close window

COMMODITY FOOD MARKET UPDATES:   w/o  February 6th, 2023

Source: Uni-Pro Foodservice Market Insights
CATEGORY NEAR-TERM MARKET PRICING TREND SUPPLY vs. DEMAND DSR MARKET INSIGHTS COMMENTARY
Beef (Commodity) Steady Available - Steady February is the most challenging and lowest volume beef month of the year for the beef industry. Expect rib prices to continue to soften. The rest of the complex will feature stability. Appreciation will being in mid March as the 2023 grilling season approaching sparking sharp middle meat price increase.  
Butter Stable Available - Steady Butter and butter cream continue to remain readily available and relatively low after elevated market prices ruled in 2022. Demand has been observed to be softening, which supports that relatively lower pricing. U.S. milk December production came in lighter than anticipated, and so that may provide support for elevated prices.
Fluid Dairy Class I - Steady                Class II - Higher Class I Available - Steady     Class II Short - Strong February Milk (Class I) and Cultured (Class II) pricing is easing lower. UHT cream production remains extremely short. May have to offer fresh cream as an alternative. Fluid dairy shortage worst in the northeast and has expanded across the southeast and north central areas.  Five 5 major plants closed in 2022. FL, SC, AL, MS & IL.
Cheese Stable Available - Strong Block pricing remains relatively flat in the U.S. and there still is plenty of supply  to go around. Barrel pricing has softened. European cheese prices have continued their sharp decent, which may be driven more by oversupply than lower demand. Back to the U.S., supply remains available and so there is little concern from that standpoint.
 Oils/Shortening/Margarine Stable Available - Steady Prices on commodity oils are slightly lower in recent days versus late 2022 levels based on erratic stock market trends. However, they are still much higher than levels of prior years and are not expected to return to such low levels in the future. We do not expect to see any major fluctuations in pricing on either Commodity or Value Added shortening and oils or margarine in the near term.
Pork (Commodity) Stable Available – Steady After a rally of buying activity around the butt, the butt price has increased and should stabilize for the remainder of February. With significant supply of ribs, both spare ribs and back rib prices should remain stable and well below last year's pricing for this time of year.
Pork (Value-Added) Stable Available – Steady Increases in pork trim values should result in modestly increasing values for pizza toppings, franks, and sausage. Price for bacon should increase near 25% by the end of March.
Poultry (Chicken) Stable Available – Steady Prices for most chicken items (breast meat, tenders, wings, etc.) have risen in the last several weeks and are forecasted to continue rising through the winter. However, chicken prices are well below their peaks from mid-2022 and supply is in a much better position.
Poultry (Turkey) Stable Short – Strong  Fresh Breast meat prices remain at record highs, as do the rest of the parts of the bird.  Availability on whole toms and hens is scarce with prices remaining at record highs.  This trend is expected to continue through the end of the year.  HPAI is beginning to become more widespread again which is going to significantly affect supply well into 2023.
Produce Lower -   Onions                   Steady -  Oranges, Apples, Iceberg & Romaine                                   Higher -   Strawberries, Tomatoes & Idaho Potatoes    Improving/Steady - Iceberg, Romaine, Onions & Oranges              Good/Strong -   N/A                          Short/Strong -   Apples,  Strawberries, Tomatoes & Idaho Russet Potatoes Iceberg & Romaine, AZ Lettuces weights and yields have improved. Supplies have increased and pricing has stabilized.  Tomatoes, pricing steady. on rounds, higher on Romas. Strawberries demand exceeds through Valentine's Day. Quality is good. Apples, short harvest resulted in low supplies & higher markets. Oranges supplies are improving as rains ends. Pricing is easing. Onions, ID/OR supplies ample, quality excellent. Idaho Russet Potatoes, quality is good. Prices remain very elevated due to a short fall harvest. No relief until August '23.                                                                                                    
Shell Eggs Decreasing Available - Strong After the steep increases to abnormally high and unprecedented levels in the back half of 2022, egg pricing continues to retreat back to "normal high" pricing. In other words, we've come a long way but there is still a ways to go, so please continue to remain vigilant. Highly Pathogenic Avian Influenza (HPAI) threats remain in the background and supply challenges exist in certain locales.
Seafood Tilapia
Decreasing
Tilapia
Available - Weak
Tilapia supply continues to outpace demand therefore prices are starting to drop on all sizes.
Bulk Sugar Stable Mixed - Strong Bulk sugar products remain in tight supply in many markets. Pricing levels remain in higher ranges as well. Beet sugar may be very limited in some markets with historic high pricing levels expected near term. Cane sugar prices are expected to remain high as well as we move into warmer months. Brown sugar production is weaker than normal currently. That will pressure pricing and supply in the coming weeks.
Wheat (Flour Based Products) Stable Available - Steady Wheat prices have seen a slight increase in recent days due to world events causing concern over long term supply. That has not had much of an impact on bulk flour or flour based finished-goods as of yet. All eyes will be watching domestic wheat crop progress and events in the black sea area to understand what may occur long term. Supplies are still adequate to meet foodservice demand on all products.
Plastic Cups & Containers Steady Available - Steady The resin markets are unremarkable with no real tendencies upward or downward on your polypropylene hinged containers, OPS containers, PET containers, translucent and PET cups.  Sluggish demand continues to be a concern.
All UniPro Foodservice DSR Market Insights information is based on domestic US market data only, unless indicated otherwise. The UniPro Foodservice Market DSR Insights update is not a recommendation to buy or sell a commodity.  While this update is based on sources we believe to be reliable and accurate, UniPro Foodservice does not guarantee the accuracy of the information presented.