CommodityOne Weekly Market Reports

Alerts & What’s Trending

• Fresh Solutions: The Key to Produce Management
• By the Numbers: Breaking Down Q1 at QSRs
• President Biden Vetoes Joint Employer Legislation
• 3 Tips to Maximize Every Square Inch of Your Kitchen
• A Tight Labor Market: The New Normal

Produce

Unfavorable weather conditions across various growing regions, including Florida, Mexico, and California. These adverse conditions have significantly impacted several commodities, leading to reduced yields and subsequently causing an increase in market prices. All wet veg items will be shipped from the Salinas Valley as supplies are increasing for most commodities and the quality continues to improve. However, romaine and iceberg supplies remain slightly below budget due to cooler temperatures and quality issues such as anthracnose and mildew. Additionally, we are seeing lighter weights and head sizes.

Grains

Soybean oil had a minor increase last week. The harvest in South America is almost over, but there are reports that Argentinean strikes are delaying exports. The US’s wet weather has hindered planting, but it’s not a serious problem. Soybean oil prices are down. Concerns about output are tight for Palm. Soybean oil is leading the way in canola.

Dairy

The market for shell eggs is collapsing, and demand has decreased. Block and barrel sales are steadily rising. There have only been nine loads appearing on the spot market so far this week, down from 71 three weeks ago. Butter producers continue to accumulate large butter inventory while managing hectic production schedules.

Beef

Demand is not keeping up with supply in the complex. Owing to seasonal demand, the best cuts include brisket, top butts, tenderloins, and short loins. Thin meats, strips, and ribs keep slipping in popularity. Bid pressure is coming from end cuts, insides, and chucks. Because of the holidays and grilling weather, demand for grinds has increased.

Pork

The weak demand for B/I butts last week caused the market to slightly decline. Boneless buttocks are growing more and more popular because of the continuous increasing demand. Ribs are becoming more and more popular as grilling season approaches. Pork is being promoted in retail ads, increasing market share. Bellies are erratic again, but they will settle over the course of the following week.

Poultry

Cinco de Mayo drove the demand for random breasts. The demand for wings has increased. There is a high demand for tenders, yet they are still the hardest to locate offering. The desire for dark meat is still high. The majority of whole birds are balanced.

Seafood

Markets remain stable from week to week. The seafood industry is preparing for the summer season and updating their menus in anticipation of the major holidays.

Alerts & What’s Trending

• PROMPT LIKE A PRO: How ChatGPT Can Boost Restaurant Leaders’ Productivity
• Fresh Solutions: The Key to Produce Management
• How Much Price is Too Much Price for Restaurant Customers?
• Smart Lockers and the Rise of Contactless Restaurant Takeout
• Submit for the 2024 QSR 50

Produce

All wet veg items will be shipping from the Salinas Valley as supplies increase and quality improves. As mentioned previously, due to the abundant rainfall in California, farmers are witnessing a rise in anthracnose, a fungal infection that has resulted in reduced yields of iceberg and romaine lettuce. As a precautionary measure, harvesting teams are trimming the products to alleviate these concerns, resulting in lighter case weights than usual. Overall most commodities are seeing a decline in markets. However, the romaine and iceberg markets remain higher due to quality issues. The avocado inventory in the US is significant, and Cinco pulls are commencing. Due to recent market volatility, strong Cinco promotions are not as guaranteed as during the Super Bowl.

Grains

Due to favorable planting conditions in the US, strong harvest reports from South America, and rising soybean oil supplies, soybean oil futures saw an almost 5% decrease last week. Canola futures in California decreased in tandem with the price of soybean oil, and exports are minimal. Because soy prices are rising, palm is finally losing ground.

Dairy

The market for shell eggs is collapsing, and demand has decreased. Over the last four weeks, cage-free supply have increased by 22.2%, despite the avian virus causing major production interruptions. Block and barrel sales are steadily rising. Producers of butter report a decline in sales of both salted and unsalted butter.

Beef

As long as buyers use caution and keep their buying windows closed, tenders and ribs will remain tender, with equally applied pressure to both butts and strips. Buyer pressure on bids continues to impact chucks, insides, and end cuts. With the growing harvest, there seems to be less of a drive for lean meats. Grains are still mixed because of a fluctuating supply and a predicted increase in demand.

Pork

Butts are still rising more quickly than expected. As the holiday draws nearer, the demand for butts is only going to rise. Because of the current slow demand, ribs will be flat next week. Strong exports and retail interest are driving up loins as well. Bellies are still in high demand, and the market is still unstable.

Poultry

This week, breasts leveled out. The demand for wings has increased. There is a high demand for tenders, yet they are still the hardest to locate offering. The desire for dark meat is still high. The majority of whole birds are balanced.

Seafood

Prices have increased despite food service revenues being steady during the Lenten season due to rising labor, energy, and other operational costs. It will be difficult to maintain sales throughout the year as a result. Shrimp sales are projected to be stimulated by the anticipated summer demand rise following Lent.

Alerts & What’s Trending

• A Consolidated Guide to Foodservice Master Distribution Agreements
• California’s Fast-Food Wage Bump Casts Wide Pricing Impact
• Donating Leftover Food and Reducing Food Waste in the Restaurant Industry
• Despite Advances in Technology Aimed at Restaurant Sustainability, Food Waste Remains a Major Problem
• How Restaurants Can Better Navigate Disruption Using Data

Produce

Adverse weather conditions, drought, and prolonged El Nino/La Nina effects continue to persist, resulting in decreased production and higher market prices for different commodities. The escalated market prices are expected to endure for the upcoming weeks. The transition from Yuma, AZ, to Salinas Valley, CA, is complete, and all wet veg items will be shipped from Salinas Valley. The overall quality has continued to improve.

Grains

Because of favorable planting conditions in the United States, a high harvest in South America, and a decrease in overall demand, soybean oil was less. The weekly average of palm oil increased, but it dropped sharply on Friday due to the soybean oil trend. Canola also had a turbulent week due to a decline in soybean oil.

Dairy

The markets for shell eggs are all flat, and demand is declining. Except for X-Large and Large, the markets in California and the Northwest are flat. Block and barrel sales are steadily rising. Butter has an issue with Demand for domestic butter varies around the country.

Beef

The amount of market inventory keeps reducing packers’ capacity to hold onto or raise pricing. Tenders and ribs still exhibit discounts. Top butts and strips are being dropped. Packers are discounting, and end cuts, insides, and chucks seem to be following market trends. Thin meats benefited from a reduced harvest, but grinds don’t because of sluggish retail demand.

Pork

Due of growing demand, both boneless butts and B/I will be moving up next week. The market is rising due to the increased demand for ribs. Retail advertisements are generating greater action in loins, which will lead to a robust market. As the weekly demand for fresh bellies rises, belly trends are also increasing. Trimmings have increased in line with the general pork outlook.

Poultry

As May approaches, when breast season peaks, breasts have begun to stiffen. The market for wings is balanced. There is a high demand for tenders, yet they are still the hardest to locate offering. The desire for dark meat is still high. The majority of whole birds are balanced.

Seafood

Because landings are much lower now than last year, the North Atlantic lobster business still faces supply issues for lobster meat and tails. The need for live lobsters keeps making it difficult for processors to produce frozen goods.

Alerts & What’s Trending

• Supply Chain Optimization with Consolidated Concepts
• Buyers Edge Platform Announces $425M Preferred Equity Investment Led by General Atlantic Credit’s Atlantic Park Fund, Alongside Blackstone Tactical Opportunities and Morgan Stanley Tactical Value
• How One Growing Restaurant Chain is Capitalizing on a Large Menu
• Quick-Service Restaurants Feel Traffic Woes to Begin 2024
• On the Road to Relief: Restaurant Trends and Opportunities to Watch

Produce

Unfavorable weather conditions, drought, and prolonged El Nino/La Nina effects persist, leading to reduced production and increased market prices for various commodities. The elevated market prices are anticipated to persist for the next several weeks. The transition from Yuma to Salinas in California and Arizona is nearly finalized, with Yuma operations wrapping up by the conclusion of the upcoming week. Beginning the week of 4/22, all wet veg products will be shipped from the Salinas Valley, while a small number of shippers will continue to operate from Huron for the subsequent two weeks. Supply and quality are on the rise, resulting in stable to slightly lower prices for lettuce and romaine in the markets. However, we anticipate pricing to remain elevated throughout the transition period.

Grains

Increases in energy, rival vegetable oil kinds, and stocks all contributed to the previous week’s increased soybean oil prices. Considering the ongoing manufacturing problems, palm was higher. Canola increased in value when farmer seed sales decreased.

Dairy

The markets for shell eggs are all flat, and demand is declining. The Northwest and California markets are struggling. Although avian influenza has been detected in US dairy cows, it is not yet severe enough to cause production losses. Demand for contracted cheese is stable, whereas demand for spot cheese is stable to increasing. There is a mixed demand for butter domestically.

Beef

The market is still not rising. Tenders and ribs still exhibit discounts. Top butts and strips are hanging in there. Chucks, end cuts, and insides seem to be simple to locate, and packers are driven vendors. Thin meats have benefited from the lower yield; grinds are still appearing and indicate some market pressure.

Pork

Due of growing demand, both boneless butts and B/I will be moving up next week. The market is rising due to the increased demand for ribs. Retail advertisements are generating greater action in loins, which will lead to a robust market. As the weekly demand for fresh bellies rises, belly trends are also increasing. Trimmings have increased in line with the general pork outlook.

Poultry

The market for breasts has begun to decline, and more are becoming accessible. The market for wings is balanced. There is a high demand for tenders, yet they are still the hardest to locate offering. The desire for dark meat is still high. The majority of whole birds are balanced.

Seafood

The Pacific Halibut season has begun, and while whole fish prices are now higher, it is anticipated that they will decrease over the next few weeks. The supply of lobster in the North Atlantic is still decreasing, and prices are rising. Due to increased supply, warm water lobster prices have remained stable and have not grown as anticipated.