MarketNews Report · 2020. 10. 12. · 9% (from $1.41 to $1.53 per dozen) and is firm headed into...

MarketNews Report

Market updates

from The Plastics

Exchange

Flour Facts

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USDA Weekly Livestock,

Poultry & Grain Market

Highlights

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Summary

Pork Market

Commentary

Rice Production

update Crop Update

Click on the link below to view updates:

Dairy Market Link

Produce Weekly

Link

Market Report -

Eggs

Produce Market

Update

https://www.ams.usda.gov/market-news/chicago-mercantile-exchange-cash-dairy-markets

https://www.primoproduce.com/category/market-report/

Egg Markets Week of August 31, 2020

TONE: Retail demand fair to good. Supplies in good balance. Market steady.

The regional egg markets are as follows:

Northeast Midwest Central Southeast

Lg $1.01 $0.97 $1.08 $1.06

Md $0.77 $0.73 $0.76 $0.77

Source: Esbenshade, Inc.

______________________________________________________________________________

Egg Markets Overview

The weekly Egg Markets Overview is now available on our website and may be accessed by clicking on the link or graphic below.

https://www.ams.usda.gov/sites/default/files/media/Egg%20Markets%20Overview.pdf

https://www.ams.usda.gov/sites/default/files/media/Egg%20Markets%20Overview.pdf

Source: USDA AMS Agricultural Analytics Division Egg Markets Overview

Wholesale prices for cartoned shell eggs held steady through the week with a continued steady undertone. Supplies are mostly moderate and light to moderate offerings are helping to hold the price line. The wholesale market for loose eggs came into the week still coasting upwards from last week’s push but early gains were lost by week’s end with a weak to lower undertone. Supplies are moderate and balanced while offerings remain light to moderate. The pace of trading for both markets is moderate. Prices for national trading of trucklot quantities of graded, loose, White Large shell eggs increased 2% (from $0.566 to $0.576 per dozen). The wholesale price on the New York market for Large cartoned shell eggs delivered to retailers was unchanged at $0.97 per dozen with a steady undertone. The Midwest wholesale price for Large, white, shell eggs delivered to retailers increased 23% (from $0.64 to $0.79 per dozen) and has a firm undertone into next week. This week, prices paid to producers increased 3% early on before steadying (from $0.60 to $0.62 per dozen) by week’s end. The California benchmark for Large shell eggs was up 9% (from $1.41 to $1.53 per dozen) and is firm headed into next week. Delivered prices on the California wholesale loose egg market increased 7% for the week (from $0.988 to $1.058 per dozen) but trading has slowed and a steady undertone prevails. Consumer demand for cartoned shell eggs continues to improve and is now above average for the first time since Memorial Day as the market moves into the start of the traditional strong demand period headed into September. Labor Day, the traditional last hurrah of the summer is just around the corner. Demand on the loose egg market has slowed as marketers have made good progress in building their supplies back to more comfortable levels but offerings are reduced in favor of anticipated increased carton business. The impact of pandemic mitigation efforts on seasonal consumption patterns heading into the new school year is yet to be fully assessed but early indications suggest some negative influence on consumer demand as current levels remain well below last year’s pandemic-free levels. One positive, wholesale prices in late August-September 2019 were 20% higher than they currently stand which should have a positive affect on demand. Supermarket feature activity for conventional shell eggs increases marginally over the past cycle and the average ad price decreased 6% (from $1.16 to $1.09 per dozen). Featuring of specialty types increases from last week’s pace and nutritionally-enhanced offerings dominate with organic and cage-free types offered in equal share. Feature activity for UEP-defined cage-free shell eggs declines from last week’s pace and accounts for 25% of all shell eggs on feature. The average ad price gains 4% (from $2.44 to $2.54 per dozen), widening the ad price spread between cage-free and the average ad price for 12-packs of Large conventional shell eggs to $1.45, ($.17 per dozen; 13%). The overall inventory of shell eggs drew down 2% as did the nation-wide inventory of Large eggs as suppliers moved to support the uptick in retail activity over the past week. The inventory of Large eggs in the key Midwest production region decreased 7% as egg stocks that had been staging to meet anticipated increased seasonal demand moved into

Egg Markets Overview

A weekly publication of the USDA AMS Livestock and Poultry Program, Agricultural Analytics Division August 28, 2020

72.5 69.4 69.9 72.073.0 72.8 72.6 74.570.1 71.0 72.7 74.068

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70

71

72

73

74

75

I II III IV

Egg Per Capita Disappearance vs. Production (as of August 2020)2020 est. 2019 2018

Source: USDA ERS; AMS L&P Agricultural Analytics

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-10

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

week

U.S. Table Egg Demand (Shell Egg Demand Index) 2018 2019 2020

Source: USDA AMS L&P Agricultural Analytics

0

45

90

135

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52week

Loose Shell Egg, Large, White, National Index (f.o.b. dock, cents per dozen) 2018 2019 2020


Source: USDA AMS Agricultural Analytics Division Egg Markets Overview

marketing channels. The inventory share of Large class shell eggs was unchanged at a 47% share of all shell egg stocks on inventory at the start of the week. The share of stocks of ungraded eggs decreased 3% as eggs more eggs were graded to support carton business. Breaking stock inventories declined 5% as breakers drew from stocks to lessen their exposure to a strong spot market. Total table egg production for the week was unchanged from last week but is now just under a percentage point of last year – shy by about 1.1 million dozen. The wholesale price for breaking stock in the Central States held steady through the week at $0.52 per dozen after a brief fling with $0.54 per dozen that did not hold. A steady undertone prevails. Offerings are more available but are still on the low end of moderate as are supplies as breakers drew stocks down 5% last week in an attempt to minimize their exposure to what had been a very strong market. Demand is moderate to good as they seek to restock ahead of what is traditionally a strong carton demand period when offerings becomes less available. Schedules are running at full rate and trading is active. The volume of eggs processed over the past week increased 2% representing 29% of weekly table egg production. Weekly production gains ground on prior year levels and is now just 7% behind last year’s pace. Production of whole liquid eggs was up a percent while production of yolks declined 7% and that for whites down 5%. Production of dried egg gained another percentage point and is 31% over the level of production the same week last year. Production of inedible egg was up one percent. Wholesale prices for whole certified liquid whole eggs are higher with a continued firm undertone. Offerings are moderate on moderate to active trading and moderate to good demand. The wholesale price for frozen whole egg products increases 18% (from $0.57 to $0.67 per pound) while the price for liquid whites was unchanged at $0.54 per pound. The undertone is for continued higher on moderate offerings and mostly moderate supplies. Trading is slow to moderate on moderate to good demand. Wholesale prices for dried eggs are unchanged with whole dried egg at $2.05 per pound, dried yolk at $2.00 per pound and dried albumen at $4.55 per pound. The undertone is steady on sufficient offerings and light to moderate supplies. Demand is light to moderate and trading is slow to moderate. According to NASS, the July monthly volume of frozen eggs in storage decreased 3% from June, 6% over July 2019. Stocks of whole frozen egg increased a percent from last month and were 11% over year ago levels. Whole egg increased its share of total stocks by one percent to 52% of total frozen stocks. Stocks of frozen yolk swelled by 30% but were 16% under year ago stocks. Stocks of frozen egg whites grew by 14% but are 10% below July 2019. Egg whites share of total stocks gained 2% to 9% of all frozen egg stocks. Stocks of ungraded eggs decreased 11% as carton business had been fairly good throughout July. Stocks are 6% over year ago levels, though. Unclassed eggs declined 4% to a 37% share of cold storage inventory of frozen eggs. Cage-free commitments as of August 24 were unchanged, requiring 63.5 billion cage-free eggs per year to meet 100% of needs from an approximate cage-free flock of 208 million hens (66% of the U.S. non-organic flock), indicating a shortage of 140 million hens from the current non-organic cage-free flock of 68.0 million hens. The lay rate for non-organic cage-free production is currently estimated at 83.7%.

24

28

32

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40

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48

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

poun

ds (m

illio

ns)

Monthly Frozen Egg in Cold Storage (all types; end of the month) 2020 2019 2018

Source: USDA AMS L&P Agricultural Analytics; NASS

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1.5

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1.8

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

mill

ion

30-d

ozen

cas

es

week

Weekly Eggs Processed (30-dozen cases) 2018 2019 2020


6.3%

21.7%

0%

5%

10%

15%

20%

25%

30%

20202019201820172016201520142013201220112010200920082007

% o

f US

flock

Cage-Free Flock (% of total U.S. flock as of August 28, 2020) organic cage-free

Weekly Market Highlights

• Wheat futures continue to rally on increased export demand and strength in corn/soybean futures.

• Large Chinese purchases of U.S. corn and soybeans indicate China may be buying more ag products

moving forward.

• Winter wheat basis continuing to weaken as the futures markets rally.

• Spring wheat is 49% harvested as of Aug. 23, still trailing the five year average by 13%.

• U.S. Dollar index continues lower, making U.S. wheat more competitive on the world stage.

Facts on Flour The impact of millfeed

Have you ever looked in the Wall Street Journal and saw the futures price of wheat falling but the price of

flour remains the same or even rises? Part of the reason can be falling millfeed pricing. When we mill wheat,

we utilize the entire wheat kernel, less than 80% is flour but the remaining portion is sold as animal food.

This animal food, or millfeed as we call it, competes with other feed ingredients such as corn. If corn prices

are low (almost half of all corn grown is used as animal feed), millfeed prices will also be low. That "credit"

that we get by selling the millfeed will not be as great thus forcing the price on the flour to go up.

Conversely, if corn, or other feed ingredients are higher priced we get a better millfeed recovery, which

offsets more of the price of the wheat thus lowering flour prices.

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

Bu

shel

Pri

ce

Futures & Basis Markets

KC Future Spring 15% Basis

Mpls Future Winter 13% Basis

Flour pricing consists of a combination of Wheat futures

prices and Basis Premium prices per bushel. Information

contained on this chart closely resembles Gold Medal All Trumps, Mpls. Future + 15% Basis, and Harvest King, KC

Future + 13% Basis. This chart does not reflect changes in

millfeed values.

This Chart is meant to indicate Market

Direction Only.

AUGUST 27, 2020

Produce Market Update “Produce from the Ground up”

For the week of 23-Aug-2020

Grilled Fajita Salad Deconstructed fajitas create a colorful salad that’s packed with contrasting textures and flavors. The protein

choices can be varied—chicken, steak and shrimp all work equally well—and grilled vegetables, pinto beans, creamy avocados, crisp tortilla strips and a zingy serrano vinaigrette round out the hearty lunch entree.

Ingredients

• 1 tablespoon(s) butter

• 3/4 cup(s) almonds, blanched and slivered

• 16-ounce(s) spinach, rinsed and torn into bite-size pieces

• 1 cup(s) dried cranberries

• 2 tablespoon(s) toasted sesame seeds

• 1 tablespoon(s) poppy seeds

• 1/2 cup(s) white sugar

• 2/3 tablespoon(s) minced onion

• 1/4 teaspoon(s) paprika

• 4 tablespoon(s) white wine vinegar

• 1/4 cup(s) cider vinegar

• 1/2 cup(s) vegetable oil

Jalapeño Butter Serrano Vinaigrette 2 oz. margarine, at room temperature 4 oz. vinaigrette dressing 2 oz. butter, at room temperature 3/4 tsp. minced Serrano peppers 1 tbsp. minced jalapeño 1/2 tsp. minced garlic 1 1/2 tsp. minced garlic 1/2 tsp. chopped cilantro 3/4 tsp. Worcestershire sauce 1/4 tsp. freshly ground pepper 1/4 tsp. hot pepper sauce Whisk all ingredients together until well blended. 1/4 tsp. Mexican seasoning Yield: 1/2 cup 1/4 tsp. minced cilantro stems

In bowl of stand mixer, combine butter and margarine. With paddle attachment, beat until smooth and creamy. Add remaining ingredients; continue to blend on low until blended. Refrigerate until ready to use. Yield: 1/2 cup

Source: Recipe and photo courtesy of California Avocado Board, which we found on the Foodservice Director.

Preparation 1.) In sauté pan over med.-high heat, melt jalapeño butter. Add bell peppers and onions, sauté until tender crisp. Add cooked meat or shrimp; stir until heated through. Remove from heat.

2.) In large bowl, toss lettuce, pinto beans, shredded cheese, tortilla strips, Pico de Gallo, pepitas and remaining 2 oz. Serrano Vinaigrette. Arrange on plate; top with cooked fajita mixture, avocado and cotija cheese.

Weather -- Numerous high-based thunderstorms produced over 2000 cloud to ground lightning strikes in the Monterey Bay near coastal zones. Our sales office is closed by order of the sheriff; however, our consolidation center is open. This all started this past Saturday with crazy lighting strikes. Flames were 200 feet in the air, the situation is dangerous. Record breaking heat continues across the central coast as

strong high pressure centered over the Great Basin persists. AVOCADO -- Avocados aren’t just for guacamole anymore; foodservice operators are

using them on everything from burgers to smoothies to poke bowls. The number 2 avocadoes are very tight in terms of supply. Overall quality is good. ASPARAGUS --. It's a natural diuretic, so asparagus, which contains less than 5 grams of sugar per serving, can help relieve bloating and other unpleasant feelings. The green veggie's balance of amino acids and minerals may also help to alleviate hangover symptoms, now here is something worth the knowing. BROCOLLI -- Supplies and quality have both improved this week. BRUSSELL SPROUTS -- Balsamic dressing and lemon helps with stronger flavors from broccoli and Brussel sprouts. I also have been using it in an attempt, to lower my 12-year grandsons’ addiction to the white dressing. Total supplies are on the rise; this is a good time to promote Brussels Sprouts. Foodservice supply side look to be in strong volume and quality is good; some elongated seed core is still noted. CARROT -- Pro Mark Supplier, Grimmway Farms from drive-thru giveaways in the Midwest to hand-delivered donations in Kern County, Grimmway Farms has made it its mission to show support for individuals and families affected by COVID-19 by giving away its fresh carrots and Cal-Organic Farms vegetables. Since the middle of March, the company has donated more than 1 million pounds of fresh produce to food banks, hospitals and non-profit charities across the country. Sizing out of the Bakersfield area is still running on the smaller side causing prices on jumbos to be escalated and the cello category is similarly limited CAULIFLOWER -- Great sizing, quality, and color. We are expecting good supplies for the next 7 to 10 days. Retail cauliflower sales have slowed compared to early in the pandemic, though sales continue to post double-digit year-over-year growth. CELERY -- Business is good in Salinas, with average supplies available in the industry. Demand is good; the market is slightly lower this week. CILANTRO -- Bunched Cilantro supplies are expected to be plentiful this week. Now is a good opportunity to promote product. GREEN BEANS -- We continue to see this market ease back as new fields are being harvested out of Virginia. We are still seeing some residual market increases based on demand but expect this market to improve daily. Overall quality is fair and prices for hand-picked beans in the west very active

GREEN ONIONS -- Plenty of supplies to go around. And the quality is good. KALE -- has had its moment in the sun (and then some) but as far as healthy veggies go, it's certainly worthy of praise. The cruciferous green (which is even available in McDonald's these days) is loaded with health-boosting nutrients like vitamin A, phosphorus, and B vitamins like folate, and it boasts twice the vitamin C as spinach, another nutritional superstar. And since the veggie is as versatile as they come, feel free to add some kale to an array of meals ranging from egg dishes to tacos, and drinks such as juices and smoothies. On the market side of things, the market is flat, with little demand, do not see much changing for next week. LETTUCE -- Fair supply. The industry will be faced with potential burn related quality challenges in the upcoming weeks from the extreme heat, and as a result we could experience crop loss. Our QA team will be intensively focused on providing the best quality possible by managing harvest times and allocating the best lots available across all commodities. LEAF LETTUCE -- Alert On bulk Romaine, as well as leaf, you may well some ash in there from all the recent fire activity. Our field crews are true hero’s, they are giving the

product a little extra shake before trimming and boxing. Good quality and color on Romaine. Industry to expect internal and tip burn from recent heat and expected warm weather. We continue to heavily monitor at both field and plant level and work through best lots available. We will continue to keep you updated. Leaf production volumes are close to budget for the week. Overall quality and supply are good however we are seeing increased occurrences of sun scald, dehydration, and wind/fringe burn. This will begin to reduce yield and efficiencies during packing. Markets are forecasted to increase.

This may not be the best photo, but just to show the effect that heat can have on leaf lettuce.

ONIONS – As The new Northwest season is up and going. We are doing yellows right now, and red and whites will start next week. Demand is good, and the market is pretty steady right now. Quality is good, and size is average and slightly above, trending jumbos and colossal.

PARSLEY -- Bunched Parsley supplies are expected to be plentiful again this week. Now is a good opportunity for promotion.

PEPPERS/CUCUMBERS/RADISH/SQUASH -- Peppers: Green bell production is picking up in California with great quality. We will be peaking on Jumbo, XL, and Large sizing this week. Red and gold bell volume to decrease out of Bakersfield, while Fresno and Gilroy production should increase. Quality on both red and gold has been very good from the Fresno area.

Cucumbers: Consumer demand for cucumbers remains high as evidenced by the significant volume growth this year compared to prior years. F.O.B. prices tend to be fairly volatile, from Michigan in July. Both the Michigan growing region for the Eastern U.S. and the Baja California, Mexico, area for the Western U.S. are seeing some supply slowdowns, which could tip the market upwards for the next few weeks.

Squash: Alert Soft squash supply in the east will be lighter this week due to rain and wind damage from Tropical Storm Isaias. Quality and volume will improve in the west this week. FOB prices are higher this week POTATOES -- 2020 potato acreage is down from last year. Acreage overall in Idaho is down more than 11,000 acres. I think most people anticipate the yield to be roughly the same as last year. The significant drop in acreage is no surprise given the effect of COVID-19 on the restaurant and foodservice industry - particularly on French Fry demand. There’s uncertainty in the fresh market as far as when the foodservice sector will be able to rebound to where it was prior to the lockdown. The processors, but specifically the French Fry companies, cut their contracts down significantly anticipating lower sales. Normally, a lot of those acres would be planted anyways, and growers would take a chance on processors coming back and buying them, or those potatoes making their way to a fresh market. But this year is unique and the uncertainty over whether there would be a market this year led a lot of growers not to plant. On the retail side of the business, demand for potatoes has been strong. It’s stayed much stronger than we’ve ever seen. But obviously not where it was in the foodservice sector. The USDA Box program has helped quite a bit. But we’re waiting for states to open up and

restaurant occupancies to return to normal. RADISH -- The market has leveled off some, but still is higher than average for this time of year. SPINACH – Popeye’s favorite vegetable, turns out is a good one …

Calorically, spinach is 50% protein. Popeye's favorite veggie is a great source of not only protein, but also vitamins A and C, antioxidants and heart-healthy folate. One cup of the green superfood has nearly as much protein as a hard-boiled egg—for half the calories. Looking to get the biggest nutritional bang for your buck? Be sure to steam your spinach instead of eating it raw. This cooking method helps retain vitamins and makes it easier for the body to absorb the green's calcium content. Add a handful to soups, protein shakes, omelets, pasta dishes, and veggie stir-fries, or simply steam it and top with pepper, garlic, olive oil and a squeeze of lemon. Overall good quality. Slight light texture from rapid growth and heat, we will closely monitor shelf life. SPRING MIX -- Great quality and color. We will closely monitor shelf life from warm weather patterns.

TOMATOES -- CHERRY: The cherry market is steady and stable. Demand is picking up a little with schools starting, but there is plenty of production right now to keep the market in check. Cherries are coming out of Canada, Michigan, Virginia/Maryland, Alabama, and Mexico. GRAPE: The grape tomato market is low right now. There is heavy production but not enough demand. Grapes are coming out of New York, New Jersey, Alabama, Michigan, Virginia/Maryland, Canada, Mexico

and Baja, Mexico. ROUNDS: The round tomato market is down slightly from last week. Hot weather in the West has caused production to ramp up. Virginia growing areas are gapping right now, however, this isn’t a problem due to the excess from the West. Michigan and Tennessee are in full swing, as well. Most schools and universities are back in session now, so we expect the demand to pick up slightly over the next few weeks. However, if outbreaks start occurring, this may slow demand up again. For now, quality is good from all growing areas. We will see how the high heat in the West affects the quality in the next 7-10 days. ROMAS: Production is in full swing in these locations: Virginia/Maryland, Alabama, Tennessee, Michigan, California, Mexico, Baja-Mexico, and Canada. Markets are regional, but overall prices are low. Quality varies depending on grower and region. We are going to see a flush on central California Roma’s, as they are getting a lot of heat which will bring the

staggered plantings closer together. This should cause a gap a few weeks down the road.

APPLES / PEARS: With School starting, the 100 / 2 oz Apples are back in stock. The market will inch up through the summer; Washington storage stocks are adequate, but will continue to diminish until new crop production starts in the fall BLUEBERRIES -- Blueberries rebounded from early summer weather trouble, and now

supplies are plentiful, with the Pacific Northwest as the main growing region. Prices have responded with a low, steady level perfect for retail promotions. CITRUS -- Most consumers think of citrus only as a snack. Remind your accounts citrus makes a tasty addition to salads and as flavoring for meat.

LEMONS: Quality has been great, and the fruit is nice. – we have good supplies on both grades and sizes. LIMES: Alert There are ample supplies now and supplies are steady, however despite that, the market is high. We’re in the time of year where it’s peak season with volume but it’s

also peaks with problems with the fruit. There are multiple issues. There’s persistent heat

hitting these trees for a few months now. The fruit will show up a little lighter and the shelf life is at its minimum too. A lot of fruit is changing rapidly and maturing rapidly. This means offsetting that large volume is a lot of shrinkage. The industry is losing about 25-30 percent of the fruit due to quality issues. ORANGES: The Valencia market is hot, and inventory is down. We are trying to harvest as many 88/113/138 for foodservice program orders, but even with that, we are still very short on large fruit GRAPES -- (Green) Market is steady and demand is good. Green varieties showing good quality and sugar levels. Promotable volumes through the month of August. (Red) Market is steady and demand is good. Quality has been consistent with promotable volume through August.

KIWI FRUIT -- Chilean kiwi continues to be available with good supplies. Prices steady, fruit is hard and well formed. All sizes available. Movement is good. MELONS -- offer a great opportunity for fresh-cut as many consumers simply don’t want

the hassle of cutting up the melon. Include fresh-cut on your display to entice time-strapped

shoppers to buy.

Cantaloupe / Honey Dew: Better supplies of both cantaloupe and honeydew this week as harvest is up and demand is down. Market has dropped slightly on both cantaloupes and honeydews and across all sizes. Quality however is still very good on both with a good, netted cantaloupe and very clean honeydew. Brix/ sugars on both cantaloupes and honeydews is also excellent. Watermelon: Get it while it’s hot! Supplies of seedless watermelon in the West have been

very good to excellent. Although there are “local” supplies available, we are filling PO’s

shipping across the US and Canada daily which speaks to the quality of our fruit. Seeded are available in limited supplies and Mini Seedless continue in a demand exceeds state. Let us know how we can help you with your watermelon needs! PINEAPPLE -- Many fruits and vegetables are seeing strong demand and healthy markets, but pineapples are one item that continues to suffer. The tropical fruit has not yet recovered. Overall volume remains less than half of a typical year, but price trends are not much out of the ordinary. Pineapples certainly are suffering from the weaker foodservice and institutional food markets. Early in the pandemic, supplies dropped to less than half of normal levels, which was attributed to shipping problems in addition to supply chain issues, including lower demand. STRAWBERRIES -- Alert Due to the extreme heat, we expect production to downtrend. As a result of the much warmer temperatures, fruit size is down across all varieties, and even with less fruit the quality and firmness are good.

Ron Orr Executive Director The Pro Mark Group [573] 680 - 1066 [email protected]

mailto:[email protected]

Market Watch . . . . . . .

Market Watch

Stratas Foods Market Watch Link

https://sway.office.com/PnLA4jWtHlgbtWSZ?ref=email

Stratas Foods Market Watch August 28, 2020

Soybean Oil Futures

•Coronavirus – Schools back in session in some form or fashion. Lockdowns seem to be behind us, but

what will Flu season bring?

•Fundamentals –Crop Progress, CFTC COT, Weekly Export data, NASS Crush

•Weather – Hurricanes in the Gulf spin out storms to major crop producing areas. Rain in the forecast

not always realized and will need to show up to make the upper end of yield estimates.

•Politics/Macro – Campaign rhetoric largely avoided agriculture topics in the RNC, but China is our

largest buyer so you just have to read between the lines. Forward buying from China is good, but will it

stay if there is another trade war flare up?

Click on the images below or use the arrows to enlarge.

Soybean Oil

Fundamental Updates

Pro Farmer National Corn and Soybean crop estimates

• Corn: 14.820 billion bu.; Average yield of 177.5 bu. per acre

- +/- 1% = 14.968 billion bu. to 14.672 billion bu.; 179.3 bu. to 175.7 bu. per acre

• Soybeans: 4.362 billion bu.; Average yield of 52.5 bu. per acre

- +/- 2% = 4.449 billion bu. to 4.275 billion bu.; 53.6 bu. to 51.5 bu. per acre

Crop Progress

• SB Setting Pod: 92% vs. 84% WA vs. 87% avg.

• SB Dropping leaves: 4% vs 4% avg.

• SB Condition: 3% decrease to 69% G/Ex vs. 72% WA 55% YA

Exports

• SBO Net sales of 1,300 MT for 2019/2020 resulting in increases primarily for Algeria (10,000 MT,

switched from unknown destinations), Morocco (8,000 MT, switched from unknown

destinations), and Canada (1,100 MT, including decreases of 100 MT), were offset by reductions

for unknown destinations (18,000 MT).

• SBO Exports of 37,000 MT were up noticeably from the previous week and from the prior 4-week

average. The destinations were primarily to South Korea (13,000 MT), Algeria (10,000 MT),

Morocco (8,000 MT), Venezuela (3,800 MT), and Canada (1,500 MT).

Flash Summary

•Big rally this week as the funds increased their buying from last week's increasing totals. Soybean rally

as well as it likely saw even more fund buying than oil.

•Soybean oil prices in South America did not rise as much as the US which could see some business

switch back to south of the Equator should nearby basis tighten.

•Soybean oil futures continued the fireworks show on Friday as the September/October spread traded to

49 points premium September, before selling back to 29 points at settlement. September futures are

eligible for delivery this evening.

•Biofuel economics remain negative as the soybean oil prices have risen faster than the energy markets.

Expected CBOT Range 32.00 – 34.00

Canola/Rapeseed Oil

Fundamental Updates

•Stats Canada reports that Canola acreage is down 0.8% to 20.8M Acres for 2020.

•Market expectations for Canadian canola harvest increasing from 20.2 MMT to 21.0MMT.

•European fields are net-drying and cool hurting production.

•Canadian canola crush is up 8% YoY and canola exports are up 4% YoY.

•Chinese rapeseed oil markets remain significant premium to soy and palm.

Flash Summary

•Canola markets continue to be extremely tight throughout the US as suppliers enter the last phases of

downtime.

•Continued rallies in oil share have helped margins increase giving forward pricing and availability a

potential ease.

•Canadian crop looks to be improving with good forecasted heat. This has caused futures spreads to

invert as farmers forward sell their harvest, but exporters are buying beans for immediate delivery.

Futures spreads have also inverted in Europe. This is a bullish signal.

•Export demand from Canada continues to see strong bids out of China into Q1.

Tropical Oils

•Aug 1-25 Exports

•ITS -16.17%

•Amspec -14.34%

Flash Summary

•Palm oil continues to lag soy higher as the market is priced too high to win additional export business.

•Export pace continues to slow as destinations have their palm needs covered.

•Production typically peaks in September for the calendar year, so decreased demand is not at the best

time.

•Indonesia continues to support increased bio-diesel programs internally but the economics do not

support this decision. How long can this position be sustained?

•Global veg oil prices are rallying and palm ended the week higher as well. It will not be able to break

until the others let it do so, but we expect palm to be the leader on any move lower.

The information above reflects the current opinion of Stratas Foods but does not represent a guarantee

of future market conditions. All final oil booking decisions should be made by the end customer and not Stratas Foods.

Weekly Livestock, Poultry & Grain Market Highlights

Nat'l Purchased Carc Wtd Avg Price - Barrows & Gilts ($/cwt) 38.65 2.6% -42.7%Pork Carcass Cutout FOB Plant ($/cwt) 74.64 3.2% -8.9%Segregated Early Weaned (SEW) Feeder Pigs ($/head) 14.75 5.6% -23.5%Iowa/So. Minn Avg Weight Barrows & Gilts (lbs) 279.3 -0.4% 0.8%Est. Hog Slaughter 2,618,000 2.3% 3.4%YTD Est. Hog Slaughter 82,288,000 N/A 1.2%Est. Pork Production (mil lbs) 551.8 2.2% 4.9%YTD Est. Pork Production (mil lbs) 17,676.7 N/A 2.1%

Live Wtd Avg Steer Price, 5 Area FOB ($/cwt) 106.59 1.5% -0.5%Dressed Wtd Avg Steer Price, 5 Area Del ($/cwt) 169.41 0.8% -3.4%Boxed Beef Cutout, Choice ($/cwt) 222.90 6.2% -7.1%Boxed Beef Cutout, Select ($/cwt) 205.72 4.8% -4.1%Boxed Beef, Choice/Select Spread ($/cwt) 17.18 3.60 -8.07By-Product Drop Value, Steer ($/cwt live) 7.72 1.7% -16.5%CME Feeder Cattle Index ($/cwt) 143.90 1.2% 2.9%Texas Avg Live Weight Slaughter Cattle (lbs) 1,347.0 -0.4% 1.9%Texas Percent Slaughter Heifers 44% 7.3% 4.8%Est. Cattle Slaughter 652,000 1.9% -0.8%YTD Est. Cattle Slaughter 20,337,000 N/A -5.0%Est. Beef Production (mil lbs) 542.9 2.0% 1.3%YTD Est. Beef Production (mil lbs) 16,810.9 N/A -2.3%

Slaughter Lamb, Comprehensive, Carc. Wtd Avg Price ($/cwt) N/A N/A N/ALamb Carcass Cutout ($/cwt) 357.54 -1.1% 5.2%Est. Sheep Slaughter 32,000 3.2% -15.8%YTD Est. Sheep Slaughter 1,218,000 N/A -7.4%Est. Lamb Production (mil lbs) 2.1 5.0% -16.0%YTD Est. Lamb Production (mil lbs) 81.4 N/A -8.4%Veal Carcass Wtd Avg Packer & Non-Packer Owned ($/cwt) 281.54 0.1% -8.4%

LSWLPGMrktHighlight

August 24, 2020

Current WeekChange From

Past WeekChange From

Past Year

Source: USDA AMS Livestock, Poultry & Grain Market News Portal

20.0030.0040.0050.0060.0070.0080.0090.00

100.00110.00120.00

J F M A M J J A S O N D

Weekly Barrow & Gilt Price and Weekly Pork Cutout vs. 5 Year Average ($ per cwt)

Hog Price Pork Cutout 5 Year Avg Hog Price

Hogs and Pork

Cattle and Beef

Lamb and Veal

310.00

320.00

330.00

340.00

350.00

360.00

370.00

380.00

390.00


Weekly Lamb Carcass Cutout vs 5 Year Average ($ per cwt)

2020 5-year

145.00170.00195.00220.00245.00270.00295.00320.00345.00370.00395.00420.00445.00470.00


Weekly Dressed Steer Price and Weekly Boxed Beef Choice Cutout vs. 5 Year Averages ($ per cwt)

Steer Price Boxed Beef Choice Cutout5 Year Avg Steer Price 5 Year Avg Choice Cutout

Weekly Livestock, Poultry & Grain Market Highlights

Central Illinois Avg Corn Price ($/bu) 3.1450 -3.8% -11.9%Central Illinois Avg Soybean Price ($/bu) 8.9100 -1.2% 9.2%Central Illinois 48% Soybean Meal, Rail ($/ton) 289.20 -0.6% -0.9%Hard Red Winter Wheat Truck to Kansas City ($/bu) 4.6575 4.6% 16.7%Dark Northern Spring Wheat, 14%, MN, Rail ($/bu) 6.2500 1.6% 6.2%Soft White Wheat Portland ($/bu) 5.2750 -1.7% -11.9%Sorghum, Kansas City, Truck ($/cwt) 6.2700 5.2% 4.7%

Nat'l Delivered Whole Body Price (cents/lb) 66.73 0.3% -15.9%Est. Young Chicken Slaughter - Current Week (000's) 168,061 0.6% N/AActual Slaughter of Young Chickens (000's) 168,110 1.6% -3.4%YTD Actual Slaughter of Young Chickens (000's) 5,405,965 N/A -0.1%Actual RTC Pounds of Young Chickens (000's) 804,911 2.0% -2.5%YTD RTC Pounds of Young Chickens (000's) 25,791,579 N/A 1.6%

Nat'l FOB Frozen 8-16 lb. Hens,Wtd Avg Prices, cents/lb 108.16 -2.3% 20.6%Actual Slaughter of Turkeys (000's) 4,241 -3.8% 2.7%YTD Actual Slaughter of Turkeys (000's) 131,303 N/A -0.8%Actual RTC Pounds of Turkeys (000's) 104,572 -3.4% -3.5%YTD RTC Pounds of Turkeys (000's) 3,420,197 N/A -1.8%

Combined Regional Large Eggs (cents/dozen) 71.63 2.9% -19.9%National Shell Egg Inventory (30 doz. Cases/000,s) 1358.4 -2.0% N/AShell Egg Demand Indicator (SEDI) -2.40 -0.66 -15.70Central States Breaking Stock Av. Price (cents/dozen) 47.00 67.9% 2.2%National Breaking Stock Inventory (30 doz. Cases/000's) 325.1 -4.9% N/AEggs Broken Under Federal Inspection (30 doz cases) 1,442,994 -2.6% -11.5%YTD Eggs Broken Under Federal Inspection (30 doz cases) 46,864,749 N/A -10.3%

LSWLPGMrktHighlightSource: USDA AMS Livestock, Poultry & Grain Market News Portal

August 24, 2020

Current WeekChange From

Past WeekChange From

Past YearGrain

Broilers

Turkeys

Eggs

45.00

55.00

65.00

75.00

85.00

95.00

105.00

115.00

125.00


Weekly National Broiler Whole Body Delivered Price (Cents /lb)

2020 2019 5-year

75.00

80.00

85.00

90.00

95.00

100.00

105.00

110.00

115.00


Weekly National Frozen Whole Body Hen Turkey FOB Price (cents/lb)

2020 2019 5-year

30.0060.0090.00

120.00150.00180.00210.00240.00270.00300.00330.00


Weekly Combined Regional Large Egg Price (Cents/Dozen)

2020 2019 5-year

Source: USDA AMS Agricultural Analytics Division Page 1 Any opinions expressed represent those of the authors for the limited purpose of this newsletter and do not represent the official position of the Department.

A monthly publication of the USDA AMS, Livestock and Poultry Program, Agricultural Analytics Division Volume 8-20 August 2020

EGGS

Production

Compared with May 2020, June table egg production fell 3 percent to 634 million dozen and egg-type hatching eggs fell 6 percent to 6.9 million dozen. Compared with the previous month's figure, June table-egg layers fell 1 percent to 316.3 million and egg-type hatching-egg layers rose 3.8 percent to 3.3 million. Year-over-year, table-egg layers fell 4 percent and egg-type hatching-egg layers fell 6 percent. Pullets added in June for all types of egg production were 27.6 million, up 7 percent monthly and 9 percent annually. Broiler hatching-egg layers rose 1 percent monthly and 3 percent year-on-year to 61.2 million. Broiler-type hatching egg production fell to 94.0 million dozen down 2 percent on both a monthly, but up 3 percent on a yearly basis.

Price

Compared to June, the July price for a dozen Large Grade A eggs in the New York wholesale market rose 3 percent to 86.8 cents per dozen, the National Index Price rose 20 percent to 45.7 cents per dozen, but the Central States Breaking Stock price fell 16 percent to 31.4 cents per dozen. Compared to the July 2019 price, the New York large egg price rose 32 percent, the National Index price rose 69 percent, and the Central States price rose 35 percent. International Trade U.S. table shell egg exports in June totaled 8.8 million dozen, up 2 percent from May 2020 but down 16 percent from June 2019. The export value was $6.0 million, down 6 percent monthly and 12 percent yearly. Hong Kong and Mexico imported 80 percent of U.S. egg exports by value in June, while Canadian imports remain down sharply. At 3.0 thousand metric tons, the volume of egg products exported was up 10 percent from May and 12 percent from June 2019. Egg product exports were valued at $11.0 million in June, down 2 percent from May 2020 and down 10 percent from June last year.

TURKEY

Production

The U.S. produced 500 million pounds of turkey on a ready-to-cook basis in June, up 17 percent monthly and 5 percent yearly. At 27.7 million, turkey eggs in incubators on the first of June were up 3 percent monthly but down 5 percent year-over-year. June poult placements were up 11 percent on a monthly basis and 4 percent on a year-over-year basis at 23.9 million.

Total turkey in cold storage rose 13 percent in June on a monthly basis but was down 12 percent yearly. Total stocks of whole frozen birds, hens, and toms were down 4, 19, and 11 percent, respectively, on an annual basis. Breast meat and leg meat stocks were down 20 and 6 percent year-over-year.

Price

The July price of whole fresh hens and toms moved up 1 percent monthly to $1.21 per lb. The July price of whole frozen hens and toms was $1.09 per lb., up 4 percent over June and 24 to 25 percent over the July 2019 level. For individual cuts, the fresh tom boneless, skinless breast price was $1.70 per lb., down 5 percent on a monthly basis and 18 percent year-to-year. Fresh tom drumstick meat fell 13 percent monthly to 59 cents per lb., 17 percent below its July 2019 level. The July fresh tom thigh price rose to $1.15 per lb., 1 percent monthly and 25 percent below its July 2019 level.

International Trade In June, the U.S. exported 17 thousand metric tons of turkey products with a value of $37.7 million. Compared to May 2020, volume fell 2 percent and value fell 1 percent. Compared with June 2019, volumes fell 28 percent and value fell 33 percent. Mexico remains the top U.S. export market with a 72 percent share of the exports in June 2020.


CHICKEN

Production

Production of young chicken in June 2020 rose 6 percent monthly and 7 percent yearly to 3.8 billion pounds. At 1,023 million, July broiler eggs set and placements were up 2 percent monthly but down 1 percent on a yearly basis. Chicks placed were 3 percent more than June 2020 and unchanged from July 2019 at 833 million. Total stocks of chicken in cold storage at the end of June were unchanged monthly at 854 million pounds, but up 2 percent from May 2019. Stocks of whole broilers were down 2 percent and up 8 percent from the year before. Bone-in thighs in cold storage were up 21 percent yearly and 14 percent monthly. Drumstick stocks were down 22 percent yearly and 2 percent monthly. Stocks of boneless, skinless breasts in freezers were up 20 percent yearly but down 2 percent monthly. Cold stored wings were down 14 percent yearly and 4 percent monthly. Leg quarters were up 22 percent yearly but down 10 percent monthly.

Price

Compared to May 2020, whole broiler prices were down 4 percent at 70 cents per lb., 20 percent below the June 2019 price. Boneless, skinless breast prices fell 7 percent monthly but rose 4 percent yearly to $1.14 per lb. Drumsticks lost 15 percent from its June 2020 level for an average of 39 cents per lb., 13 percent below its July 2019 level. Bone-in thighs fell 34 percent on a monthly basis to 44 cents lb., 46 percent lower than its July 2019 level. Wing prices rose 11 percent over June 2020 levels to $1.92 per lb., the same as the June 2019 price. Boneless, skinless thigh meat prices fell 14 percent to 90 cents per lb., down 29 percent yearly. Bulk leg quarter prices fell 11 percent to 28 cents per lb., 38 percent lower yearly.

International Trade

June exports of chicken and chicken products totaled 249 thousand metric tons valued at $220 million, a 3 percent increase in volume and 18 decrease in value from May 2020 and a 1 percent decrease in volume and a 20 percent decrease in value from last year. Mexico returned to the top spot of export destinations for U.S. chicken exports with 14 percent of exports followed by China, Canada, Taiwan, and Vietnam.

BEEF/VEAL

Production

June 2020 beef production totaled 2.37 billion pounds, 7 percent more than in 2019 and 27 percent higher than May 2020. Cattle slaughter was 2.88 million head, up 2 percent year-over-year and 26 percent higher monthly. The average live weight was up 52 pounds from last year and down 2 pounds from May at 1,365 pounds. Veal production in June 2020 was 5.6 million pounds, down 2 percent year-over-year, but 8 percent below May. Calf slaughter was 37,200 head, down 16 percent yearly but 15 percent above May slaughter. The average live calf weight was up 37 pounds yearly but 14 pounds lower monthly at 260 pounds. Total beef production for the year to date was 2 percent below last year, while veal production was down 10 percent. Total beef in cold storage at the end of June was up 6 percent compared with the end of June 2019, and up 3 percent from May. Stocks of boneless beef were up 2 percent on a monthly basis and up 7 percent yearly, while beef cuts were 17 percent higher month-over-month but 5 percent lower year-over-year. Veal stocks in freezers rose 19 percent relative to May and fell 18 percent yearly.

Price

Live cattle prices (FOB, steers and heifers) averaged $97 per cwt in July 2020 shedding $8, or 8 percent, from June 2020 and 14 percent from the July 2019 price. The monthly average beef cutout value continued to fall, losing $37 per cwt, for an average of $204 per cwt, 15 percent lower than June and 5 percent below last July. The 90 percent lean boneless beef monthly average price lost $36 per cwt, or 13 percent, on a monthly basis at $243 per cwt, but was 9 percent higher year-over-year. The July 50 percent lean trim average dropped $26 to $52 per cwt, 32 percent below June and down 39 percent from last year. The average price for hide-off veal carcasses lost $1 for a July average of $282 per cwt, down slightly on a month-to-month basis, and down 8 percent yearly.

International Trade

Compared to 2019, June 2020 beef and veal exports (including variety meats) were again 33 percent below last year at 79 thousand MT, while the export value was up 32 percent at $492 million. The export volume fell slightly, while the value was down 3 percent from May. For the first half of the year beef exports fell 9 percent from 2019, and the value of exports was down 10 percent. In June, Japan, South Korea, Canada, Hong Kong, and Taiwan were our largest export markets, with more than half exported to Japan and South Korea. Year-over-year beef import volumes for June rose 17 percent compared to last year for a total of 110 thousand MT and were 25 percent higher in value at $669 million. On a monthly basis volume jumped 15 percent and value rose 5 percent. For the year to date, 2020 beef imports were up 11 percent in value and 3 percent in volume. Canada, Mexico, Australia, New Zealand and Brazil imported the largest volumes of beef to the U.S. in June 2020, with more than half of both the volume and the value coming from Canada and Mexico.


PORK

Production

Pork production in June totaled 2.4 billion pounds, 28 percent higher monthly and up 13 percent yearly. The number of hogs slaughtered was 11.2 million head, up 30 percent from May and 12 percent more than June 2019. The average live weight was up 3 pounds from last year but 6 pounds below last month at 288 pounds. Total 2020 pork production to date is up 2 percent from this period in 2019. Total stocks of pork in cold storage at the end of June were down 1 percent from May and 25 percent from last year. Ham inventories rose 16 percent for the month-over-month volume but fell 26 percent year-over-year, with stocks of bone-in hams up 27 percent monthly but 20 percent lower yearly, and boneless hams up 9 percent monthly but down 30 percent from 2019. Belly inventories fell 8 percent monthly and 2 percent compared to last year. Total loin stocks gained 18 percent above May’s inventory and but lost 30 percent yearly, while pork rib stocks fell 17 percent monthly and 36 percent year-over-year. Pork trimmings in freezers were up 1 percent from May but down 8 percent from last year.

Price

The monthly average negotiated carcass price for barrows and gilts in July 2020 began to trend up, adding $4 per/cwt at $34 per cwt, 12 percent higher monthly but down 53 percent yearly. The pork cutout value softened slightly, down $2 in July, or 2 percent, for a monthly average of $67 per cwt, 11 percent below July 2019. The monthly average price for trimmed, bone-in hams, 23-27 pounds added $7 during July for an average of $42 per cwt, 20 percent higher monthly, but 36 percent below last year. Prices for picnic meat combos, cushion out, dropped another $22 to a monthly average of $85 per cwt, losing 21 percent monthly and 12 percent yearly. The 72 percent lean pork trimmings price dropped another $18 per cwt, or 19 percent of its June value, but remained 2 percent above the 2019 value, at $75 per cwt. Pork belly primal values held steady on a monthly basis at $97 per cwt, down 12 percent yearly.

International Trade

June 2020 pork exports (including variety meats) fell 2 percent from June 2019 to 203 thousand metric tons and lost 8 percent in value to $498 million. Compared to May, export volume was down 15 percent, and value was down 17 percent. Cumulative exports for 2020 so far remain up 25 percent in volume and up 31 percent in value. China, Japan, Canada, Mexico and South Korea were again our largest export markets, with China and Japan the largest export markets for value, but China and Mexico receiving the largest export volume. Compared to last year, June pork imports were 6 percent higher in volume at 35 thousand MT, and up 4 percent in value at $123 million. Import volume and value were both down 7 percent from May. For the year to date, the volume of pork imports was down 13 percent from 2019, with the value down 8 percent. Canada, Poland, Denmark, Mexico and Italy were the top importers of pork to the U.S. Nearly two-thirds of the volume and almost 60 percent of the value of all imported pork came from Canada.

LAMB

Production

June lamb and mutton production, at 12.5 million pounds, was 10 percent higher than June 2019 but down 1 percent from May. Sheep slaughter totaled 193,400 head, 1 percent lower than May, but up 10 percent from last year. The average live weight was 129 pounds, the same as last month and 1 pound below last year. January to June 2020 commercial lamb and mutton production was down 8 percent from 2019. Lamb stocks in cold storage were 16 percent above 2019 but 3 percent lower on a monthly basis.

Price

For the fourth consecutive month negotiated live slaughter lamb prices were not reported due to confidentiality. The average lamb cutout value held steady on a monthly basis to average $412 per cwt, 4 percent above last July. The monthly average price for leg of lamb, trotter-off (233A) dropped $71 for an average of $373 per cwt, down 16 percent monthly and 4 percent yearly. The average price for lamb shoulder (IMPS 207) in July gained $2 to $331 per cwt, up 1 percent from the month before and up 7 percent from July 2019. Trimmed 4x4 loins rose $14 to $562 per cwt, 3 percent higher than June and 6 percent above last year.

International Trade

The U.S. lamb export volume gained 140 percent in June relative to May, and jumped 411 percent yearly, with exports at 618 metric tons. The export sales value gained 66 percent monthly but lost 4 percent yearly at $0.89 million. For the first six months of 2020, lamb exports were 150 percent above the 2019 volume, but the value of exports was down 18 percent. Mexico, China and Bermuda were the top destinations for U.S. lamb and mutton, more than 90 percent of which was shipped to Mexico. Imports of lamb to the U.S. fell 33 percent in June compared to May at 6 thousand metric tons, while the value of imports lost 22 percent to $53 million. Year-over-year imports were down 24 percent in volume and down 29 percent in value. Total lamb imports for 2020 so far are up 16 percent in volume, but down 13 percent relative to 2019. Australia and New Zealand alone imported nearly all the lamb into the U.S. In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident


650

700

750

800

850

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thou

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2020 2019 2016-2018 avg

550

600

650

700

750


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Monthly Table Egg Production2020 2019 2016-2018 avg

40.0

70.0

100.0

130.0

160.0

190.0

220.0


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Monthly 50% Beef Trimmings Price 2020 2019 2016-2018 avg

90

120

150

180

210

240

270

300


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Monthly Pork Bnls CC Loin Strap-On Price2020 2019 2016-2018 avg

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Market Update — August 24th

, 2020

Michael Greenberg

312.202.0002

@ResinGuru

bringing the market to you

Copyright © 2020 The Plastics Exchange, LLC | Patent Protected | All Rights Reserved.

Resin for Sale 12,509,228 lbs

Resin Total lbs Low High Bid Offer

HDPE - Inj 2,267,680 $ 0.410 $ 0.475 $ 0.390 $ 0.430

LDPE - Inj

1,947,128 $ 0.510 $ 0.590 $ 0.520 $ 0.560

HDPE - Blow 1,840,392 $ 0.420 $ 0.490 $ 0.410 $ 0.450

LLDPE - Film 1,631,404 $ 0.420 $ 0.500 $ 0.400 $ 0.440

LLDPE - Inj 1,412,024 $ 0.490 $ 0.580 $ 0.460 $ 0.500

PP Homo - Inj 1,358,484 $ 0.480 $ 0.590 $ 0.510 $ 0.550

PP Copo - Inj 968,920 $ 0.438 $ 0.610 $ 0.530 $ 0.570

LDPE - Inj 628,644 $ 0.510 $ 0.560 0.485$ 0.525$

HMWPE - Film 454,552 $ 0.440 $ 0.490 $ 0.430 $ 0.470

TPE IndexSpot Range

HDPE Blow Molding

1 Year

PP Homopolymer

1 Year

The spot resin markets were busy and exciting, our trading desk maintained the super active pace that began the week before; demand was strong, completed volumes were high, and prices rose as supplies thinned. Monday started with producers issuing a new nickel increase for September Polyethylene contracts, lending support to the $.05/lb increase pending for August, which is now feeling likely to implement. In addition to the imminent August cost-push Polypropylene increase, which is honing in around $.04/lb, another major producer joined the $.03/lb hike for Sept PP contracts which is in addition to any change in monomer costs. The new nominations sent buyers to the spot market seeking to procure additional resin at still fairly good prices.

The action continued throughout the week, POs were large and as offers cleared, they were replaced with limited material $.01-.02/lb higher. International resin buyers probed the market for well-priced resin, but with short supply and strong domestic demand, nary an excess prime pellet could be found on the cheap. On Friday, there was an ominous hurricane warning as two major storms, Marco and Laura, were developing in the Gulf of Mexico and could impact the petrochemical producing area in the coming week, such a simultaneous hurricane hit would be unprecedented in the region. Consequently, another wave of resin buying ensued, most suppliers reacted by raising prices or outright pulling their offers to wait and see what would transpire in the days ahead.

The major energy markets experienced slightly increased volatility this past week, net prices were again mildly mixed, seemingly unfazed by the dual storms entering the Gulf. WTI Crude Oil did a whole lot of nothing, it bopped around in less than a $2/bbl range and the Oct futures contract settled up a tiny $.03/bbl. Brent Oil established its larger $4/bbl range by Tuesday and ultimately shed $.45/bbl to $44.35/bbl. Nat Gas Futures continued to rally, nearly reaching $2.50/mmBtu. The Sept contract finished Friday at $2.448/mmBtu, a nice $.092/mmBtu gain. Ethane added $.014/gal to $.258/gal ($.109/lb). Propane was up $.01/gal to $.508/gal ($.144/lb).

Monomer trading activity was uninspired, prices were mixed and visibly transacted volumes were average at best. Ethylene was quiet through Tuesday morning when material in Louisiana changed hands at $.155/lb fulfilled over the next few months. A geographic swap was seen done on Thursday with Sept Ethylene in the Houston area carrying a $.025/lb premium over material in Choctaw. The market was then bid higher and by Friday afternoon, with storm ideas circulating, spot Aug Ethylene added $.02/lb to settle at $.20/lb; the forward curve moved in lock step and remained in backwardation. Propylene opened Monday with good interest and a deal for Sept PGP was quickly inked at $.355/lb. A few bids / offers splashed the market midweek but PGP remained otherwise quiet. Thursday afternoon saw a Sep-Oct PGP deal done at $.3475/lb and though interest resurfaced Friday, apparently neither side felt compelled to act. By week’s end, spot August PGP suffered a fractional loss to $.35/lb. Our expectation for August contracts sits somewhere in the range of a $.03 -.05/lb increase, July’s contract price was $.325/lb.

Spot Polyethylene continued to transact at a rapid rate and prices moved up $.01-.02/lb as railcars were snatched up and reseller inventories dwindled. The enthusiastic trade was spurred along by bullish factors, including a new $.05/lb price increase announced for Sept and the threat that a pair of developing hurricanes in the Gulf could further disrupt an already tightly supplied resin market. Together these two points should help solidify the August nickel increase, and if so, $.14/lb will have been implemented June-Aug. Though weary from the increases, processor demand was robust and our completed volumes were considerably above average for the second straight week. We have been bullish for months and our sentiment remains. Hurricane Marco and Laura are both dangerously close to Gulf Coast petrochemical complexes and such storms have proven to be unpredictable, we have yet to hear of any precautionary shut downs but should either cause any long term production issues, we can expect the 4th increase to also implement and spot prices to soar.

Polypropylene trading was very strong, marking its 6th straight vibrant week, now this is a new normal that we can get used to! Demand from both processors and resellers was heavy, supply tightened further with some grades becoming outright scarce due to continued monomer and resin production disruptions. PGP prices ended the week flat with a nervously bullish undertone as participants eyed the developing storms that could potentially disrupt more monomer and resin plants. With real hurricane worries entering the equation, buyers scooped up PP material to maintain continuity of supply, sending spot resin prices up another $.03/lb. Demand for high flow HoPP & CoPP material is always in fashion, but this week low flow HoPP also joined the action. August PGP contracts should settle up $.03-.05/lb, and every bit of the increase will pass through downstream to resin buyers. Producers are also seeking an additional $.03/lb to help restore previously eroded margins, some targeting the enhancement in Aug, others in Sept. We remain bullish the market from this level, well aware that a new world-class Polypropylene plant will eventually bring new supply to the market later this year. In the meantime, producer inventories remain tight and plants are still in turnaround or force majeure.

Remembering past hurricane devastation, our best wishes for the industry and the safety of those in harm’s way. Please note that logistics out of the region have already been a challenge, so plan accordingly and contact us should any resin needs arise.

LDPE - Film

08/28/2020

Dairy Market

BLOCK: Down .0375 @ $ 1.8275 3 SalesBARRELS: Down .0100 @ $ 1.4300 6 SalesBUTTER: Down .0200 @ $ 1.4475 5 SalesNFDM Grade A: Up .0050 @ $ 1.0200 6 SalesCME Dry Whey Up .0050 @ $ .3400 2 Sales

Date Blocks Block Change Block Sales Barrels Barrel Change Barrel Sale Spread

08/24/2020 1.7300 Up .0800 0 1.3600 Up .0300 5 0.3700

08/25/2020 1.8300 Up .1000 0 1.4050 Up .0450 5 0.4250

08/26/2020 1.8725 Up .0425 3 1.4375 Up .0325 4 0.4350

08/27/2020 1.8650 Down .0075 6 1.4400 Up .0025 9 0.4250

08/28/2020 1.8275 Down .0375 3 1.4300 Down .0100 6 0.3975

Average Market: 1.8250 12 1.4145 29

Date Butter Butter Change Butter Sales Grd A Grd A Change Grd A Sales

08/24/2020 1.5150 Unchanged 9 0.9950 Down .0025 2

08/25/2020 1.5200 Up .0050 4 1.0125 Up .0175 2

08/26/2020 1.5000 Down .0200 8 1.0200 Up .0075 5

08/27/2020 1.4675 Down .0325 17 1.0150 Down .0050 3

08/28/2020 1.4475 Down .0200 5 1.0200 Up .0050 6

Average Market: 1.4900 43 1.0125 18

Date Dry Whey Dry Whey Change Dry Whey Sales

08/24/2020 0.3300 Down .0050 2

08/25/2020 0.3250 Down .0050 1

08/26/2020 0.3300 Up .0050 5

08/27/2020 0.3350 Up .0050 3

08/28/2020 0.3400 Up .0050 2

Average Market: 0.3320 13

--Year Ago--

Date Blocks Barrels Butter NFDM Grade A Dry Whey

08/26/2019 1.8800 1.6650 2.1975 1.0400 0.3950

08/27/2019 1.8775 1.6800 2.2100 1.0475 0.3950

08/28/2019 1.8800 1.6800 2.2100 1.0375 0.3900

08/29/2019 1.9200 1.7000 2.1850 1.0425 0.3900

08/30/2019 1.9300 1.7375 2.1900 1.0400 0.3900

Clemens Food Group

Pork Market Commentary

Average Saturday harvest levels through the second quarter saw a 19% increase over 2019, with third quarter

expectations, now half know, at more than 50% over 2019. Packers could not have achieved meaningful harvest

levels through the course of this summer, and consequently drawn down the backlog of hogs, without including

strong Saturday harvest levels. When margins warrant, packers will work strong Saturdays. Saturday harvest

levels represented new records, for both average Saturday through the summer as well as percent of total harvest

achieved. Saturdays usually increase as margins increase, with that scenario expected to trend higher through the

fourth quarter as well. While packer margins are a calculated value, the trend for profitability improves during

the fourth quarter, in part due to the large number of animals available on a seasonal basis. Packer margins

improved through second quarter over 2019 by more than 1000%, due to May's anomaly, with third-quarter

improvement likely bumping up against 200%. This strength will fade as the industry gets through the backlog of

hogs.

Hams: Ham prices made another move higher last week, though not as strong as the week prior. The average

price will show a strong move upward, but the daily gains cooled off as the week progressed. While hams are

price risk upward for the next two months, the next two weeks will present alternative workforce distribution to

accomplish everything needed for the Labor Day holiday. This will keep buying action away from hams, focused

on other things going into the close of the month. Do not look for much in the way of gains over the next two

weeks as harvest levels will be strong, and hams will need to be cleaned up on occasion. The abbreviated holiday

harvest the week of Labor Day will tighten ham availability, and processing will begin to ramp up again, putting

gains back on hams after the first full week of September.

Bellies: Bellies found some additional pull last week on secondary processing getting ahead for the holiday. Bellies,

being a secondary processed item, require a longer lead time to get product accomplished, with a strong pull not

expected going into the close of the month when product can no longer make it in time for the holiday

weekend. This puts weakness in the forecast as early as this week, and then further into the first week of September,

since Labor Day is late this year. Bellies could lose $10 in the next two or three weeks, but are expected to slowly put

that back on coming out of the holiday. The short harvest week post-holiday will tighten availability, and product pull

for secondary product the remainder of September and October will put support and lift in the market.

Butts: Butts moved higher last week, a little stronger than anticipated and moving up as buyers chase fresh product

ahead of Labor Day preparations. The price risk over the next two weeks is expected to see choppy strength and

support on the final buying for the holiday, but will fade as the month expires. Butts are not forecast to retrace

significantly, but softness certainly is expected at the turn of the month as buying pressure will ease. Couple that

with a fresh supply of animals that is not expected to fall away, and the upward price momentum will not be

persistent for the next 30 to 60 days. Butts quickly achieved a price in the $80s, but will probably not reach $90,

which will maintain an average discount below last year.

Ribs: Spares put lift on the board during last week, on pace with expectations. The demand pull now is significantly

skewed to the fresh market, and even though harvest levels are consistently strong, there still are about 10 more

days of demand risk that could keep spares above $140 in preparations for the Labor Day holiday weekend. Prices

should start to ease the last week of August when product can no longer make it in time for the holiday, possibly

getting down to the low $120s by the end of September.

Trim: Lean trimmings, after coming down handily the prior two weeks, seasonally expected but choppy, stalled last

week as the pull for prepared product is planning for a strong Labor Day, which is being prepared for retail as well as

food service. The strong harvest levels achieved last week kept away increases with the expectations that supply will

be able to keep up with the pull on product for the next 10 days or so. Look for easing this week as well as the week

heading into Labor Day as secondary processing has to take place sooner rather than later because of the

manufacturing and distribution chain. The current premium over last year, averaging 12%, may persist for a few

weeks, but price will likely ease into the mid-$60s.

To: Producers Rice Mill Customers From: Gary Reifeiss, Producers Rice Mill, Inc.

Last week, our August crop report outlined two factors that could impact US new crop rice prices. We want to provide an update on each: First, we reported that Brazil has been exporting at three times last year’s volume, a pace that cannot be sustained. New pricing reported from Brazil indicated the impact of this export velocity. Brazil’s new pricing has increased $40/MT, or almost $2.00/CWT. Secondly, we pointed out the possible threat of hurricanes affecting the rice growing areas. As two approach the gulf coast, the first (Marco) is not expected to land with much impact. The second (Laura) is, however, forecasted to bring rain and high winds to the southern rice belt at very unfortunate timing. With harvest only 60% complete in Louisiana and Mississippi, and just beginning in Arkansas and Missouri, heavy rains can saturate rice stalks adding weight, and strong winds can then blow the rice to the ground. The combined rain and wind can potentially result in substantial loss of field yields. We see the CBOT reacting to this development with increases in futures prices:

UPDATE: August 2020 MARKET REPORT

11.95

11.97

12.19

12.14

12.32

12.27

12.49

11.5

12

12.5

13

May-20 Jun-20 Jul-20 Aug-20

September '20 Futures

The path of hurricane Laura’s rain and residual winds is expected to move directly over the rice belt of Louisiana, western Mississippi, Arkansas and up to Missouri. Up to 2-inches of rainfall is expected with winds from 20-30mph in Arkansas and 50-70mph in parts of Louisiana.

Brazil’s milled white rice pricing up almost $2/cwt to $580/MT, bulk FOB mill.

is hard, but it’s also healthy for any business. At Lakeside, we’re fortunate to have partners that understand this and are willing to work together as we navigate the unknown.I’m confident this increased collaboration will result in long-term success and further strengthen our business relationships. I look forward to the future and continuing to do our part to feed America!

Reagan RussellVice President – Food Service Sales

Executive UpdateAs we continue the 2020 pack, I’m optimistic Mother Nature is cooperating and we’ll have a much needed “pipeline fill” of products to service our customers. The past few months have been unprecedented for the food service industry, with numerous challenges due to COVID-19. If any-thing, these challenges have highlighted the importance of communication between Lakeside and our valued partners.

Innovation and “thinking outside the box” have resulted in new opportunities and channels we’ve not traditionally explored. I’m encouraged that as we continue to adapt, there will be more outlets for products and revenue than before. Change

In this Issuel Executive Updatel NEWS from Lakesidel Did you know?l Seen Around Lakesidel SER!OUS BEAN CO update

Crop Report August 2020

Quote of the Month:

“If everyone is moving forward together, then

success takes care of itself.”

– Henry Ford Sweet corn harvest began on July 29.

NEWS from Lakeside

Report #004 Page 2 of 5

Field UpdateCrop Planting Harvest Outlook

Peas Planting complete Harvest complete Achieved budget pack for canned and frozen.

Beans Planting complete 7/24 Underway Currently projecting slightly less than budget pack.

Corn Planting complete Began 7/29 in Central WI and Iowa.

Currently projecting budget pack.

Lima Beans Planting complete Harvest began August 15. Projecting less than budget pack.

Beets Planting complete Early crop harvest underway. WI crop ETA 10/1.

Projecting budget pack.

Carrots Planting complete ETA: Early October Projecting budget pack.

Potatoes Planting complete ETA: October Currently on schedule and in good condition.

Broccoli Year-round depending on sourcing location

Year-round depending on sourcing location

Supply is good from Guatemala and Mexico; contracting for next year begins soon.

Cauliflower Sept-Oct Jan-March, Nov-Dec Sourcing location varies.

Spinach Jan-Feb, July-Sept March, May, Oct-Nov Sourcing location varies.

Dry Beans March-June Year-round Sourcing location varies.

We experienced above-normal temperatures the entire month of July, which created a challenge for pea harvest. We’ve also seen above normal temperatures throughout much of August. The September outlook calls for near-normal temperatures in the Upper Midwest.

Weather Report

Green beans were first cultivated in Central and South America. Early varieties consisted of spindly pods with tough fibers. Times have changed, and after centuries of genetic refinement, green beans are now string-less, tender and hold small seeds within their pods. They’re also one of the most popu-lar vegetables today!

Green beans are a warm season crop, with little tolerance to cold, yet too much heat negatively affects tenderness, flavor and yield. Wisconsin is the leading producer of green and wax snap beans for processing. Other important producing areas are the Pacific Northwest and Northeast. Beans are a 60-day crop, with the first planting beginning in early May and harvest historically starting around July 8 and finishing around Sept. 20.

Packing StylesHow beans are cut and separated by size deter-mines various packing styles. Whole beans are usually only smaller sieve sizes (2 or 3). French style, also called French sliced, julienne or shoe-string, are larger sieve beans (usually 5) sliced lengthwise. Cut beans are the most popular style and are cut crosswise or diagonally in lengths of

Did you know?


1-1/2” for canned and 1” for frozen. Mixed & short-cut beans means 25 to 50 percent of the beans measure less than ¾” in length.

At Lakeside, we take great pride in producing the highest quality green, wax and Italian beans. We control the entire field operation, from seed and planting to harvesting and processing into canned frozen products. Our stringent quality assurance grading standards assure that customers always receive the very best nutritious beans possible ̶̶- defect-free, uniform, firm, with excellent color and, most importantly, taste.

The most commonly used blancher is the rotary (or reel) blancher, consisting of a perforated reel revolving in a cylindrical shell containing water heated with steam. A spiral fin moves the raw prod-uct forward as the cylinder revolves, with the speed determining the blanch time. An alternative style is a pipe blancher, consisting of a long pipe that raw product is pumped through, with the pipe length determining the blanch time. The water tempera-ture used in both types ranges between 165-205 degrees F. Blanch time varies depending on the vegetable, with Lakeside’s green beans blanch-ing for 2 ½-3 minutes, depending on the style of blancher and the cooker/freezer tunnel being used.

Before canning or freezing, vegetables are placed in a hot water bath to stop enzyme action, which can cause a loss of flavor, color and texture. It also expels occluded gases, which ensures a better vacuum in canning.

Green Beans: A Favorite Summer Vegetable

What’s Blanching?

Seen Around Lakeside


Green bean harvesting is in full swing! Here are photos taken in central Wisconsin in mid-July.

Expansion of the production facility at Riverside Foods, our frozen appetizer company, is nearly complete. The project will double production capacity for our popular cheese curds, breaded appetizers and seafood.

SER!OUS BEAN CO Update


SER!OUS Bean Co has been driving retail sales with a social media campaign and rebate program throughout peak bean season, with concentrated promotion over Memorial Day, July 4th and Labor Day. The campaign highlights the many unique fla-vors that can liven up any meal or grilling occasion, and we’re seeing good results in target markets.

Over 13 weeks covering the peak of the pandemic shopping period (March 15-June 14), the canned vegetable category grew 50 percent in dollar sales vs. the previous year. While private label lost some share to brands in terms of dollar sales, private label outpaced brands in unit growth. During the same 13-week period, the

Market Updatefrozen vegetable category grew 29.3 percent in dollar sales over the previous year, with private label outpacing brands in both dollar and unit growth. Peas and mixed vegetables showed the largest increase on the canned side, while all segments grew at a similar place on the frozen side, except side dishes.

The brand is also introducing three of its flavors into the food service channel in August. The team believes they can be more than just a side dish and offer chefs innovative new dishes on any menu. Available flavors will include: Sweet & Sassy Dr Pepper Baked Beans, Sweet & Smoky Chipotle Pinto Beans and Buckin’ Buffalo Beans.

I picked up Buckin Buffalo Beans at Aldi and I was pleasantly surprised on how good they were. I took them to a party and everyone loved them. I hope Aldi will keep them in stock but I am also happy to see I can get them directly from the Serious Bean Co.

Matt Ringle, seriousbeanco.com

I tried your Dr Pepper beans a week and a half ago. Hence this order. Since then I tried your Chipotle, and the jalapeño bacon flavored. My God they are completely AWESOME! If my Market does not stock them perma-nently, I will have many future online orders.

Billy Surprise, seriousbeanco.com

Fans are eating up our SER!OUS BEAN CO flavors…

Omg i bought some of your beans today and they are the bomb so delicious and good and i will try all flavors so if you ever want to send out some sam-ples ill gladly take and eat em up they are soooo good. Scott Barry, Facebook

Tried a can of Jalapeno bacon and the Dr Pepper in a recipe for baked beans I use instead of pork n beans and ranch style beans the recipe calls for. Way better than before. New secret ingredient.

Oval Hankins, Facebook

All of the beans are delicious and unique. Best canned beans I’ve ever tasted! Not one needs to be “doctored”. Dana Wallace, Facebook

MarketNews Report · 2020. 10. 12. · 9% (from $1.41 to $1.53 per dozen) and is firm headed into...

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Transcript of MarketNews Report · 2020. 10. 12. · 9% (from $1.41 to $1.53 per dozen) and is firm headed into...