Weekly market report update

Weekly market report update

Date: May 6, 2009


Grocery Overall

Long Grained Milled Rice- gradual increase

Pinto Beans - steady
Durum Wheat - steady

Cheese Overall category update 0
Item Pricing situation Comments
Block Cheese steady Barrels closed at $ 1.0875 and 40# blocks at $1.1525. The weekly average for barrels is $1.0920 (-.0170) and blocks, $1.1570 (-.0210). The CME Group cash cheese market is weak. The barrel price on the cash market fell below the CCC purchase price (support) of $1.10 for the first time since January. Current cheese offerings of regular varieties are at least adequate with loads accumulating at some plants. While some stockpiling of product for fall needs continues, most packaged interest is for short term needs. Retail orders are being prepared for Memorial Day weekend promotions along with a pickup in food service orders from summer vacation locations. Milk supplies available for manufacturing are even to often above year ago levels. In some areas, fat and protein levels in the milk are lower than normal, reducing cheese yields.(Source: USDA Dairy Market News, Week of April 27-May 1, 2009)
Barrel Cheese steady See comments for Block Cheese listed above.

Dairy - Butter Overall category update 0
Item Pricing situation Comments
Butter AA steady Grade AA closed at $1.2300. The weekly average for Grade AA is $1.2270 (+.0175). The cash butter price at the CME Group remains firm and closed the week at $1.2300. This is the highest cash price thus far in 2009 and compares to $1.4350 last year at this time. Churning schedules across the country remain quite active as cream supplies are available to butter producers. Current churning activity is fully sufficient to meet current needs with excess clearing to inventory for future use. Overall butter demand is steady and typical for the period following a holiday. (Source: USDA Dairy Market News, Week of April 27-May 1, 2009)

Dairy - Egg Overall category update 0
Item Pricing situation Comments
Large Egg (Northeast Market) gradual decrease 0
Large Egg (Southeast Market) gradual decrease 0
Large Egg (Midwest Market) gradual decrease 0
Large Egg (South central Market) price decrease 0
Large Egg (Northwest Market) gradual decrease 0
Large Egg (California Market) gradual decrease 0

Dairy - Milk Overall category update 0
Item Pricing situation Comments
FMO Base Skim Class I price increase The Federal Milk Order base Class I skim milk price released on April 17, 2009 is $7.01 for May, up from $6.56 for April.

Poultry - Chicken Overall category update 0
Item Pricing situation Comments
Georgia Dock steady Beginning of seasonal increases and grilled chicken introduction to QSR menus should move market upward
NE Boneless Breast steady Some strength seen as whole bird and front of bird prices firm.
NE Select Boneless Breast steady Some strength seen as whole bird and front of bird prices firm.
NE Wings steady Momentary plateau before prices continue their decline
NE Jumbo Wings steady Momentary plateau before prices continue their decline
NE Tenders steady Steady this week on so-so food service demand
NE Small Tenders steady Steady this week on so-so food service demand
NE Boneless Thigh Meat Special Trim steady At or near their peak, about as much as end users are willing to pay.

Boxed Beef Overall category update 0
Item Pricing situation Comments
Boxed Beef Cutout, Choice steady The Beef grilling season is upon us and annual industry harvest levels will increase into summer. As harvest levels increases some prices within the Beef complex will begin to adjust lower.
Boxed Beef Cutout, Select steady The Beef grilling season is upon us and annual industry harvest levels will increase into summer. As harvest levels increases some prices within the Beef complex will begin to adjust lower.
81% Lean Fine Ground Beef price decrease Expect steady prices at current values during May.
Inside (Top) Rounds - Commodity Trim, Choice price decrease The market should remain generally steady through early and mid May.
Inside (Top) Rounds - Commodity Trim, Select price decrease The market should remain generally steady through early and mid May
Heavy Lip On Rib Eyes, Choice steady Rib meat has been supported and/or featured for Mother's Day feature then Memorial Day. Minor downward price adjustment may occur in the week's ahead
Heavy Lip On Rib Eyes, Select steady Rib meat has been supported and/or featured for Mother's Day feature then Memorial Day. Minor downward price adjustment may occur in the week's ahead
5/up PSMO Tenderloins, Choice steady Retail and Foodservice demand has been limited. Fewer Tenderloins will be available as consumers support Retail Porterhouse and T-Bone advertised features. PSMO Tenderloins prices may begin experiencing price resistance because prices increased so quickly.
5/up PSMO Tenderloins, Select steady Retail and Foodservice demand has been limited. Fewer Tenderloins will be available as consumers support Retail Porterhouse and T-Bone advertised features. PSMO Tenderloins prices may begin experiencing price resistance because prices increased so quickly.
0X1 Strip Loins Boneless Strip Loins, Choice steady Strip Loins prices should rally early in May driven by Retail demand, warmer weather and the outdoor grilling season.
0X1 Strip Loins Boneless Strip Loins, Select steady Strip Loins prices should rally early in May driven by Retail demand, warmer weather and the outdoor grilling season.
Heavy Top Sirloin Butts - Commodity Trim, Choice gradual decrease Prices are at seasonal highs and pre-booked orders have been filled resulting in minor downward price adjustments.
Heavy Top Sirloin Butts - Commodity Trim, Select steady Prices are at seasonal highs and pre-booked orders have been filled resulting in minor downward price adjustments.
Tri Tips, Fat On, Choice price decrease Foodservice and Retail demand is at seasonal highs. With Cinco De Mayo behind us price demands may begin to relax.
Tri Tips, Fat On, Select gradual decrease Foodservice and Retail demand is at seasonal highs. With Cinco De Mayo behind us price demands may begin to relax.
Flap Meat, USDA Choice steady Foodservice and Retail demand is at seasonal highs. With Cinco De Mayo behind us price demands may begin to relax.
Flap Meat, Select gradual increase Foodservice and Retail demand is at seasonal highs. With Cinco De Mayo behind us price demands may begin to relax.
2/up Ball Tips, Choice gradual decrease Low cost Sirloin Steak
2/up Ball Tips, Select price decrease Low cost Sirloin Steak
Boneless Beef Briskets, Choice 0 0
Boneless Beef Briskets, Select steady High volume, forward booked, Retail purchase of Briskets for Memorial weekend has put a temporary bottom into the market. The market has the strength to remain above seasonal and historical prices levels into June
Outside Skirts, Commodity Trim steady Domestic demand remains flat. Export volume is absent from the marketplace.

Pork Overall category update The H1N1 "Swine Flu" concerns are causing buyers to be very cautious on pork purchases. In addition, the potential for export trade disruptions may put a cap on overall demand. If trade restrictions continue the "Spring Rally" we've been talking about may be delayed or may not occur altogether.
Item Pricing situation Comments
Pork Loin Boneless w/Strap price decrease Boneless loins, just like the Bone-In category struggled last week under H1N1 concerns; prices are expected to trade steady over the next few weeks prior to move higher in mid May under tighter supplies; Strap on product is not expected to reach 2008 levels.
Pork Loin Boneless Strap Removed gradual increase Boneless loins, just like the Bone-In category struggled last week under H1N1 concerns; prices are expected to trade steady over the next few weeks prior to move higher in mid May under tighter supplies
Pork Loin 21dn 1/4 in. lgt Bone In gradual decrease Bone-In loins along with other fresh pork cuts struggled last week under H1N1 concerns; prices are expected to trade steady over the next few weeks prior to move higher in mid May under tighter supplies; prices on bone-in loins are expected to peak prior to Memorial day then take a slight move backward immediately afterward
Loin Back Ribs steady Backribs are expected to increase as we move closer to Memorial Day and will hold their values after it as well
Hams 20/23 price decrease Both heavy and light ham values are very soft as buyers remain cautious on overall pork purchases; supplies should begin to tighten by mid May and prices should begin to gradually move upward under these tighert suppliers.
Pork Bellies 14/16 gradual decrease Belly prices were not immuned to the market softness we saw last week; prices are a good value right now and forecasters do believe the risk is weighted to the upside right now.
Pork Butts, 1/4 in. trim 5-10# price decrease Forecasters expect prices to begin to climb as we head toward Memorial day
Spare Ribs gradual increase Prices are expected to trade gradually higher through the middle of May.
Sow 550 & up price increase Prices are expected to remain steady throughout April and move gradually higher toward the end of May; If the H1N1 virus concerns worsen there is a good possibility that producers will begin liquidating sows
Pork Trimmings 42% (Combo Fresh) #N/A #N/A
Pork Trimmings 72% (Combo Fresh) price decrease Seasonal demand for pork trim is expected to pick up significantly; Once the momentum starts prices on both lean and fat trim should continue to increase
Beef Trimmings 50% (Combo Fresh) steady Seasonal demand driven by retail should begin push prices higher
Beef Trimmings 90% (Combo Fresh) steady Seasonal demand driven by retail should begin push prices higher

Seafood Overall category update 0
Item Pricing situation Comments
Domestic Shrimp steady The situation in the Gulf of Mexico is little
changed from a week ago and the market was largely unchanged.
There is still some pressure in larger count shrimp, especially 16/20
count brown shrimp. White HLSO shrimp were steady. PUD’s were
generally steady, with the exception of some weakness on 61-70 count.
Moving on to the supply situation, landings are still brisk, though we
again caution that widespread production has yet to commence in the
region. According to the NMFS, U.S. Gulf domestic shrimp landings
for March 2009 totaled 2.952 million lbs. (headless weight) compared
to 1.014 million in March 2008. This brings the 2009 cumulative total
to 10.963 million lbs., or roughly 52 percent above the same period
last year.
Mexican Shrimp steady 16-20 count Mexican white shrimp continue barely
steady and unsettled with some off erings noted lower, especially for
volume. 21-25 through 36-40 count Latin white shrimp are unsettled
as supplies improve for a fairly quiet demand. Smaller count shrimp
are steady, supplies only adequate.
Asian Blk Tigers steady Some lower off erings are noted on 8-12 count and
larger shrimp. 13-15 and 16-20 count are about steady. Smaller count
shrimp are full steady with some premiums noted; supplies are rated tight.
Vannamei Shrimp (Asian, So Amer,Indian) price increase The market for HLSO shrimp from all areas was unchanged.
Certain sellers have lowered their off erings, especially from Asia, but are
in-line with our quotations.
Domestic Catfish steady Channel Catfish season in China is complete until September. Supplies of catfish fillets held in cold storage are ample to meet market demand. The 2008 season ended with over 23 million pounds of Channel Catfish imported into the US, a 32% increase over the previous season. Swai continues to gain demand in the US, and there is still a pressure on pricing as worldwide demand has changed due to the economic situation. Swai traditionally has held a lower price point than Tilapia- which is currently trending towards lower pricing, and Swai should follow.
Cod steady Double frozen Atlantic and Pacifi c Cod is barely
steady to weak as off erings increase and replacement pricing
moves lower. Single frozen Atlantic and Pacifi c Cod are also
unsettled with a weak undertone.
Pollock steady 0
Salmon Wild/Farm Raised steady Farmed Salmon: The Northeast wholefish market is steady at
listed levels.
The European wholefi sh market advanced; supplies are barely
adequate for an active demand. A few higher off erings are also noted.
The European fillet market is also fi rm. Supplies are barely
adequate for an active demand. A few still higher off erings have
been collected.
The Chilean fillet market trended slightly higher on 2-up fi llets;
supplies are light for a moderate demand. 1-2 pound fi llets, on
the other hand, are unsettled; both higher and lower off erings
and sales have been collected. A few lower off erings are
reported on larger volume sales.
The Chilean Steelhead market remains steady at listed levels.
The West Coast wholefi sh market trended higher on 10-12, 12-
14, and 14-16 fish. Supplies are light on mid-to-larger sized fi sh
amid a moderate to active demand. Smaller wholefi sh, 6-8 and
8-10s are steady for a moderate demand.
Crab steady King Crab: Both the red and golden king crab markets trended
lower on 20 and up crab. Supplies are fully adequate to ample for
a lackluster demand. A few still lower off erings are noted.
AK Opilio: The market continues about steady; a few lower
off erings are reported. Supplies are adequate to fully adequate
for a quiet demand.Canadian Snow Crab: The market is remains unquoted and very
unsettled. New season product is now being off ered and sold;
sizes available are mainly 4s and 5-8s from Newfoundland. Last
season inventory is also readily available in the spot market and
off erings vary from seller to seller.
Scallops gradual decrease There has been much fishing activity since March 1st when the 2009 fishing year started. Over 66% of the fleet has made at least 3 closed area trips out of the 5 allowed this year. Many boats only have 2 closed area trips remaining and 35 open area fishing days. This strong fishing effort will continue with 90% of the fleet having done 4 closed area trips and one third of the 35 open days done by June 15th. On June 15, most boats will converge on closed area # 2 to make the 1 trip allowed. After this 1 trip in closed area 2, the boats will finish their open area days. By early to mid August, 75% of the fleet will be finished with the closed area and open days for 2009.

Landings to date have been mostly 20% U/10's and U/12's and 80% 10/20 count. These sizes have been caught in closed areas. Once the closed area trips are finished, we will see less big ones landed and the majority size will be 10/20's and 20/30's caught from open area days.

Prices to the boats for their catch are basically .50 less than last year at this time. The economy has had some influence, but many buyers have not stepped in yet to make their frozen purchases for the year. Without this segment of large volume buyers stepping into the market, there have been days where there is 100,000 to 150,000lbs of scallops on the auction and the trips have stuggled to be sold. On these days the price have been lower Other days with less landings the prices have been higher.

Prices will likely not get lower. When the buying increases for all during the late spring and then summer, + the large volume guys step in, prices will rise on the remaining/diminishing volume available.

Oil & Shortening Overall category update Soybean Oil markets rallied sharply last week, following Soybeans and other commodities. Strength of recent rallies is to be determined and increased export demand will continue to pressure this year's crops to produce at least at trend lines. The USDA will release updated supply/demand numbers on 5/12, which will contain the first official estimates for the 2009/2010 crop year and should impact nearby pricing.
Item Pricing situation Comments
Corn price increase 0
Soybean Oil gradual increase 0

Bakery Overall category update 0
Item Pricing situation Comments
Winter Wheat (Hard Red) 0
Spring Wheat (Hard Red) 0

Other Overall category update 0
Item Pricing situation Comments
Tuna - skipjack 0