Market Report – Week Ending May 7, 2021

Market is firm. Total beef production for last week was down 2.3 versus prior week and was up 50.9% compared to same time last year. Year to date total production is up 4.9% compared to year-to-date 2020. Total headcount for last week was 609,000 as compared to 439,000 for the same week last year. Year to date headcount is 10,954,000 compared to 10,583,000 for year-to-date 2020. Live weights for last week were even with prior week but up 10 lbs. from same time last year.  The market has seen large increases in prices on several cuts over the past few weeks due to the increased demand, lighter production, and more limited inventories. Prices on multiple cuts are at record highs for this time of year. Allocations and cuts should be expected. The ability to add onto orders is becoming difficult to non-existent due to the lack of available product. Production issues continue to be a concern with lack of available labor causing concern at multiple plants. Select Graded product is in very limited supply and pricing has moved much higher than seasonal averages for this time of the year. The surge in buying activity is keeping pressure on availability and is a concern with multiple packers. Warmer temperatures across the country are expected to help fuel additional retail demand which is already seeing a good seasonal increase. Memorial Day is a few weeks away and demand is expected to be very good as we move through May.

Grinds- Market is firm. Buying activity has been very good and keeping pressure on available inventories. The strong demand is putting pressure on other cuts for grinding material. 

Loins- Market is firm. The market has continued to push higher over the past few weeks. Demand is typically seasonally stronger as we lead up to Memorial Day.

Rounds- Market is firm. Good buying demand and lighter production numbers are keeping pressure on the market.

Chucks- Market is firm. Demand is very good and above normal seasonal trends for this time of the year. The strong demand for grinds could keep additional pressure on this market over the coming days.

Ribs- Market is firm. The market has pushed much higher over the past few days. Current prices are well above same time last year. Select grade product is difficult to come by and prices have surged higher. Demand is typically seasonally improved as we move through the spring.

Market is firm. Total pork production for last week was down 0.8% versus prior week but was up 58.7% compared to same time last year. Year to date production is up 1.3% compared to year-to-date 2020. Total headcount for last week was 2,454,000 as compared to 1,540,000 for the same week last year. Year to date headcount is 44,061,000 as compared to 44,058,000 for year-to-date 2020. Live weights for last week were even with prior week but down 2 lbs. from same time last year. Production concerns continue to be reported due in part to lack of available labor being reported in multiple plants. Further processing activities have been lighter at multiple plants putting pressure on availability of multiple items. Allocations and shortages should be expected as we move through the coming weeks. Easing of dining restrictions across the country are helping to improve foodservice demand at a time that production is moving lower. Pressure on the overall market is caused by cold storage inventories remaining very low, retail demand continuing to be strong for several weeks. Availability on all items has been very limited for several weeks with allocations and cuts common place with multiple packers. Memorial Day is a few weeks away and is the official kickoff of grilling season. Advertising is expected to be very good over the next few weeks. Export demand has been strong for several months and has been keeping pressure on availability. 

Bellies- Market is unsettled. The belly market has surged higher over the past several weeks and has been well above same time last year. That trend reversed as we moved thru the end of last week and into this week. However, as this week has progressed the market has once again started moving higher from the lower prices seen earlier in the week. Demand has been very good for bellies for the past few months and availability has been limited. The high prices have help to cause a decrease in overall buying interest, but demand is still good, and inventories are light.

Hams- Market is firm. Light inventories and a strong demand have been keeping pressure on the market. Buying demand for Easter was good and kept pressure on the market for the past several weeks. Export demand has been very good and helping to move additional inventories. Demand for deli items is improving and putting additional pressure on the market.

Loins- Market is firm. Inventories are varied between suppliers helping to keep pressure on overall availability. Buying demand continues to improve and putting pressure on inventories.

Butts- Market is firm. Seasonal demand is very good and keeping pressure on the market. Demand is typically seasonally strong as we move closer to Memorial Day weekend. The easing of dining restriction across the country is expected to help overall demand.

Ribs- Market is very firm. Retail demand has been strong with additional advertising expected as we move closer to Memorial Day and this has caused a large increase in buying activity. Foodservice buying activity has surged over the past several days as buyers look to cover their needs as additional restrictions are lifted across the country. Ribs in cold storage are down over 30% and are at their lightest numbers in almost a decade. Pricing is at record highs and well above the extremes seen last May. Lighter production numbers will help keep pressure on the market over the coming days. Labor continues to be a concern in the plants and is limiting production. Allocations and shorts to orders should be expected. Demand typically continues to improve seasonally better as we move through spring. 

Market is firmer. Total headcount for last week was 163,639,000 as compared to 162,022,000 for the same week last year. Average weights for last week were 6.38 lbs. as compared to 6.28 lbs. for the same week last year. Chick placements on fryers for week ending 6/5/21 are estimated at 164.3 million headcounts. Placements for previous week were 164.2 million and same week last year was 170.2 million. Retail and foodservice activity is reported as steady to good. Demand for boneless breast, tenders, wings, and dark meat is reported to be strong. Export volume on leg quarters and whole legs is reported as moderate to good. Labor shortages continue to challenge the industry as weekly production is limited and floor stocks are reduced. Supply remains tight across the industry. Spot load availability is hard to find, and offerings are few. Demand is outpacing supply and shortages are being reported across most categories.

WOGS- Market is steady to firmer. Demand from fast food and retail deli remain active. Production is limited and all sizes of WOGS are clearing adequately on a weekly basis. Supply is tight, and shortages are being reported.

Tenders- Market is firmer. Foodservice demand continues to trend upward as the economy reopens across the country. Limited production schedules are keeping supply constrained. Supply is short, and allocations are being reported.

Boneless Breast- Market is firmer. Both retail and foodservice demand is reported as good. Foodservice activity continues to be vibrant with the QSR channel and improving with casual dining. Lack of labor is limiting the number of front halves that can be deboned on a weekly basis. Supply remains tight, and shortages are being reported.

Leg Quarters and Thighs- Market is steady to firmer. Export demand for leg quarters and whole legs is steady. Drums and thighs continue to have increased movement in the retail channel. Labor issues have put a premium on leg debone and dark meat availability remains tight. Supply is limited.

Wings- Market is steady to firmer. All sizes of wings are reported to be oversold. Industry supply is limited by lack of labor and tight production schedules. The finite supply of wings cannot keep up with demand. Supply is tight on all sizes, and allocations are being reported.

Market is steady to firmer. Total headcount for last week was 3,502,000 as compared to 4,030,000 for the same week last year. Average weights for last week were 31.05 lbs. as compared to 31.48 lbs. for the same week last year. Frozen whole birds are reported to be in a sold-up position as future orders have available supply booked. Demand for breast meat, white trim, and tenders remains moderate to good as seasonal business is improving. Domestic and export business on drums, thighs, and wings is reported to be steady. Labor shortages continue to limit weekly production and available supply. Shortages across multiple categories are starting to occur. Supply for whole birds is very tight, parts remain limited, and white meats are tight.

Whole Birds- Market is firm. Bookings for whole birds have were reported to have been strong across all sizes. With limited production numbers, supply is tight and spot availability is hard to find. 

Breast Meat- Market is steady to firmer. Demand for breast meat and white trim is improving on a weekly basis due to seasonal demand and the reopening of the economy. Supply remains tight on fresh and frozen raw material. Some shortages are starting to occur.

Wings- Market is steady. Domestic and export activity for whole wings and 2-joints is moderate. As smokehouse restaurants hit their seasonal stride, demand tends to improve. Tom sizes remain more requested with all sizes are clearing well. 

Drums and Thigh Meat- Market is firmer. Domestic and export demand for drums and thighs is steady to good. Drums are getting an uptick in seasonal demand and ground turkey sales remain strong with the retail channel. Supply is limited on bone in parts. Lack of labor is constraining the amount of deboned dark meat. 

Gulf Shrimp- Market is firm. Inventories are limited for an active demand. Inventories have been light for several months and allocations have become common place. Larger sized product has seen of the most pressure as we moved through this week due to the light inventories and the increasing demand.

Black Tiger Shrimp- Market is firm. Inventories are limited for a strong demand. Allocations to orders should be expected. The surge in Foodservice demand is putting pressure on larger sized shrimp inventories and the market has seen price increases across all sizes over the past few weeks. Production costs and logistical concerns are putting additional pressure on the market. Delays on imports are putting additional pressure on this market.

White Shrimp- Market is firm. Inventories are limited for an active demand. The lack of container availability combined with overall logistical challenges is putting a large amount of pressure on the market. Allocations to orders should be expected. The recent increase in demand as additional dining restrictions are being eased is causing availability issues as replacement inventories are very difficult to come by.

King Crab- Market is firm. Inventories are limited for an active demand. Demand is very strong in Asia and putting additional pressure on the market. 

Snow Crab- Market is firm. Inventories are limited for an active demand. New season product out of Canada is making its way into the market but the surge in demand is keeping inventories very limited. Foodservice demand continues to improve as additional dining restrictions are lifted across the country. Demand is expected to be very good over the coming weeks.

Warm Water Lobster Tails- Market is firm. The market has continued to push higher over the past several weeks as the active demand is keeping pressure on limited inventories. Low production the past few years and seasonal closures are keeping pressure on availability. Allocations to orders are common due to the limited inventories.

North American Lobster Tails- Market is firm. Demand continues to improve and putting pressure on very limited inventories. Seasonal plant closures combined with poor fishing conditions are causing additional issues with the limited availability. Shorts and allocations to orders should be expected.   

Salmon- Market is firm. Demand has been improving around the world and keeping pressure on available inventories. This combined with ongoing logistical concerns is helping to keep pressure on the market. Inventory availability varies between suppliers helping to cause larger swings in prices.

Cod- Market is firmer. Product out of the Pacific is seeing inventories concerns with a strong demand that was seen during Lent and limited available inventories in the market. Foodservice demand is very good. There also delays with production coming back out of China putting additional pressure on the market.

Flounder- Market is steady to firmer. Pricing is expected to be higher as we move through Q2 as suppliers’ costs are being impacted by tariff increases. Production issues and delays out of China are causing additional issues for the market.

Haddock- Market is steady to firmer. Inventories are light for an active demand. Increased tariffs combined with higher production costs and more limited inventories are putting pressure on the market.

Pollock- Market is steady to firmer. Demand in Europe is very strong. Larger sized product is in limited supply due to recent catches being more on smaller sized fish. Production delays in China are putting additional pressure on the market with reports of port delays backing up shipping lanes.

Domestic Catfish- Market is firm. Inventories have been limited for several months and the easing of dining restrictions across the country is putting additional pressure on the market. Allocations remain commonplace and are anticipated as we move into the summer. Inventories are limited on all sizes and well below current demand.

Tilapia- Market is firmer. Higher production and logistical costs are putting pressure on the market. Shipment delays on product coming out of China are expected over the coming weeks. Buying activity is improving as more dining restrictions ease across the country.

Swai- Market is firmer. Foodservice demand continues to improve across the country, and this is putting upward pressure on the market. Logistical concerns remain an issue with higher freight costs and longer lead times on both ocean freight and trucking.

Scallops- Market is steady to firmer. The market for larger sized domestic product is firm with increased demand keeping pressure on the market. Inventories of U/10 product is very limited with record high pricing. New season fishing has begun but reports are showing expectations of inventories issues as we move into the summer. Current landings have not been enough to relive the pressure from the surge in Foodservice demand.

Market is unsettled. The CME block and barrel markets moved higher then lower this week. Milk supply availability across the country is good amid the current spring flush season. In the northeast, production is active. Both mozzarella and provolone production are strong. Inventories are steady at the present time. Retail demand in the region is healthy. Foodservice demand is stronger than in weeks prior. In the Midwest, producers report active production schedules. Overall demand is strong with inventories healthy. Western producers report healthy retail demand with foodservice moving higher. Milk is plentiful in the region which is keeping production schedules full. Barrel inventories are tighter and block inventories are available.

Market is weaker. The CME butter market moved lower this week. In the northeast, production is stable. Inventories are increasing slightly. In the central region, retail demand has steady. Foodservice interest in the region seems to have plateaued from week over week increases seen over the last month. In the west, cream is bountiful for production. Inventories are stable. Foodservice demand continues to trend upward as restrictions are beginning to relax.

Market is steady. Retail activity had been trending soft for the last month and now appears to have stabilized. Limited regional promotions are being reported. Foodservice volume is trending steady with some improvement as more states relax their dining restrictions. Fast food sales remain constant for this time of year. Supply is available on both medium and large sizes. Market is trending flat on medium sizes and lower on large sizes. National weekly shell egg inventory reports shell egg inventory up 2.1% over last week.

Market is firmer. Soybean markets continue to be volatile and are being pressured as we move into the month of May. Demand continues to outpace supply. Rising demand from the export channel combined with additional needs from the bio-diesel sector is keeping the market pressured. Reduced crush numbers and plant down time is also adding pressure to the market. Dry conditions continue to have a negative impact on the crop in Brazil and Argentina. The planting season in the United States has started and early reports show acres planted to be on track compared to the five-year trend. Some industry reports are starting to suggest that the United States may need to import soybeans soon. The market remains volatile and continues to change daily as new information becomes available. Allocations on soy oil and other related products continue to be reported across the United States. It is anticipated that this trend could continue through the summer.

GLOVES

Additional production capacity is now to emerging for vinyl. The vinyl glove market is seeing downward pressure as additional supplies are now available. Supply is expected to be stable for the near future which will place additional pressure on the market. Vinyl/nitrile blend availability is stable at the present time though no softening of the market is expected. Latex gloves are seeing a resurgence in interest as nitrile supply remains tight. Supply of latex has become increasingly unstable as the demand has increased. The nitrile market has seen increased capacity recently. Though priority is still going to the healthcare industry, other industries have yet to experience an increase in availability. Poly resin markets have been unstable and rising though supply and availability are good. In transportation news, both domestic transportation as well as ocean freight operations continue to battle multiple challenges as attempts are made to keep up with increased traffic. There have been some improvements recently, as wait times on the water for incoming ocean freight are improving. Improvements in congestion are anticipated over the coming months.

CANNED GOODS (DOMESTIC)

Several factors are going to come into play for the outlook on costs for domestic canned goods for the 2021 pack season. Produce costs are up over last year driven by the price of soybeans and field corn. The cost of steel is in tight supply and will have a direct impact on the cost on #10 cans. Labor is in high demand and driving costs up as well as freight is higher than last year.