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Packers once again are dealing with higher cattle prices and have seen their margins slide back to the negative. They will be looking to reduce production hours into January.
Two farms in Iowa tested positive for HPAI resulting in approximately 5.9 M egg layers lost. An additional organic egg laying farm in Missouri also had 20 K birds lost.
The market is seeing some excess supply, so some offerings were down. Jumbo breasts are seeing excess supply. Medium and small breasts are steady. Jumbo tenders have some availability. Wings are seeing extra availability but they are beginning to tighten. Dark meat is starting to weaken. Whole birds are mostly balanced.
Butts both Bone–in and boneless are steady. Loins are steady with adequate supply. Ribs see adequate supply now and their unseasonal peak has maxed out. Bellies are expected to continue to decline as availability on the spot market is high. Trim is now most steady.
Ribs and tenders are still the main focus. Ends cuts moved lower in price during November but prices have leveled off to start December. Ground beef prices still hover around the lows of 2024 but should see a rebound as we get into January. Price of cattle moved higher over past week and packers are talking about hours cuts as we head into January.
Shell egg are up this week. Two farms were identified as HPAI positive in Iowa with a loss of 5.9M birds and a farm in Missouri with loss of 20K birds. The Block is down & Barrel are up. Blocks have settled at a premium to Barrels for 2 weeks in a row. Butter is up.
Futures declined last week as palm oil began to move lower. The speculative funds, then, sold off many contracts adding to the falling soybean market. Canola is moving with soy, to a degree, but with the possible 25% tariff being put on Canada, basis has begun to firm and suppliers are selling spot only if you were not covered.
Markets are higher on both coasts due to lighter supplies and holiday pull. Market should stay strong for the next 4–6 weeks pending full transitions in growing areas.
East – Bell Pepper remains extremely tight. Very little availability in the southeast with very low yields. This is expected to continue until mid–January. Red and yellow bells are also extremely limited supply.
West – Full transition this week has all peppers in demand exceed. Green volume to increase late next week but all color peppers will remain extremely limited for three weeks.
Market is still elevated but is softer, as supplies remain slow to come on. Expect volume to improve the next 10–14 days if weather holds. Quality is good to very good.
Suppliers watching averages on commodity and VA, subbing sizes will be needed to get to averages on commodity.
Market is a bit lower as adequate product is meeting the current demand and additional regions are starting to pack.
Market is steady on both Cilantro and parsleys with moderate to good demand. Some occasionally yellowing noted for both, but overall quality is good.
East – Corn supplies out of Florida will be tight due to planting gaps that occurred during Hurricane Milton. This gap may last up to 10 days or so.
West – Supply will show improvement into the first week of January as transition production will improve. Market is steady and quality is good.
East – Supplies much lighter. Growers still have gaps in production from previous storms, as well as cooler weather. The market is strong, and demand exceeds supply.
West – Increasing volume, decreasing market. Demand is strong.
Supplies are improving and weights are better but still slightly lower than normal. The market is starting to come down.
Market starting to come off on good demand and moderate to good supplies in Yuma. Heart market is dropping but a bit slower that romaine.
Supplies are good on new crop yellows and reds from Washington and Idaho. Whites are lighter in supply this season. Demand is good on all colors. Quality has been good, with good sizing. Prices are steady on Yellows reds and whites.
Supplies are good on the new crop. The sizing is heavy to large with most growers being lighter on small sizes. Quality is good. Prices are steady.
East – Plenty of yellow and green squash in Florida. Markets to stay on the lower side until the next cold snap.
West – Supplies have improved, and market is lower for both green and yellow. Quality is excellent.
Market remains on alert due to significantly reduced availability both east and west from recent weather conditions in Florida combined with reduced availability of CA & MX. Market is not expected to improve until mid–January. Quality varies amongst growers.
Prices may have peaked. Industry seeing Field prices remain higher than normal as packing restrictions continue to limit the amount of fruit coming into the US. With holiday promotions coming soon, overall demand and market conditions will remain strong. Quality continues to be fair.
Lemons – Demand is steady. Fruit quality is excellent, and the peak sizes are 115s, 140s and 165s followed by 95s. Pricing for smaller sizes is strengthening due to the shift in sizing.
Oranges – Demand is steady. Pack outs are heavier to fancy grade, and the peak sizes are 113s,138s and 88s.The fruit quality is excellent. Pricing for the smaller sizes is stabilizing while the pricing for 88s and larger are holding due to lighter supplies.
Limes – 110s/150s remain in good supply, and this current crop continues to size up. New crop limes are just around the corner and should begin to provide additional smaller fruit initially. The new crop we are heading into is one of the lower volumes of crops each year, so overall supplies will continue to decrease. The quality of the fruit remains good, but expect pricing to continue to increase as demand.
Domestic Red Grapes still available as imports flow in slowly for reds. Greens are all gone on domestic. Imports look great, but both red and green are very high in price and expected to stay there for most of December.
Supplies are declining in California due to typical Cool winter weather and shorter days. Florida and Mexico volume has not kicked into high gear yet leaving the industry in short supply. We will likely start to see order prorates.
