Alerts & What’s Trending
Produce
Tropical storm Francine, unfavorable weather patterns in the U.S., Mexico, and Guatemala, and insect pressure in California are affecting multiple commodities. These issues have led to continued higher market prices and lower overall yields. The weather in the Salinas Valley is gradually becoming cooler. Recent warm rains have created conditions conducive to mildew, prompting growers to implement all possible mitigation strategies.
Grain
Soybean oil futures moved lower approximately 2% last week as stocks are improving. Helping push soybean oil down is the heavy crushing currently taking place for meal. However, very dry weather in Ohio and drought in South America has traders concerned, which is supporting soybean oil. Canola is expected to move lower.
Dairy
Shell egg markets are down this week. California and Northwest markets are down. The Block & Barrel are increasing. CME spot cheese prices rallied up to new 12-month highs this week. Butter is flat.
Beef
Packers are in a volume driven market. Ribs and tenders continue to trade steady while upper 2/3 graded product continues to support most of the demand. In the loin complex, Ch & Sel grade continue to struggle, while upper 2/3 seems to have found a floor for now. The chuck and round complexes are finding resistance. Grinds continue to trade lower as demand continues to lessen even more.
Pork
Butts both Bone-in and boneless materials are supported. Loins are steady in the bone-in sector, while boneless are mixed due to some export demand. Ribs are mixed across types. Bellies remain unsettled as supply and demand is mixed. Trim markets are sideways and down a decent amount on the week.
Poultry
Wings demand has begun to pick up as we enter football season butt here is availability. Tenders and breasts are seeing increased supply. Birds are getting bigger with cooler weather and more chickens are being hatched. Dark meat demand remains very good. Whole birds are mostly even.
Seafood
The frozen tilapia market is highly unsettled with the news of a strong typhoon hitting several areas in both China and Vietnam. Prices of imported shrimp are also increasing due to import cost increases. Octopus market continues to firm up due to increased demand in Europe and the U.S. and decreased raw material availability.
