May 15, 2023 Market Report
Alerts & What’s Trending
Growing region transitions and past weather events continue to cause lower overall yields and have kept markets higher; however, production is beginning to increase across many commodities, and we will likely see pricing begin to stabilize. Although growers are behind schedule on the mixed vegetables in the Salinas Valley growing region, supplies are beginning to increase, and many markets have declined. However, supplies are expected to remain volatile throughout the month of May.
The price of soybean oil increased last week. The futures climbed up 220 points on Friday, which saw the majority of the greater trading activity. The main focus was on some weather concerns and some stronger energy, but traders recognized a pricing opportunity and added some long covering. Although production was down, the market for palm oil declined.
Shell egg markets have not changed; they have stabilized. The butter and cheese markets are both still stable, but they both have negative undertones. For the month of May, there will be slight price reductions for Cream and Culture.
While rib and strip business is steady, there are some worries about potential inventory increases. Tenderloins and brisket prices are leveling off, and some packers are displaying sufficient supplies. As processors and the grinding of some round cuts assist to balance supply and demand, chucks and rounds remain constant. Grinds are consistent and want assistance on Memorial Day.
As anticipated, robust demand is projected to drive this market up through May, therefore butts increased once again this week. The market for ribs has remained stable despite rising demand and surplus cold storage inventory. Due to the release of Memorial Day retail ads, loin prices increased. As expected, fresh bellies decreased but should start to trend upward as supply shifts to processing. Trimmings fluctuated in price.
Mother’s Day caused the breast meat to increase. Tenders are also still increasing quickly. The price of whole birds and cut ups rises in response to rising seasonal demand. Wings are largely stable with strong demand. Demand for dark meat is still high.
Seafood demand was very high due to Mother’s Day. The 2023 North Atlantic lobster season officially began on May 1. The Canadian Spring Pack, which runs from May 1 to June 30th, is the first season.