Current Market Report
Below you will find helpful reports on various commodities.
INDUSTRY COMMENTARY
Wednesday, February 13, 2008
Dear Valued Customers and Friends,
We have received overwhelming feedback from our customers, suppliers and friends
asking how they can help the families affected by the tragedy in Savannah.
In response to this outpouring of support, we want to inform you that we joined with
the United Way of the Coastal Empire in our efforts to raise funds to help the
families affected by the accident in Savannah. All of the funds raised in this
effort will be dedicated to assist the people impacted and their families. The
United Way will administer the funds and disburse to those affected by this tragedy
on a needs basis.
Tax deductible donations can easily be made to the ISC Savannah Associate Relief
Fund two different ways:
- Donors can send checks or money orders to United Way of the Coastal Empire, ISC
Savannah Associate Relief Fund, 428 Bull Street, Savannah, Georgia 31401.
- Bank of America will be accepting contributions for the fund at any of its
branch offices nationwide. (Note: Acceptance at branch offices will be available
after Tuesday, February 19th)
Thank you for your continued support and prayers.
Sincerely,
John Sheptor
President and CEO, Imperial Sugar Company
imperialsugar.com
PORK COMMENTARY
Pork production last week declined 2.9% but was 14.7% larger than the prior year.
The latest run up in pork prices has been significantly stronger than anticipated
brought on in part by weather induced hog transportation challenges. Recent pork
demand has been impressive however we are leery of the current elevated pork markets
because of the considerable increases in output so far this year. The pork markets
could turn lower shortly.
| Pork |
|
Price |
Last Week |
Difference |
Price 06 |
| Belly (Bacon) |
0.800 |
0.770 |
0.030 |
0.950 |
| Ham (23-27 lb.) |
0.560 |
0.530 |
0.030 |
0.600 |
| Loin (Bone-In) |
0.725 |
0.738 |
-0.013 |
0.825 |
BEEF, VEAL, AND LAMB COMMENTARY
Beef production last week rose 1.1% and was .5% above last year. However, beef
output has been curtailed early this week adding support to beef prices. As of
Tuesday afternoon, the daily USDA choice and select beef cutout indexes were trading
at their highest price levels since last spring. Buyers are beginning to resist the
inflated beef prices. In addition, during the last 3 years, the choice market index
peaked sometime near Valentines Day. In turn, overall beef prices are anticipated to
shift downward soon.
| Fresh Ground Beef |
|
Price |
Last Week |
Difference |
Price 06 |
| 81/19, Fresh |
1.345 |
1.320 |
0.025 |
1.418 |
| Ground Chuck |
1.386 |
1.339 |
0.047 |
1.485 |
Special fed veal carcass prices were steady to lower on light to moderate demand and
moderate offerings. Harvest numbers and dressed weights increased slightly last wee
causing concern among packers as inventories on cuts continued to increase. Futures
contracts for early July lower as packers try to establish lower prices for the
seasonally light demand summer period.
| Lamb |
|
Price |
Last Week |
Difference |
Price 06 |
| Lamb Rack |
5.927 |
5.910 |
0.017 |
5.925 |
| Lamb Leg |
2.692 |
2.696 |
-0.004 |
2.336 |
POULTRY COMMENTARY
The recent strength of the surge in chicken prices has been surprising due to the
solid gains in chicken production and ample alternative protein supplies. Chicken
supplier margins have likely improved but are still traditionally poor. However,
chicken producers may be less apt in the near term to curb chicken output due to the
recent price gains and expected seasonal spring upward pressure on the chicken
breasts markets. History suggests that wing market decreases may be impending. Last
year, the ARA chicken wing index declined 10.6% during the next 3 weeks.
| Chicken |
|
Price |
Last Week |
Difference |
Price 06 |
| Whole Birds (2.5-3 lb.) |
0.785 |
0.780 |
0.005 |
0.733 |
| Breast, Boneless Skinless |
1.415 |
1.365 |
0.050 |
1.485 |
| Turkey |
|
Price |
Last Week |
Difference |
Price 06 |
| Whole Birds (8-16 lb.) |
0.755 |
0.740 |
0.015 |
0.690 |
| Breast, Boneless Skinless |
1.718 |
1.753 |
-0.035 |
1.725 |
SEAFOOD COMMENTARY
ISA disease problems in various Chilean salmon farms are causing Chilean output to
fall below expectations. Recently, 3.4 thousand tons of salmon (about .5% of total
annual Chilean exports) were destroyed due to the disease. Currently 11 Chilean
salmon farms are reported with outbreaks but another 16 are being investigated. If
this problem persist, salmon filet prices may become especially volatile during the
spring.
| Seafood |
|
Price |
Last Week |
Difference |
Price 06 |
| Salmon (wh 10-12 lb.) |
2.933 |
2.917 |
0.016 |
3.475 |
| Yellow fin Tuna (whole) |
8.827 |
8.703 |
0.124 |
7.950 |
| Catfish Filets |
3.175 |
3.175 |
0 |
3.800 |
| Shrimp (16/20 ct), Frozen |
6.914 |
6.914 |
0 |
5.018 |
| Shrimp, Tiger (26/30 ct) |
4.388 |
4.388 |
0 |
4.730 |
| Crab, Lump Meat |
10.825 |
10.700 |
0.125 |
8.950 |
| Cod Tails, 3-7 oz. Frozen |
3.719 |
3.719 |
0 |
3.500 |
| Cod Loins, 3-12 oz. Frozen |
4.442 |
4.442 |
0 |
4.150 |
| Salmon, 4-8 oz. Frozen |
4.567 |
4.567 |
0 |
4.860 |
OIL & GRAIN COMMENTARY
Besides the current shortage of hard spring wheat, the markets will be focusing on
farmer grain planting intentions in the coming weeks. Inflated grain prices should
endure.
|
Price |
Last Week |
Difference |
Price 06 |
| Corn, bushel |
4.859 |
4.748 |
0.111 |
3.703 |
| Soybeans, bushel |
12.588 |
11.983 |
0.605 |
7.038 |
| HRW Wheat, bushel |
10.100 |
9.450 |
0.650 |
4.620 |
| DNS Wheat 14%, bushel |
15.148 |
13.840 |
1.308 |
4.955 |
PAPER/PLASTICS COMMENTARY
| Wood Pulp (Metric ton 3yr.) |
Price |
Last Week |
Difference |
Price 06 |
| NBSK (napkin, towel) |
860 |
860 |
0 |
790 |
| SBS (foodservice box) |
620 |
620 |
0 |
515 |
| Plastic Resin (lb. 20m ann. Vol.) |
Price |
Last Week |
Difference |
Price 06 |
| Ps-CHH (cup, container) |
0.860 |
0.860 |
0 |
0.840 |
| PP-HIGP (Heavy Utensil) |
0.940 |
0.940 |
0 |
0.710 |
| PE-LLD (can liners, film) |
0.875 |
0.845 |
0.030 |
0.605 |
DRY BEANS COMMENTARY
International dry edible bean markets maintained their firm tone through the past
week, against high trading levels for both South and North American product.
North America's spot market index for dry edible beans finished the week at 1199, up
10 points from the previous week and compared to 899 at this time last year.
The grower index finished up 8 points at 1083, versus 836 at this time last year.
The grower share of the weighted average dealer price for beans now stands at 80.8%,
down 0.1 points from last week and down 2.3 points from this time last year.
statpub.com
| Domestic Bean |
| |
Price |
Last Week |
Difference |
Price 06 |
| Pinto Beans, lb. |
0.270 |
0.270 |
0 |
0.228 |
| Black Beans, lb. |
0.288 |
0.288 |
0 |
0.228 |
| Red Beans (small), lb. |
0.317 |
0.317 |
0 |
0.215 |
| Rice, Long Grain |
0.244 |
0.238 |
0.006 |
0.199 |
DAIRY COMMENTARY
The cheese markets continue to trade at inflated levels. Cheese producers are
hesitant to manufacture cheese as they don’t want to get trapped with expensive
inventory. At the same time, cheese buyers are resisting purchases for the same
reason. The long and the short of it is that both ends of the supply chain are
expecting lower cheese prices in the forthcoming months. Still, there is some
speculation that cheese output capacity may not be enough this spring. The butter
market is depressed.
| Cheese |
| |
Price |
Last Week |
Difference |
Price 06 |
| Barrels (CME) |
1.930 |
1.723 |
0.207 |
1.400 |
| 40 lb. blocks (CME) |
1.938 |
1.710 |
0.228 |
1.360 |
| Swiss |
2.890 |
2.780 |
0.110 |
2.205 |
CRUDE OIL COMMENTARY
Crude oil was little changed in New York amid speculation U.S. demand for fuels will
drop after a report showed that consumer confidence slumped to the lowest level
since 1992.
The Reuters/University of Michigan index of consumer sentiment declined to 69.6 in
February from 78.4 the previous month. The Organization of Petroleum Exporting
Countries cut its estimate of oil demand growth this year on the threat of a U.S.
recession. The U.S. consumes about a quarter of the world's fuel.
Brent crude for April settlement dropped 53 cents, or 0.6 percent, to close at
$94.63 a barrel on London's ICE Futures Europe exchange. Futures reached $95.80, the
highest intraday price for a contract closest to expiration since Jan. 9. Brent
touched a record $98.50 on Jan. 3.
Bloomberg
SUGAR COMMENTARY
Sugar extended a rally to an 18-month high on concern that freezing temperatures in
China, the third- largest producer, may have harmed cane crops as investors continue
to boost stakes.
Damage from the cold weather is still being assessed, sugar analyst Li Tiantian,
with Tonglian Futures, told Interfax Information Services. Still, Tiantian said ``a
more pessimistic take'' is that sugar output in the Guangxi region, the country's
largest producer, may drop as much as 1 million tons this year from the original 8
million-ton forecast.
“There is a report that there is damage in a major growing area in China,” said
Anthony Compagnino, a partner at East Coast Options Services Inc. in New York.
“That, plus fund and speculators buying with the dollar weakness” supported futures,
he said.
| World Sugar Market |
| |
Price |
Last Week |
Difference |
Price 06 |
| Sugar (#14), lb. CSCE |
0.201 |
0.201 |
0 |
0.206 |
CANNED & FROZEN COMMENTARY
Our initial forecast for 2008 US tomato for canning output is 11.8 million tons
which if realized would be 6% less than last years large production total. The
canned tomato markets are fairly stable.
| Canned Tomato Products |
Price |
Last Week |
Difference |
Price 06 |
| Whole Peeled, Standard |
11.313 |
11.313 |
0 |
10.938 |
| Diced, Fancy |
12.750 |
12.750 |
0 |
12.375 |
| ketchup, 33% |
13.625 |
13.625 |
0 |
13.188 |
| Sauce |
11.063 |
11.063 |
0 |
11.000 |
| Crushed & Concentrated |
12.063 |
12.063 |
0 |
11.875 |
The canned corn market remains relatively firm. Corn canners are attempting to
contract acreage for 2008, but raw product will come at a premium due to inflated
alternative grain crop prices.
| Canned |
Price |
Last Week |
Difference |
Price 06 |
| Corn, fancy whole kernel |
15.063 |
15.063 |
0 |
12.375 |
| Green Beans, fancy 4 sieve |
14.688 |
14.688 |
0 |
13.031 |
| Green Peas, fancy 4 sieve/blend |
15.750 |
15.750 |
0 |
14.792 |
| Sweet Potatoes, fancy 30/40 |
21.000 |
21.000 |
0 |
20.250 |
| Frozen |
Price |
Last Week |
Difference |
Price 06 |
| Broccoli Spears, domestic 12/2 lb. |
14.850 |
14.850 |
0 |
14.700 |
| Corn, kernel 12/2.5 lb. |
15.750 |
15.750 |
0 |
14.625 |
| Green Beans, cut 12/2 lb. |
13.500 |
13.500 |
0 |
12.900 |
| Green Peas, 12/2.5 lb. |
16.125 |
16.125 |
0 |
15.750 |
| Spinach, chopped 12/3 lb. |
18.225 |
18.225 |
0 |
18.200 |
Market Data from Foodservice.com unless
noted.