March 6, 2023 Market Report
Alerts & What’s Trending
As a result of continued negative effects on yields and quality throughout many of the growing regions, markets have been trending upward and are anticipated to continue doing so for the foreseeable future. The weather has continued to impact quality and postpone harvests from the desert producing zone during the last two weeks. Epidermal peel and fringe burn are a few quality problems. To address the problems, harvesters will continue to work the produce in the field. For at least the upcoming several weeks, markets are anticipated to hold their current modest gains.
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.
As demand rises, the price of shell eggs keeps rising. Market share for California shell eggs is declining. Markets for cheese are still stable or slightly rising. This week, butter markets fell, and there are still pessimistic undertones. Due to non-market cost reasons in March, Cream and Culture pricing modifications were made.
Packers are forced to hold prices unchanged or boost them as cattle costs continue to rise. Nonetheless, some inventories are beginning to appear as rib sales remain steady. Available supply is a contributing cause to the upward trend in tenderloin prices. Although shortloins and strips continue to draw interest, packers and buyers have not come to an agreement on a price. There are steady grinds.
Butts increased in price in response to typical seasonal demand and export demand for boneless butts. Because there is enough supply to fulfill demand, loin prices have remained fairly stable. While there is still a large amount of inventory in cold storage, rib sales somewhat declined. Green ham prices are on the rise due to rising demand from international markets. Due to excessive cold storage levels, bellies shifted counter seasonally.
This week, the back of the bird is seeing the highest demand. Large breasts are still in high demand. Demand and supply are balanced by tenders. This week, whole chickens and cut ups were more expensive. The price of jumbo wings was low, but March is expected to see an increase. The medium wings remained stable. Above were little wings.
Last Wednesday marked the beginning of Lent, which will endure through the first week of April. (April 6 – February 22). Compared to previous year, supplies of shrimp, salmon, tilapia, pangasius, pasteurized crab meat, mahi, tuna, calamari, cod, and pollock have all steadied.