This report represents information for the week ending December 1, 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 mixed. Total beef production for the holiday week last week was down 10.3% compared to prior week but was up 2.2% compared to same time last year. Total headcount for last week was 572,000 as compared to 549,000 for the same week last year. Live weights for last week were up 2 lbs compared to prior week but down 15 lbs compared to same time last year. Live prices held mostly steady last week, and that trend is expected to continue as we move into next week. Demand during Thanksgiving week was overall light. Demand for holiday items is expected to be strong for the next couple of weeks before seasoning the seasonal slump as we near year end.

Grinds- Market is unsettled. This market is expected to become more unsettled over the coming weeks as inventories are expected to become tighter—due in part to the reduced production weeks at the end of year and also heavy retail advertising taking place.

Loins- Market is mixed. Inventories are varied between packers causing some larger gaps in pricing. Demand for the next few weeks is expected to be improved over prior weeks.

Rounds- Market is steady to weaker. Inventories are good for current demand.

Chucks- Market is steady to weaker. Inventories are good for current demand.

Ribs- Market is firm. Demand has been very good and this trend is expected to continue for the next few weeks.

Market is steady to firmer. Total product production for the holiday week last week was down 11.9% compared to prior week but was up 1% compared to same time last year. Total headcount for last week was 2,163,000 as compared to 2,152,000 for the same week last year. Live weights for last week were even with prior week but up 2 lbs from the same week last year. Demand is expected to be very good over the coming weeks, and pork production is expected to remain strong. Export demand has been improved and helping to move additional inventories.

Bellies- Market is firmer. Demand is very good.

Hams- Market is firmer. Demand for Christmas is very good.

Loins- Market is steady. Demand is expected to improve as we move closer to the holidays.

Butts- Market is steady to firmer. Demand is expected to continue to improve as we move closer to year end.

Ribs- Market is steady.

 

Overall markets this week are rated about steady to steady, with trade described as fair. With first of the month ads and holiday shopping picking up, the industry expects to see a seasonal pick up in sales. Boneless breasts have started to see some additional interest with moving into December. Both jumbo and medium sized breast meat is steady. WOGs and whole birds are mixed, with some trade both above and below current levels. Tenders and cut wings are starting to see a pickup in interest and trade at full market levels. Boneless dark meat has strengthened as food-service demand picks up. Whole legs, bone in thighs, thigh meat and leg meat are all rated steady to full steady. Estimated slaughter ending week of 12/2/17 is 170.4 million head.

 

Markets on whole birds have decreased after the Thanksgiving holiday, with buyers still negotiating for the Christmas holidays. We could possibly see some even lower levels for product shipping through the end of the year. Demand on breast meat and tenderloins have increased with some suppliers tight on availability. Drums and whole wings are moving at discounted levels into export channels with domestic trade currently steady at best. Thigh meat is rated full steady to firm.

 

Gulf Shrimp- Market is firm. Inventories are light for current demand and raw material costs continue to rise.

Black Tiger Shrimp- Market is steady.

White Shrimp- Market is unsettled. Demand has been light heading up to Thanksgiving, and this week has continued that trend. The market is currently mostly steady, but holding an unsettled tone with expectations of improved demand over the coming weeks.

King Crab- Market is steady. Year to date imports are down almost 12% compared to ytd 2016.

Snow Crab- Market is unsettled. The current market remains well above last year levels with lighter overall inventories compared to last year. Year to date imports are down almost 8% compared to same time 2016.

Warm Water Lobster Tails- Market is steady to firmer. Inventories are light for current demand. 

North American Lobster Tails- Market is steady to firmer. Inventories are light and putting upward pressure on the market.

Salmon- Market is steady to weaker. Inventories are good for a dull demand. Year to date total salmon imports are up 2.5% compared to ytd 2016.

Cod- Market is firm. Reduced quotas and smaller than expected catches are helping to keep upward pressure on the market. Catches have been trending more on the larger sized fish and this is putting additional pressure on availability of smaller sized fillets.

Flounder- Market is firm. Inventories are light for a strong demand. Larger sized fillets are in light supply and putting additional pressure on prices on those sizes.

Haddock- Market is firm. Reduced quotas and higher raw material costs are putting upward pressure on the market.

Pollock- Market is steady to firmer. Buying demand for Lent is very good, and this combined with less available product from Russia, is helping to keep pressure on the market.

Domestic Catfish- Market is steady to weaker. The market has moved lower the past few weeks as inventories have been very good for current demand. Larger sizes have heavier inventories at this time.

Tilapia- Market is steady.

Swai- Market is unsettled. Import numbers are moving lower and this combined with additional costs associated with importing product is putting additional pressure on this market. Prices have been moving higher the past several months. Year to date total Swai imports are down 12.5% compared to ytd 2016.

Scallops- Market is steady.

 

Market is softer. The CME Block and Barrel markets have moved lower this week. Demand for cheese is steady across all regions and inventories are balanced. Export interest in the West is increasing. Milk production across the country is generally steady. In the Midwest milk production has been positively impacted by moderate temperatures.

 

 

Market is unsettled. The CME Butter market has moved both higher and lower this week. Cream is readily available and producers are actively churning. Inventories remain sufficient despite holiday demands. With E.U. butter prices dropping, the U.S. is experiencing competition for exports. Consumption of butter in 2017 has reached the highest levels since 1968.

 

Market is steady. The recent market surge has now pushed prices to levels not seen since 2015. Demand in the retail segment is generally good despite holiday replenishment. Promotions are limited. Foodservice and institutional business is steady. Export demand is good. Shell egg inventory this week is up 3%.

 

 

Market has been soft for most of November, but has started to firm again. Bio-diesel continues to be in the press and along with continuing logistics price increases due to new regulations, both keeping pressure on this market.

 

Market softer than last week as spring wheat basis premiums have fallen. High protein wheat is at an all-time high as strong demand as protein quality and quantity is in short supply. As stated several reports ago, high protein wheat product is a small percentage of total wheat sold. Area planted for this year’s new crop is the smallest on record since 1919 and could lead to tighter and more expensive wheat products in coming years.

 

 

No report this week...