This report represents information for the week ending September 17, 2021.

Market is unsettled. Total beef production for last week was down 7.5% versus prior week and was down 3.0% compared to same time last year.  Total headcount for last week was 577,000 as compared to 581,000 for the same week last year.  Live weights for last week were up 1 lb from prior week but down 22 lbs. from same time last year.  Several cuts of beef including Ribeyes and Briskets are seeing record pricing for this time of the year and trending well above same time last year. Multiple plants had production issues as we moved thru August and this put additional pressure on availability over the past several weeks.  A fire was reported at a major beef packing facility this week which is expected to have an impact on production at the facility this week.  The choice grading percentage is dropping and is expected to continue to decline over the coming weeks.  The lighter availability of Choice and higher graded product is expected to put pressure on availability and put upward pressure on pricing for those buyers seeking the higher graded product.  Forecasts are showing that beef production for Q4 will be below Q4 of last year and this combined with the falling grading percentages is expected to put pressure on availability of product.  The market has seen downward pressure on multiple cuts as we moved into this week which is seasonally typical as we move past Labor Day.  This is typically a short period before the market starts its upward march into the fall season.  This is causing the market to be more unsettled due to the already high prices.

Grinds- Market is mixed. Demand for grinds has been good as we moved past the holiday week.  Availability and pricing varies by packer.

Loins- Market is steady to weaker.  Demand has eased now that we have moved past the holiday and availability has become more mixed between packers.  This market typically sees downward pressure as we move thru the coming weeks as demand seasonally shifts to other cuts.

Rounds- Market is weaker.  This market has been trending at very high levels for several months and well above last year and the 5 year average.  The market has been moving lower as we moved into this week as demand has been seasonally lighter.

Chucks- Market is steady to weaker.  Buying activity has been lighter as we moved into this week helping to put downward pressure on multiple cuts.  Availability is mixed between packers with some packers raising their asking prices by mid-week.  This market typically sees upward pressure over the coming weeks as cooler weather sets in across the country.

Ribs- Market is unsettled.  Prices are still at very high levels and availability of choice product is more limited due to the grading percentages.  Typically this market is unsettled for the next few weeks before seeing upward pressure again as we move into the fall.  This week has seen upward pressure on prices from some packers already.  Some packers have already announced that they will be limited on product thru the holiday season this year.  This could result in additional pressure to already extreme prices.

Market is steady to weaker. Total pork production for last week was down 5% versus prior week and was down 4.1% compared to same time last year.  Total headcount for last week was 2,274,000 as compared to 2,338,000 for the same week last year.  Live weights for last week were even with prior week and down 4 lbs. from same time last year.  Labor issues continue to be a concern at multiple plants along with transportation challenges.  Shortages and allocations are common place and are expected to continue as we move thru the fall.  Pork exports have been lighter than expected for the second half of the summer helping to make additional product available for domestic consumption. Demand has been seasonally lighter as we moved into this week which is common after the Labor Day holiday. The USDA has revised production estimates for the second half of this year and is expecting production for 3rd quarter to be 6% lower than last year and 4th qtr to be 3% lower.  October is National Pork month and advertising is typically very good during the month.

Bellies- Market is steady.  The market has dropped significantly from just over a month ago and has been holding steady as we moved thru this week.  Fresh belly inventories have been limited for several weeks and have been helping to keep the market from dropping to lower levels.

Hams- Market is unsettled.  The recent high prices have helped to slow buying interest and export interest has dropped sharply the past few weeks.  Multiple packers are working on bookings for the fall to try to better understand the needed production over the coming weeks.

Loins- Market is steady.  Available inventories vary between suppliers with boneless items still being a challenge for some packers.

Butts- Market is weaker.  Demand was very good leading up to the holiday but has been seasonally lower now that we have moved past the holiday.  Demand is typically seasonally lower over the coming weeks but the limited labor is expected to have an impact on the market as we move thru the coming weeks.

Ribs- Market is weaker.  Buying activity has eased now that we are past the holiday and helping to take some pressure off of the market.  Labor issues remain a concern and helping to keep the market more unsettled as we move thru the coming weeks.

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Market is steady.  Total headcount for last week was 148,942,000 as compared to 149,110,000 for the same week last year.  Average weights for last week were 6.40 lbs. as compared to 6.48 lbs. for the same week last year.  Chick placements on fryers for week ending 10/16/21 are estimated at 161.7 million headcount.  Placements for previous week were 161.8 million and same week last year was 167.2 million.  Retail and foodservice business is being reported as moderate this week.  Demand for WOGS and 8pc cutups is reported as good across all sizes.  Demand for tenders, boneless breast, and wings continues to be very active.  Export activity for leg quarters and whole legs is supporting back half parts.  Labor issues and worker absenteeism continue to have plants running reduced schedules.  With reduced headcounts on a weekly basis, supply cannot meet the current demand needs across the country.  Floor stocks are moderate to reduced depending on the plant.  Market levels are firm on tenders, boneless breasts, and wings.

WOGS- Market is steady.  Weekly activity from the fast food and retail deli channels remains very strong.  All sizes are clearing well with limited spot load activity being reported.  Supply is tight, market remains stable.

Tenders- Market is steady to firm.  Retail, QSR, and foodservice demand has all sizes in a sold out position.  Limited headcount and debone capacity continue to constrain the supply side.  Inventories are tight and future production is limited to the number of tenders that can be portioned on a weekly basis.  Market levels remain firm.

Boneless Breast- Market is steady.  Retail and foodservice demand is stable as consumers gravitate to boneless breast since it is a very cost efficient protein.  QSR business continues to be strong as the drive through window remains popular.  Supply on all sizes is tight.  Market on all sizes is well supported.

Leg Quarters and Thighs- Market is steady.  Leg quarters and whole legs continue to be well supported by the export channel.  Retail sales on drums, thighs, and bagged leg quarters is moderate to good.  Boneless skinless thigh meat remains a high demand item.  Supply for bone-in parts is available while boneless skinless thigh meat is short due to limited debone capacity.  Market levels are mostly flat.

Wings- Market is steady.  Foodservice demand is very active due to carry out demand and football season.  Further processors continue to struggle in procuring enough small wings to replenish inventories on fully cooked items.  Supply is tight and market is well supported.

Market is steady to firm.  Total headcount for last week was 3,419,000 as compared to 3,724,000 for the same week last year.  Average weights for last week were 32.32 lbs. as compared to 32.40 lbs. for the same week last year.  Whole birds continue to be a sold out category as we move into the holiday shipping period.  Demand for the categories of breast meat, white trim, and tenders is reported as moderate to good.  Domestic demand for drums, thighs, and wings remains strong enough to support the market.  Export volume remains consistent on back half parts.  The production side of the business continues to struggle with labor issues.  Weekly production and slaughter rates are down year over year which is keeping floor stocks extremely tight on all major categories.  Allocations continue to be reported.  Supply for whole birds is extremely limited, parts remain tight, and white meats are tight.

Whole Birds- Market is steady to firm.  Fresh orders for the November timeframe continue to be reported as strong.  Suppliers are still trying to pack frozen orders to fulfill shipments for the holidays.  Spot loads are rare and are being held with confidence.  Hen sizes are extremely tight while some heavy Tom sizes are available.  Supply is tight and the market remains firm.

Breast Meat- Market is steady to firm.  Weekly foodservice and retail deli business is reported as moderate to good.  Further processor demand is strong and keeping supply sold up.  Supply is tight on white meats.  Frozen inventory is extremely low.  Market is firm on breast meat, white meat, and tenders.

Wings- Market is steady.  Export demand for whole wings and domestic needs for 2 joints is moderate.  Limited production is keeping the category tight.  Market is flat.

Drums and Thigh Meat- Market is steady.  Domestic and export demand for drums and thighs is reported as fair.  Thigh meat continues to be in high demand and well supported by retail ground turkey sales.  Supply is available on bone in parts, but tight on boneless thigh meat.  Market is flat.

Gulf Shrimp- Market is weaker.    The market has been moving lower over the past few weeks as additional new season product makes its way into the market.  The USDA recently announced that they will be buying 4.6 million lbs of shrimp from the region.  This could put pressure on availability over the coming weeks and put pressure back on the market.  The National Marine Fisheries Service reported that July 2021 landings for July were down 46% compared to same time last year and were the lowest July on record outside of the 2010 oil spill.  The year to date number thru July for 2021 is 22.2% lower than same time 2021.

Black Tiger Shrimp- Market is firm. Inventories are limited for a strong demand. Allocations to orders should be expected.  Production costs and logistical concerns are putting pressure on the market. Delays on imports are putting additional pressure on this market.  Replacement inventories have been difficult to come by for several months.

White Shrimp- Market firm.  The market for product of Latin America had seen downward pressure a few short weeks ago but demand from buyers looking to cover their needs has put upward pressure on that market again.  The market for product of Asia remains firm and inventories are limited for an active demand. The lack of container availability combined with overall logistical challenges is putting a large amount of pressure on the market. Allocations to orders should be expected. Shrimp imports are trending higher but the strong demand for both retail and foodservice are keeping inventories limited.   Covid concerns in Asia are putting additional pressure on that market as production in that region is seeing additional impact from the spread of the virus.

King Crab- Market is firm. Inventories are limited for an active demand. Global demand is strong and putting pressure on the market.  This market has been firm for several months due to the limited availability and strong demand.

Snow Crab- Market is firm. Inventories are limited for an active demand. New season product out of Canada is making its way into the market but the surge in demand is keeping inventories very limited. Foodservice demand has been strong across the country. Demand is expected to be very good over the coming weeks.

Warm Water Lobster Tails- Market is firm. The market has continued to push higher over the past several weeks as the active demand is keeping pressure on limited inventories.  Allocations to orders are common due to the limited inventories.  New season product is making its way into the market but the brisk demand has helped to prevent inventories from building.

North American Lobster Tails- Market is firm. Demand has been strong for several weeks and is putting pressure on very limited inventories. Seasonal plant closures combined with poor fishing conditions have caused more limited availability. Shorts and allocations to orders should be expected.  The market is at record high levels.

Salmon- Market is mixed. The market for product for farmed product has seen the market move lower as we moved thru the last few weeks as a lighter demand has helped to take pressure off of the market.  This trend has reversed as we moved into this week will demand improving in multiple growing regions.  The market for wild salmon is mixed between species with limited availability.

Cod- Market is firm. Product out of the Pacific is seeing inventories concerns with a strong demand that has been keeping pressure on inventories for several months. Foodservice demand is very good. There are also delays with production coming back out of China putting additional pressure on the market.

Flounder- Market is steady to firmer. Production issues and delays out of China are causing issues for the market.

Haddock- Market is steady to firmer. Inventories are light for an active demand. Increased tariffs combined with higher production costs and more limited inventories are putting pressure on the market.  Shipping delays are adding additional challenges to the market.

Pollock- Market is firmer. Larger sized product is in limited supply due to recent catches being more on smaller sized fish. Production delays in China are putting additional pressure on the market with reports of port delays backing up shipping lanes.

Domestic Catfish- Market is firm. Inventories have been limited for several months and the easing of dining restrictions across the country has put additional pressure on the market. Allocations remain commonplace and are anticipated as we move thru the summer. Inventories are limited on all sizes and well below current demand.  Supply issues with imported product is putting additional pressure on the market as that market is seeing record high prices.

Tilapia- Market is firmer. Higher production and logistical costs are putting pressure on the market. Shipment delays on product coming out of China are expected over the coming weeks. Buying activity has been very good and keeping pressure on already light inventories.  Total tilapia imports ytd thru June are down 12.2% compared to same time last year.

Swai- Market is firmer. Foodservice demand continues to improve across the country, and this is putting upward pressure on the market. Logistical concerns remain an issue with higher freight costs and longer lead times on both ocean freight and trucking. Inventories have become more limited with larger sizes seeing the most pressure. Farmers have been trying to turn their ponds faster to keep up with demand and this is resulting in smaller sized fish.  Covid issues in Vietnam have closed multiple plants and helping to push the market higher as availability is expected to become tighter over the coming weeks.

Scallops- Market is firm. The market for larger sized domestic product is firm with increased demand keeping pressure on the market. Inventories of U/10 product are very limited with record high pricing. New season product is making its way into the market but reports are showing expectations of inventories issues as we move thru the summer. The brisk demand is keeping inventories from building and keeping continued pressure on the domestic market.  The market for imports is steady to firmer with product from Canada seeing upward pressure due to limited availability and product from China continues to see shipping delays.

Market is firmer.  The CME Block & Barrel prices are trending upwards, the trigger for this being seasonal demand vs low production. Plant staffing continues to be of concern. The COVID-19 Delta variant continues to surge, which continues to cause forecasts for the cheese market for rest of the year to be varied. Logistical challenges (driver shortages & freight issues both domestic & international) continue to be prevalent.

Market remains firm. Cream availability remains tight. Butter churning schedules are varied as plant staff shortages and logistical issues continue to affect production runs. Plants are doing what they can to get ahead of the holiday push, by building their inventories. The DELTA Variant continues to be of great concern across the country.

Market is steady to weaker.  Retail demand is a bit mixed this week.  Demand across most regions of the United States is moderate.  West Coast and Northeast volume is rated as moderate to light.  Foodservice business is reported as steady and consistent.  Fast food QSR demand remains a constant source of weekly volume.  Supply is available on both medium and large sizes.  Market is trending lower on medium sizes and lower on large sizes.  National weekly shell egg inventory reports shell egg inventory up 5.2% over last week.

Market firmer. Futures have increased due to a smaller-than-anticipated outlook for the canola crop. COVID – 19 Delta variant continues to have an effect on both production and demand and is a concern with the economic impact globally.

Durum market is firmer. Pricing has risen by over 200% due to the durum harvest having been severely impacted by drought conditions. The harvest was also then affected by heavy rains at the end of the crop season.

will be in short supply for the next 2 to 3 months and manufacturers are being allocated on this ingredient. Salad dressings, mayonnaise, and white goods will be affected. Suppliers are trying to source modified food starch from other sources and are trying to reformulate products when functional replacements are available.

Several factors are going to come into play for the outlook on costs for domestic canned goods for the 2021 pack season. Produce costs are up over last year driven by the price of soybeans and field corn. The cost of steel is in tight supply and will have a direct impact on the cost on #10 cans. Labor is in high demand and driving costs up as well as freight is higher than last year.

Market is firm. Brazil was hit by two frost events causing extensive damage to coffee bean crops. Some of the extensive damage may cause farmers to replant trees which could take years to produce. It is important to note that the situation of the ground in Brazil continues to evolve. The lockdown in Vietnam because of Delta variant surge in cases has added concerns for coffee supplies.

Canola crop continues to tighten and raise supply concerns.