This report represents information for the week ending October 20, 2017.

Supply issues on vanilla are prevalent. Madagascar produces the majority of the vanilla beans.  The major issue was caused by Cyclone Enawo in March when it hit Madagascar.  A total of 70 percent of the vanilla fields in the district of Antalaha have been destroyed

Market is unsettled. Total beef production for last week was down 1.6% compared to prior week, but up 1.6% versus same time last year. Total headcount for last week was 622,000 as compared to 601,000 for the same week last year. Live weights for last week were up 1 lb from prior week, but down 16 lbs form the same time last year. Live prices inched slightly higher coming into this week and are expected to be mostly steady heading into next week. Items for the upcoming holidays are already in the spotlight and helping to spur demand and put upward pressure on some cuts. The Choice grading percentage remains very high and is putting continued pressure on availability of Select and lower grades. Thanksgiving demand is just around the corner and is typically a dull time for beef demand, and this is expected to impact overall demand over the next few weeks.

Grinds- Market is unsettled. The market has seen both ups and downs, and availability is mixed between suppliers. The market typically weakens as we near Thanksgiving.

Loins- Market is steady to firm. The market for PSMO’s and Strips has seen improved demand and putting upward pressure on those cuts. The rest of the market is mostly steady.

Rounds- Market is steady to weaker. Demand has been lighter and putting downward pressure on the market.

Chucks- Market is steady to firmer. Improved buying interest is helping to move additional inventories.

Ribs- Market is firm. Buying demand is greatly improved and availability will be tight as we move closer to the holidays. The high Choice grading percentage is making availability of Select grade very limited.

Market is unsettled. Total pork production for last week was down 0.4% from prior week, but up 9.3% compared to same time last year. Total headcount for last week was 2,516,000 as compared to 2,305,000 for the same week last year. Live weights for last week were even with prior week and even with same time last year. October is National Pork Month, and advertising has been very heavy and helping to move inventories. Demand is expected to weaken due to Thanksgiving and buying patterns shifting over to Turkey items. Exports have been improved, and this has helped to move additional inventories. Live prices have shot higher over the past week as processors look for additional hogs to fill the pipelines.

Bellies- Market is slightly higher. Improved demand coming into this week has helped to move the market slightly higher.

Hams- Market is steady to firmer. Improved export demand combined with improved buying interest for the holidays is helping to put pressure on the market.

Loins- Market is steady.

Butts- Market is steady.

Ribs- Market is weaker. Demand is light.

Markets this week appear to be in a slightly more balanced position compared to the last several weeks. Majority of items trade at current levels with some possibly slightly lower. Head counts and bird weights are still a concern with suppliers as demand typically retreats coming into this time of year. WOGs and whole birds have leveled off as both export and retail ads have tightened inventory on some sizes. Markets currently remain steady. Boneless breasts rate a no better than steady undertone. Demand on tenders has picked up as markets have remained steady with no changes for the first time in several weeks. Both bone-in and boneless dark meat are soft and rated barely steady. Wings are mixed with varying levels from supplier to supplier. Jumbo wings are still at record highs but have come off 0.16/lb. since September. Estimated slaughter ending week of 10/21/2017 is 166.5 million head.

 

Trade has been light for most items, for the exception of both fresh and frozen thighs. Product trades at full market levels. Drums are rated steady to full steady. Tom two-joints are mixed and vary from supplier to supplier. Breast meat, tenderloins, breast trim, and wing meat are all rated steady, with movement seasonal to better. Whole bird movement is picking up with markets remaining steady. Institutional and consumer sized breasts are rated about steady.  

 

Gulf Shrimp- Market is mixed. The market for HLSO Brown and White shrimp is steady to weaker due to good inventories for current demand. The market for PUD’s is firm resulting from more limited inventories, due in part to the recent hurricanes causing disruptions.

Black Tiger Shrimp- Market is steady to firmer. Inventories are limited and putting upward pressure on the market.

White Shrimp- Market is mixed. The market for product of Latin America has seen upward pressure coming into this week due to tightening inventories. Buying demand is improved over prior weeks. The market for product of Asia is steady to slightly weaker. Buying demand has been lighter and putting pressure on the market.

King Crab- Market is mostly steady.

Snow Crab- Market is steady to firmer. Buying demand is improved and has been active this week.

Warm Water Lobster Tails- Market is mostly steady.

North American Lobster Tails- Market is unsettled. Inventories are becoming more limited and putting upward pressure on the market. Contract customers are taking up a good part of current inventories putting additional pressure on availability.

Salmon- Market is weaker. Inventories are good for a dull demand.

Cod- Market is firm. Recent catches have been below expectations and trending more on larger sized fish. This is putting pressure on availability of smaller sized fillets.

Haddock- Market is firm. Demand has been very good and putting pressure on inventories. Catches have been on extremely large sized fish and this is causing tight availability on smaller sizes.

Flounder- Market is firm. Inventories are light for a good demand.

Pollock- Market is steady.

Domestic Catfish- Market is steady.

Tilapia- Market is steady. Total tilapia imports are down almost 13% year to date thru August.

Swai- Market is unsettled. Higher raw material costs as well as additional transportation costs are putting upward pressure on the market. Total swai imports are down just over 4% year to date thru August.

Market is unsettled. The CME Block Market rose slightly this week while the Barrel Market moved both higher and lower. Availability of milk varies from region to region. Milk is still plentiful in the West and Northeast. In the Midwest, milk is less available and production is slower in some plants as a result. Retailers report demand is higher than expected for private label cheese.

 

 

Market is unsettled. The CME Butter Market moved both higher and lower this week. Both domestic and international demand is strong with export orders increasing. Inventories are reported as stable and sufficient for the upcoming holiday season. Production is good.

 

Market is weaker. Retail demand is fair. Promotional schedules are beginning to improve as the holiday baking season approaches. Institutional demand continues to exceed expectations. In food-service demand is best in areas where eggs are features.

 

 

Market firming do to struggling logistics and bio-diesel demand. Chinese demand is strong, and India has set new import records. With foreign and domestic equity markets marching higher, more people are eating out thus demands for oils are higher. Palm oil production is down, and South American weather is not ideal, so U.S. exports are adding to the bullish effect currently on this market.

 

Market mostly unchanged since last week; although, like other commodities, logistics is the new challenge. Wheat, soy, and corn all going to mills now; and with the recent weather issues around our country, trucks are in high demand. Nothing expected to cause this market to make drastic changes in the very near future.

 

 

Major suppliers on frozen potatoes are all taking market increases during the month of November. Input costs, global demand, as well as demand for premium and specialty products are all sighted as the driving force for market increases.