacerbated by an excess of cold storage.

Poultry

Once again, this week’s biggest demand is in the back half of the bird due to strong retail demand. The desire for jumbo breasts is still strong. With the supply getting tighter, tenders are overtaking breast meat. This week, the ratio of whole to sliced birds was largely equal. Due to overstocked processor freezers, jumbo and medium wings are available in surplus.

Seafood

In comparison to last year, supplies of shrimp, salmon, tilapia, pangasius, pasteurized crabmeat, mahi, tuna, calamari, warm water lobster tails, cod, and pollock have all steadied. The majority of the fillet sizes from the Alaskan pollock captures (so far) are 2-4 oz, with a few 4-6 oz.