With just a little bit of rain in the Salinas Valley and warm daytime temps, we may see some fields come off a little early.
Oil content will improve weekly; flavor is light.
Lemons market is off. District 3 is going with a bit of gassing to color up. Peaking mostly smaller sizes.
Yellow Squash and Zucchini:
Good supplies from South Georgia. Prices are lower. Light supplies from Michigan and South Carolina due to seasonal decline. Quality is good.
Green, Red and Romaine are all up and with the season winding down pricing looks to be going up steadily. Green & Romaine are both active.
Celery supplies are steady with normal demand. Suppliers are now gearing up for the Thanksgiving push.
Loins- Just Steady
Chucks- Just Steady
Grinds- Just Steady
Whole broiler/fryer prices are steady to weak. Offerings of all sizes are sufficient. Retail and food service demand is light to generally moderate.
Floor stocks are mostly balanced. Dealers in the South are assessing the effects of hurricane Michael as it moves out of production areas. Market activity is slow to moderate.
In the parts structure, boneless skinless and bone-in breasts is steady to weak, wings steady, and tenderloins steady to instances firm.
The market on dark items is steady to weak. Supplies of tenders are mostly moderate; wings and dark meat cuts are moderate to mostly heavy.
Bone-in and boneless skinless breasts are available and slow to clear. Market activity for parts is slow to moderate.
In production areas, live supplies are moderate mixed but mostly desirable weights.
Hams- Just Steady
Butts- Steady to Lower
Ribs- Just Steady
Trim- Just Steady
Loins- Steady to Lower
The market on frozen 2018 8-16 lb. hens is steady to firm. The market on 16-24 lb. toms is unsettled ranging from weak to firm in response to offering prices on 2018 production widening trending both higher and lower for current deliveries. Frozen demand light to moderate. Fresh demand mostly moderate for November shipments.
Processor offerings of frozen Grade A 10-16 lb. hens range from short of needs to light. Frozen 16-24 lb. tom offerings from 2018 production light to moderate, instances moderately heavy. Offerings of 2017 production very light to moderate with toms the most available.
Frozen Grade A basted equivalent processor offering prices on a national basis from 2018 production for 8-16 lb. hens are 78.00-89.00 cents FOB and 16-24 lb. toms 76.00-86.00 cents FOB for current deliveries.
Trading slow to moderate on frozen basted equivalent hens at 82-86 cents FOB and on 16-24 lb. toms at 76-86 cents FOB for current shipments and slow on frozen basted equivalent 8-16 lb. hens and 16-24 lb. toms at 84 cents FOB for November deliveries.
The market on white meats and white trims is steady with a few seeing weakness on frozen destrapped tenderloins. Demand on fresh white meats and white trims moderate. Demand on frozen white meat and trims is light to moderate. Offerings very light to moderate.
The market on institutional sized bone-in breasts is steady to firm. Demand and offerings light to moderate.
The market on tom bulk parts is steady to firm. Demand generally moderate. Offerings light to moderate.
The market on fresh thigh meat is steady while frozen is steady to weak. Demand light to moderate. Offerings of thigh meat light to moderate with fresh held with the most confidence.
The mechanically separated turkey market is steady to weak, mostly steady to barely steady. Demand light to moderate. Offerings light to mostly moderate. Trading slow.
Pricing will remain firm as we move toward the end of the year.
Supply will be tight as the majority of the quota has been caught and the quota reduction expected for 2019.
Icelandic Cod: New season has begun, landings and demand in Europe with dictate the market.
Due to the cuts in the Barents Sea and high demand from Europe, we anticipate pricing to firm.
Russian fleets have been experiencing better catch rates causing prices to temporarily stabilize.
We will keep our eyes on the demand of the refresh market –their steady demand could keep prices at a high level.
Quotas are not expected to change as we head into 2019.
Pricing continues to firm as people switch from Cod to Haddock.
Icelandic Haddock: New season has begun, landings and demand in Europe with dictate the market.
Due to the cuts in the Barents Sea and high demand from Europe, we anticipate pricing to firm.
There is more demand than supply of 8-10oz and 10-12oz and we expect limited inventories as we move into Q4.
2018/2019 quotas have been increased by 45% over last year. We will be monitoring the global market due to the decrease in quota coming out of the Barents Sea.
Supply continues to be tight and demand in Europe and US continue to be strong.
Prices are expected to firm as we head into the A Season (January)
Although prices are firming, Pollock continues to remain a great value.
Supply continues to be tight as current landings are behind this same period in 2017.
Fillet supply is improving on 2-5 oz, while 6-8 oz continue to be very tight.
Prices remain firm as the demand continues to rise.
3 oz is readily available
Pricing will remain stable in Q3.
We expect demand to strengthen as we head into the 2018 fishing season.
2018 forecasts show a 50% cut from last years catches, due to the natural cycle of Pacific Salmon, which will affect 2019 prices.
Cold Water Shrimp:
Due to shortness in the market, inventory is tight and prices are firming.
U.S Atlantic Sea Scallops:
Fishing began on April 1st and landings have been good.
Sizes caught are predominantly 10/20 ct and pricing has been stable. We could see pricing firm in Q4 as the remaining quota is fished.
Landings of 20/30ct are low and causing prices to firm.
US imports continue to decline and prices remain at a multi-year low. The market is expected to remain stable through 2018.
Pricing is expected to remain stable through the end of the year for Chilean product.
Prices continue to strengthen as we will see decreased volumes in the back half of 2018 and packers put a priority on the fresh market.
Norway/Faroe Island –Prices are expected to remain stable through Q4, however we do anticipate pricing to firm as we head into 2019.
White Water Shrimp:
White Shrimp prices have stabilized. A few select sizes have firmed due to availability.
Black Tigers –Prices are expected to remain stable as the availability of product increases.
While cheese production is increasing in the Midwest and West, maintenance and upkeep at plants in the Northeast have slowed some production there.
Milk intakes are steady to lower into cheese manufacturing. The reported spot milk range in the Midwest was from Class to $1.50 over, but some contacts suggest they are hearing premiums are bound to increase near term.
Gift package cheese ordering is in full swing, and Western contacts suggest mozzarella buying is vigorous.
The large block to barrel price gap at the CME is doing little to pacify concerns from cheese contacts across the country.
Butter production is mixed, driven by cream availability in each region of the country. For example, in the East and Central regions, cream supplies are slighter than expected for this time of the year.
Thus, butter churning has been lower to steady in these two regions. In contrast, in the West, butter production has been very active throughout the week as cream supplies remain enough to support the strong regional butter churning.
Nationwide, the demand for butter is generally improving ahead of the upcoming year-end holiday needs.
Bulk/print butter inventories vary across the country.
Based on the CME Group, with various periods and averages used, this week, bulk butter pricing varies among regions:
East, 5.0 cents to 8.0 cents above the market
Central, 2.0 cents to 7.0 cents above the market
West, 0.0 cents below to 7.0 cents above the market
Fluid Milk and Cream:
Regional contacts are reporting that the competition is on among processing facilities in the Midwest in vying for milk.
As component levels continue to be reported at low levels, and milk has been diverted from the Upper Midwest and Northeast to Southern and Southeastern regions, a peripeteia of sorts has happened for cooperatives and milk suppliers. Instead of making calls to find prospective buyers, they are being called, and in some cases simply do not have the available milk supplies which were present as recently as a month ago.
Milk bottling, in and out of the region, is a large cause for the shortening supplies. All that said, some producers relay that the bottling pipelines are settling in and more milk loads are expected near-term.
Some Midwestern cheese producers suggest that cheese markets are not stable enough for them to take on extra milk, and at any rate, spot offers are scarce.
Spot milk headed into cheese vats reached a $2 premium over Class this week.
With lower milk fat levels reported, cream prices lifted on the bottom of their respective ranges.
Butter makers are running the churns on a necessity basis, but some have suggested fall inventories are beginning to be chipped away at by consistent, and increasing, demand.
Wet weather from the Upper Midwest to the Southern Central area has set some farmers back somewhat.
Delayed soybean harvesting, and moisture related mold have been reported in the Midwest; whereas areas in the South-Central region have been hammered by heavy rains just after/during planned wheat planting.
New York egg prices are 1 cent lower for Medium and larger sizes. California and regional prices are steady. The undertone is steady to weak. Supplies are mixed, but usually moderate for current needs. Demand ranges light to fairly good, mostly moderate.
Transportation issues are reported in areas of the Southeast affected by Hurricane Michael. Offerings are light to usually moderate. Market activity is slow to moderate.
Breaking stock supplies are moderate; demand is light.
Spent hen supplies are sufficient for normal to reduced processing schedules.