Market Report

BEEF

The market is steady to firmer. Total beef production for last week was down 2.6% versus the prior week and down 1.7% compared to the same week last year. Year to date, total production is down 4.6% compared to the same timeframe last year. Total headcount for last week was 625,000 as compared to 641,000 for the same week last year. Year to date, the total headcount is 13.19 million head which is down 3.2% from last year. Live weights for last week were down 1 lb. from the prior week and up 13 lbs. from the same time last year. The ripple effect of last year’s herd liquidations is being felt as the supply side remains tight. Feedlot inventories are reported to be down 4.4% compared to last year. Live cattle pricing and futures spiked in April, held mostly steady in May, and are now starting to move higher again. As a result of the high beef market, forward purchasing has slowed which typically means fewer beef features and promotions. High prices are causing weaker consumer demand, but that is being offset by tight supply. Most primal categories are holding even or inching higher.

 

Grinds – The market is steady. Seasonal demand over Memorial Day was reported as moderate to good. Availability varies among the packers. The markets on 73% and 81% grinds are holding firm.

 

Loins – The market is steady. Demand is moderate and could improve with seasonal activity. Availability remains mixed between the packers. Market levels on premium primals are holding firm as supply is tighter this year.

 

Rounds – The market is steady. Demand is moderate to good and keeping the supply side clearing well. Availability varies among packers. Market levels are holding even.

 

Chucks – The market is steady to firmer. Choice and select products continue to trade in a close range with overall demand starting to rise a bit. Supply is available and varies among packers. Markets levels are being pressured higher.

 

Ribs – The market is steady to firmer. Demand is moderate to good, which is expected this time of year. Even with higher retails, demand is steady enough to move weekly inventory. Availability is mixed between the packers. The market has shown some strength over the last week.

PORK

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The market is steady to firmer. Total pork production for last week was down 1.4% versus the prior week and down 0.8% compared to the same week last year. Total headcount for last week was 2,371,000 as compared to 2,346,000 for the same week last year. Live weights for last week were down 1 lb. compared to the prior week and even at 0 lbs. versus last year. With the recent news about Prop 12 being upheld, it stills remains unknown as to when these new standards will be enacted in California and Massachusetts. Therefore, the impact on pricing and supply remains to be seen. Overall demand for fresh cuts has been moderate to good. Supply has tightened a bit due to a short slaughter week. Domestic demand for loins, butts and ribs is fair. Export volume is reported to be good. Supply estimates continue to beat expectations and headcount is up 1.4% for the year. Markets continue to maintain a steady undertone on most fresh primals.

 

Bellies – The market is unsettled. Higher retail pricing and foodservice menu costs have really caused unpredictable demand patterns. The market continues to ebb and flow on a weekly basis but is holding mostly steady.

 

Hams – The market is weaker. Demand has been declining since the Easter Holiday as retail deli and sub shop business is moderate to soft. Supply varies among packers. Market levels have been trending lower the past few weeks.

 

Loins – The market is steady to firmer. Demand has been improving due to seasonal business and retail promotional features. Available inventories vary by supplier. Market levels have been trending upward over the last few weeks.

 

Butts – The market is steady to firmer. Demand is trending strong which is expected this time of year. Availability is tight. Trade levels are moving higher.

 

Ribs – The market is steady. Foodservice demand continues to be reported as moderate to fair. Some excess frozen inventory is being reported. Availability remains varied by supplier. The market is holding mostly even on spareribs, St. Louis ribs, and back ribs.

 

 

CHICKEN

The market is steady. Total headcount for week ending 5/27/2023 was 171,437,000 as compared to 168,489,000 for the same week last year. The average weight for last week was 6.25 lbs. as compared to 6.34 lbs. for the same week last year. Industry demand is moderate to fair following the Memorial Day Holiday. On the supply side, packers are getting back to full production schedules. Domestic business on WOGS, tenderloins, and boneless breast is fair. Export demand on leg quarters is reported to be good. Supply is available but reduced slaughter and hatchability continue to be a topic of concern.

 

WOGS – The market is steady. Demand during the month of April trended higher and flattened out over May. The supply side for small birds and WOGS is limited to a finite amount each week. Market levels are flat.

 

Tenders – The market is steady. Foodservice and QSR demand were on the rise until mid-May but is now trending sideways. Supply is tight. The market on jumbo and select sizes is holding even.

 

Boneless Breast – The market is steady. Retail demand is good, foodservice demand is moderate, and industrial demand is starting to show some soft undertones. Supply is in balance with demand for most sizes. The market is stable for all sizes.

 

Leg Quarters and Thighs – The market is steady. Export volume is reported as good and retail business for 4/10 leg quarters is strong. Supply varies by plant. The market is moving sideways on leg quarters and thigh meat.

 

Wings – The market is steady. While foodservice demand had an uptick in volume during May, the category is still lagging behind expectations. Supply is available with some excess. The market is holding even on all sizes.

 

 

TURKEY

The market is steady to weaker. Total headcount for the week ending 5/27/2023 was 3,895,000 as compared to 3,484,000 for the same week last year. The average weight for last week was 30.87 lbs. as compared to 31.12 lbs. for the same week last year. The category remains in a transactional state where declining demand and trade levels are being looked at each week. Whole birds remain mostly sold-out but more spot demand continues to surface. Demand for breast meat, parts, and dark meat has slowed as purchasers take a cautious approach due to soft undertones. Export sales are fair at best with sellers being challenged by HPAI restrictions. Slaughter numbers continue to be lower than past annual standards. Market levels in most categories are trying to hold steady, but overall values are continuing to drop.

 

Whole Birds – The market is steady to weaker. Overall demand is a result of pre-booked loads. Suppliers are entertaining lower trade levels on some spot loads. Offerings are limited, but negotiated values are starting to develop. Supply is tight depending on size. The market is being pressured lower.

 

Breast Meat – The market is weaker. Retail deli and foodservice demand is soft as the consumer dollar is being stretched. With fresh and frozen supply combined, some excess is being reported. Market levels are trending lower.

 

Wings – The market is steady. Export demand on whole wings is fair. Domestic volume on two-joints is good as smokehouse business improves. Supply is available on a plant-by-plant basis. The market is holding even.

 

Drums and Thigh Meat – The market is steady. Export demand for Tom drums is moderate. Domestic volume for boneless thigh meat is fair as grinding business has slowed a bit. Supply varies by plant. Market levels are static.

 

SEAFOOD       

Gulf Shrimp – The market is unsettled. Both higher and lower prices have been seen over the past weeks due in part to available inventories and current economic conditions. Inventory for larger sized shrimp remains in tight supply. New seasonal production is expected to arrive on the market as we move through the coming weeks, and this is helping to put downward pressure on mid and smaller prices.

 

Black Tiger Shrimp – The market is weaker. The lower priced white shrimp market is helping to keep pressure on the Black Tiger market.

 

White Shrimp – The market is steady to weaker. Despite importers suggesting US inventories have decreased, the market remains steady to weaker due to lack of demand.

 

King Crab – The market is steady to weaker. Demand has been lighter and has helped to push the market lower. Year-to-date imports are down dramatically versus the same time period in 2022.

 

Snow Crab – The market is unsettled. Buyers and sellers are shifting their focus towards the 2023 fishing season as that production is starting to hit the marketplace.

 

Warm Water Lobster Tails – The market is steady to weaker. Sellers are looking to mitigate current inventories in preparation of Brazil’s season coming to a start.

 

North American Lobster Tails – The market is unsettled. Production has improved after a slow start caused by weather-related issues. However, demand still appears to be low.

 

Salmon – Market is unsettled. Demand for Wild Salmon appears to still be low, and supplies are starting to increase. The market for frozen fillets out of Chile is slightly weaker to unsettled. Supplies are readily available, and demand is low.

 

Cod – The market is unsettled. The market has continued to see downward pressure over the past few weeks as demand has been below expectations. Supplies are reported as adequate to fully adequate for a quieter demand.

 

Flounder – The market is steady. The market is mostly unchanged.

 

Haddock – The market is slightly weaker. The market is mostly unchanged but seeing lower pricing on all sizes. Supplies are reported as fully adequate for a quieter demand.

 

Pollock – The market is mostly steady.

 

Domestic Catfish – The market is firm. Inventories of all sizes are limited, and this trend is expected to continue as we move through the spring.

 

Tilapia – The market is steady. Year to date total, Tilapia imports are trending down 7% compared to this time last year.

 

Swai – The market is weaker. Year to date total Swai imports are trending down over 47% compared to this time last year.

 

Scallops – The market is slightly weaker. Inventories are good for a fair to moderate demand a month into the new domestic season. Import supplier activity has slightly improved.

 

 

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Cheese

The market is mixed. The CME Block market has moved firmer as we moved through the week. The CME Barrel market moved slightly firmer as the week progressed but has remained relatively flat from the week prior. Milk remains widely available for cheesemakers throughout all regions though inventories are mixed. Demand for cheese is variable as seasonal holidays have encouraged grilling season though we are approaching schools taking their summer breaks. There are continued challenges in the market due to scheduled downtime, transportation issues, and the recent fire at a dairy operation in Texas. International and European demand has increased in recent weeks as the European holiday season has begun, putting upward pressure on that market.

 

 

 

 

The market is firmer. The butter market has moved slightly firmer as this week progressed. Retail demand is reported as steady while foodservice is reporting moderate demand. Operators are reporting overall strong production schedules are in progress though continued labor shortages, transportation issues, and scheduled down time have impacted some regions. Butter manufacturers have plenty of cream readily available throughout all regions. Ice cream manufacturers are seeing steady demand as their production remains steady for the summer season.

The market is firming, even after yearly record lows earlier in the week. The new month started off with less than previously predicted crop reports, driving up prices.

The market is firming. Rising renewable demand and scheduled maintenance processor downtime has firmed up physical soy and canola markets.

FLOUR

The market remains firm. Crop conditions released by the USDA showed a 3% improvement of the winter wheat crop going from 31% to 34% in the good/excellent category. Spring wheat planted jumped from 65% to 85% over the previous week. This is above last year’s number of 70%, and nearly outpacing the five-year average of 86%.