December 12, 2022 Market Report
Alerts & What’s Trending
Markets have seen continued volatility as growers deal with cooler weather, rainfall, multiple hurricanes, and growing region transitions which have considerably impacted overall yields through most growing regions. We will likely see markets remain higher for the remainder of the year.
The long-awaited biofuel mandates from the EPA were finally announced, which prompted investors to liquidate their long positions and drove the price of soybean oil lower. Due to the terrible weather in Malaysia, palm was somewhat higher, and canola was also up due to the EPA authorizing its use for biodiesel.
Shell egg markets are still strong since demand is strong and supplies are limited. Despite a decline in cheese markets, demand is still high. Markets for butter are beginning to ease. As butter markets have fallen over the past 30 days, cream and culture prices have decreased for December.
In 2024, there will be a 3% decrease in beef production, and between 2% and 5% in 2025 and 2026. That might translate to a reduction in annual beef production of up to 500,000 metric tons. Overall, there is plenty of supply, and purchasers don’t seem pressed to make purchases beyond those necessary for the upcoming holiday season. Due to festive demand, ribs and tenderloins are still in high demand. As the demand for a medium meat product with a lower price point increased, strips did firm up above levels from weeks earlier. As long as supply outpaces demand, the chuck and round will continue to trade lower.
Because of features in retail advertisements, butts rose as predicted. Due to the slowing demand, loin prices are still declining. Ribs remain flat for the upcoming week, but once suppliers start taking reservations, the market may rise. As suppliers purge frozen stocks, belly sales are also on the decline.
The season for wings has arrived, but there are still many options at reasonable costs. Product is easily accessible, and tender availability is rising. Seasonally low breast prices will persist through the end of the year, but estimates for slower production will result in a supply shortage. It’s simple to find thigh meat without the bones.
Cod filet prices are poised for a downturn heading into the new year but have been unusually strong since August. Frozen crab continues a nine-month falling streak.