Week Ending June 19, 2020

**Graphs represent data for the week ending June 12, 2020**

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DIESEL

BEEF Market is unsettled. Total beef production for last week was up 1.1% versus prior week and was up 2.1%% compared to same time last year. Total headcount for last week was 658,000 as compared to 669,000 for the same week last year. Live weights for last week were down 1 lb from prior week and were up 61 lbs versus same time last year. Production has continued to improve over the last several days, but overall availability remains mixed between suppliers/plants. Labor availability related to COVID-19 has been an ongoing concern but is improving from just a few weeks ago. Measures put in place in plants have helped improve employee safety but has slowed availability of some items due to changes in line times and reduction of additional trimming at some plants. Large weights mean overall higher weight outputs, but lower headcount means reduced availability of certain

sizes, grade, item availability. The drop in the market over the past few days has improved buying activity and helping to move additional inventories. Grinds- Market is weaker. Inventories are improving and helping to push pricing lower from the extremes seen just a few weeks ago. The market has seen large drops in prices over the past few weeks. Demand has been improving this week with the lower price points.

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Diesel Fuel $/Gallon

2017 2018 2019 2020

▼ GRINDS -▼LOINS ▼ ROUNDS ▼ CHUCKS U RIBS

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Loins- Market is steady to weaker. Buying demand has been good but the increases in production have helped to put downward pressure on multiple cuts as we moved thru this week. Demand is expected to be good leading up to the 4th of July. Rounds- Market is weaker. Improving production combined with changes in buying patterns is putting downward pressure on the market. Chucks- Market is weaker. Light demand at retail combined with improving production is putting pressure on the market. Ribs- Market is unsettled. Demand has been good and expected to keep pressure on the market as we move closer to the 4th of July. The improving production has resulted in more mixed availability between packers.

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Ground BeefAvg weekly $/lb

2017 2018 2019 2020

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Choice Ribeye HeavyAvg weekly $/lb

2017 2018 2019 2020

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PORK Market is mixed. Total pork production for last week was up 0.4% versus prior week and was up 3.2% compared to same time last year. Total headcount for last week was 2,457,000 as compared to 2,439,000 for the same week last year. Live weights were even with prior week and up 9 lbs from same time last year. Labor availability related to COVID-19 has been an ongoing concern and causing many of the plants to have to run at reduced speeds. The limited production has caused cuts and allocations to be commonplace over the past several weeks. Foodservice demand has been slowly improving as additional states ease restrictions on their shelter in place orders. Pricing has moved dramatically higher and lower over the past few weeks due to the large swings in demand and production.

Choice Brisket Avg weekly $/lb

2017 2018 2019 2020

Choice InsideAvg weekly $/lb

2017 2018 2019 2020

▼BELLIES UHAMS ▼LOINS U BUTTS U RIBS

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Bellies- Market is weaker. Improving production continues to put pressure on the market. Hams- Market is unsettled. Like other cuts, Hams saw a sharp drop followed by a large increase only to drop lower again. Seasonal demand for deli items combined with good export demand is helping to put pressure back on the market again. Loins- Market is weaker. The market has seen sharp drops over the past few days as production has been outpacing demand. Butts- Market is unsettled. The market has moved lower after seeing extreme highs just a few weeks ago. Improving seasonal buying activity is keeping the market in a more unsettled tone. Ribs- Market is unsettled. The market has seen sharp drops from just a few weeks ago that had seen pricing skyrocket to record seasonal highs. The recent drops have brought the market more back in line with prior year.

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20-23 Ham Market Weekly Average

$$/lb

2017 2018 2019 2020

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Pork Butt 1/4 Trim Bone-In USDA Weekly

Average FOB

2017 2018 2019 2020

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CHICKEN Market is steady to weaker. Total headcount for last week was 162,762,000 as compared to 168,844,000 for the same week last year. Average weights for last week were 6.42 lbs. as compared to 6.16 lbs. for the same week last year. With regards to chick placements, fryers for week ending 7/18/20 are estimated at 161.6 million. Placements for previous week were 159.7 million and same week last year was 168.4 million. Over the last month, domestic demand has been supported by steady retail demand and rising foodservice activity. At the current time, it appears that most channels are saturated and that demand levels are starting to weaken. Boneless breast and tenders continue to be sought after. Volume on wings, dark meat, and heavy WOG’s is starting to slow down. Export demand for leg quarters is reported as sluggish and the parts segment is starting to show signs of weakness. The supply side of

the industry continues to have more birds on a weekly basis and demand is not quite keeping up with the production side. WOGS- Market is steady to weaker. Demand for WOGS and 8pc cutups has peaked, supply is on the rise, and some excess is being reported on the larger sizes. Small sizes continue to move well and are supported by fast food QSR’s. Supply is long and market is being pressured. Tenders- Market is steady. As foodservice operations are allowed to reopen and expand sit down capacity, demand for tenderloins is strong and the market is well supported. Additional production has helped in meeting the demand on both select and jumbo sizes. Boneless Breast- Market is steady. Domestic demand remains steady and is keeping up with the increased production levels. Retail activity is the key driver and restaurant operations continue to become more vibrant. Supply is tight on small and medium sizes. Market is trending flat. Leg Quarters and Thighs- Market is steady to weaker. Export demand and retail demand for leg quarters has shown some weakness over the last week. Demand for drums, thighs, and dark meat continues to be slow and the market is experiencing downward pressure. Supply is available on back half parts. Wings- Market is steady to weaker. Demand for wings is starting to decrease a bit as we head into the summer months. Supply is readily available on all sizes and market is being pressured.

-▼ WOGS -- TENDERS -- BNLS BREAST

-▼ LEG QTR -▼WINGS

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TURKEY Market is steady to firmer. Total headcount for last week was 3,964,000 as compared to 4,273,000 for the same week last year. Average weights for last week were 32.15 lbs. as compared to 31.51 lbs. for the same week last year. The turkey category remains solid and well supported domestically and abroad. Domestic demand for whole birds and breast meat remains vibrant. Bulk parts like drums and wings continue to be well maintained as foodservice operations start to resume. Export needs for back half parts continue to be steady. Supply continues to be tight as the weekly number of birds being harvested remains slightly behind last year.

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Chicken Plant Grade, 2 1/2 lbs & upAvg Weekly $/lb

2017 2018 2019 2020

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Chicken Tenders Avg Weekly $/lb

2017 2018 2019 2020

▲WHOLE BIRDS -- BREAST MEAT

-▲WINGS -▲ DRUMS

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Whole Birds- Market is firm. Demand for whole birds, toms, and hens remains extremely strong. Processors have limited spot availability since production is being used to fulfill pre-booked holiday orders. Limited supply continues to be reported. Breast Meat- Market is steady. The need for fresh breast meat remains supported by further processors as they replenish inventories for retail deli, pre-sliced meats, and foodservice applications. Supply for fresh boneless remains limited while frozen breast meat is available. Wings- Market is steady to firmer. Summer demand for two joint wings and whole wings is being reported as fair. Market is being supported and supply remains in a moderate position. Drums- Market is steady to firmer. Domestic demand tends to improve, and this category is starting to get its seasonal lift. Export sales also remain stable for the time being. Supply is available, but moderate.

SEAFOOD Gulf Shrimp- Market is unsettled. Even though inventories are seasonally lighter, suppliers are trying to move out last year’s inventories as new season product becomes available. Black Tiger Shrimp- Market is mixed. Mid and smaller sized shrimp are seeing upward pressure on the market as buying

activity has been improving as we moved into this week. Large sizes are more unsettled and seeing some downward pressure as the foodservice demand is still very light on these sizes. White Shrimp- Market is firmer. Buying activity is improving and putting upward pressure on the market. Replacement inventories from overseas are getting more difficult to acquire as production has been lower than expected. Larger sized product is seeing a lighter demand than other sizes. King Crab- Market is steady to firmer. Buying activity has been improving and putting pressure on the market. Snow Crab- Market is firmer. Demand has become active over the past few weeks with demand at retail being very good. Warm Water Lobster Tails- Market is weaker. Demand has been well below expectations for several weeks helping to keep pressure on the market. New season product is expected to begin entering the market over the next few weeks. North American Lobster Tails- Market is unsettled. New season production has been lighter than expected due to plants running below capacity due to labor concerns. Fishing has been good, and this is helping inventories to build and pushing raw material costs lower.

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Salmon- Market is firmer. Retail demand has been very good for several weeks with Foodservice demand beginning to improve as additional states ease dining restrictions. Demand from China for product of Europe has become much lighter and is causing that market to become more unsettled as suppliers look for additional avenues to move their product. Cod- Market is steady. Flounder- Market is steady. Haddock- Market is steady to firmer. Improved demand is helping to put upward pressure on the market. Pollock- Market is unsettled. Larger sized product is in limited supply due to recent catches being more on smaller sized fish. Domestic Catfish- Market is unsettled. Retail demand has been very good the past several weeks and putting pressure on available inventories. Production has been lighter than expectations and keeping pressure on availability. Tilapia- Market is unsettled. Retail has seen a large increase in demand the past few weeks and helping to move additional inventories. Production costs overseas have been rising and keeping the market in an unsettled tone. Recent reports of high temps and low rainfall in China are putting additional pressure on this market. Swai- Market is steady. Scallops- Market is steady. Demand has been light and new season fishing is helping to build inventory levels. Fishing in Japan and China are in their off season and helping to hold those markets steady.

DAIRY Cheese Market is unsettled. The CME block market held steady this week while the barrel market moved both higher and lower. Across the country production schedules are full with demand stemming from retail, foodservice and USDA purchase programs. Supply on cheddar is tight. Northeast producers report tighter milk supply in the region. Inventory levels are being kept in balance with increased

demand. In the west, demand is being driven by USDA purchase programs and foodservice segment interest. Supply of block cheese in the region is tight.

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Butter Market is unsettled. The CME butter market moved both higher and lower this week. With declining supply of cream in most areas production across the country is seasonally lower. Demand in foodservice is rising. Eastern region producers have adjusted production to match incoming supply of cream. In the

central region foodservice demand has continued to rise although still less than average for this time of year. Producers are already looking towards building inventories ahead of the fall baking season. Western producers report retail demand is strong and above average for the season. Production is running at capacity to meet demands. Increased ice cream production has drawn down available cream in the region.

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Cheese Block MarketAverage Weekly $/lb

2017 2018 2019 2020

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Cheese Barrel MarketAverage Weekly $/lb

2017 2018 2019 2020

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EGGS Market is steady to weaker. Retail demand is being reported as weak and carton egg sales are at some of the lowest levels of the year. Regional promotional activity continues to improve, but overall sales are still subpar for this time of year. Foodservice volume continues to show improvement but is still reported as light. Fast food QSR’s continue to be bright spot for foodservice operations. Supply is available on both medium and large sizes. National weekly shell egg inventory reports shell egg inventory down 3.8% over last week.

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Butter MarketAvg Weekly $/lb

2017 2018 2019 2020

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Large Shell Eggs

$/Dozen

2017 2018 2019 2020

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SOY OIL Market is steady. The soy markets came up over the past few weeks, but the momentum is leveling off. The demand for exports has not been as strong as indicated.

WHEAT/FLOUR Market is steady. Weather continues to be favorable for wheat domestic and abroad. The potential of China purchasing US agricultural products will weigh on how this market moves.

Soybean Oil

2017 2018 2019 2020

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For questions regarding the markets, please contact the appropriate Category Manager:

Scott MacKaben, Senior Vice President of Procurement, ext. 5457

Beef, Pork, Seafood: Davy Ard, Director of Category Management, ext. 5431

Poultry, Eggs: Ken Kotecki, Category Manager, ext. 5463

Oil, Wheat, Grains, Canned Products, Imports: Willie Biddix, Category Manager, ext. 5433

Non-Foods, Spices, Dairy: Angie Rivera, Category Manager, ext. 5427

Beverages, Frozen Vegetables: Crystal Wilkins, Category Specialist, ext. 5451

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