November 21, 2022 Market Report
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Weather issues (heat and rainfall_ continue to linger across several growing regions, leading to tightened supplies and quality issues, resulting in overall higher markets. Vegetable production out of the Salinas Valley continues to see a decrease in supply due to the virus. Additionally, the commodities still continue to see increased heat-related issues such as lighter weights, fringe burn, tip burn, internal burn, discoloration and lower shelf life.
Soybean oil futures rose sharply as a result of the South American soybean crop’s bad start, Brazil’s announcement that it will utilize more soybean oil for biofuel, as well as ongoing logistics concerns. As farmers are reluctant to sell Canola seed to the market, Palm followed suit, and Canola saw rises.
Milk is shifting back to cheese production causing cheese markets to drop. Butter markets had dropped but are now starting to go back up. Shell eggs continue to climb but California markets are falling.
A stable market should be considered as a positive for packers as retail ramps up for the Thanksgiving holiday. Premium grade boxes and light weight range products are driving the ribs market, which is still strong. Strips are mixed; however, premium grade boxes continue to rise while Choice and Select appear to be stagnating. Grinds are steady, and chucks and rounds appear to be leveling.
Butts continue to trend lower and will do so marginally next week. Because suppliers are clearing off stockpiles, rib prices are still falling quickly. Due to November being a slow month for pork, loins are also heading downward. As supplies are pushed out, belly sizes are decreasing.
The season for wings has arrived, but there are still many options at reasonable costs. Product is easily accessible, and there are more tenders available. All sizes of breasts are widely available, but as the holidays draw near, supply will become more scarce as demand falls. Thigh meat without a bone is widely accessible.
The season for Gulf oysters began last week, but there are several bay closures planned to save and rebuild oyster reefs. Texas Parks and Wildlife is unsure of how long the few harvesting zones will remain open. Mahi-mahi sales are declining as consumers get ready for the upcoming 2022–2023 season. Some importers are selling their inventory at a loss. In Texas and Louisiana, landings of head-on shrimp for peeling have significantly decreased. The landing of Headless Whites 10/15, 16/20, and 21/25 has slowed down.