March 20, 2023 Market Report
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The total yields of numerous commodities have been impacted by ongoing weather problems and transitions, which will have an impact on markets over the next weeks. The production of various commodities has benefited from the desert growing region’s warmer daytime and nighttime temperatures. Although the quality of the desert’s growing is generally good, the recent weather has caused some quality problems, including blisters, epidermal peeling, growth cracks, pin rot, fringe burn, and mildew.
Soybean oil increased last week despite USDA data showing a 7% decline in supplies due to rising demand for biofuels. The majority of canola stock prices are rising, which can present a buying opportunity. Demand for palm is higher due to strong demand and flooding in Indonesia and Malaysia, which results in decreased production.
Retail and foodservice demand for shell eggs is strong, and markets are up. Block markets are down, and cheese barrel prices are up. Butter markets are down this week, and pessimistic tones are still there. Cream and culture prices have been adjusted for March owing to non-market cost factors.
Demand throughout the majority of the animal is still sluggish. Ribs keep going steadily. Inventory of tenderloins has increased and they are beginning to exhibit weaker tones. Short loins and strips are starting to have weaker tones. Chucks are seeing some resistance, but rounds are trading more favorably and lean cutting demand has increased. Grinds continue to be steady.
The demand for B/I and boneless butts is increasing, and the trend is up. While there is still a demand for these products in the retail market, boneless loins also climbed up. Also, the demand for larger-sized ribs has increased as the supply of small ribs becomes more scarce. There seems to be some relief on trimmings as we prepare for the following week. But, the strength in fresh bellies may only last for a short time.
This week once again, the back of the bird has the most demand. Large breasts are still in high demand. Tenders are in high demand as the quantity of breast meat decreases. This week, whole birds and cut ups were roughly equal. Jumbo and medium wings are in surplus since freezers from additional processors are already filled. Sturdy supply on small wings.
Lent will last until April 6th so be prepared for the increase in volume. All markets show double-digit increases during Lent. As we haven’t seen a genuine Lenten season in three years due to the pandemic, keep in mind that your systems might not be tracking the rise in demand. This year, Lent began sooner than it did last year.