Week Ending June 26, 2020

**Graphs represent data for the week ending June 19, 2020**

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DIESEL

BEEF Market is unsettled. Total beef production for last week was down 0.2% versus prior week but was up 1.5% compared to same time last year. Total headcount for last week was 656,000 as compared to 668,000 for the same week last year. Live weights for last week were down 3 lbs. from prior week but were up 49 lbs. versus same time last year. Production has continued to improve over the past 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. Retail buying activity has been improving as we moved through this week. Retail advertising is expected to be at higher levels as we move through the next week.

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

▼GRINDS ▼LOINS ▼ROUNDS ▼CHUCKS ▼RIBS

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weeks. Demand has been improving with the lower price points as well as buying activity for the 4th of July has been very good. Loins- Market is steady to weaker. Improving production and lighter buying activity is putting pressure on the market. Rounds- Market is weaker. Improving production combined with a change in buying patterns is putting downward pressure on the market. Chucks- Market is weaker. Seasonally lighter demand combined with improving production is putting pressure on the market. Ribs- Market is weaker. Demand has been good as we moved into this week but buying activity has become lighter as this week progressed. The improving production is putting additional pressure on the market.

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Choice Brisket Avg weekly $/lb

2017 2018 2019 2020

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PORK Market is mixed. Total pork production for last week was up 5.2% versus prior week and was up 8% compared to same time last year. Total headcount for last week was 2,587,000 as compared to 2,454,000 for the same week last year. Live weights were down 1 lb. from prior week but up 8 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.

Bellies- Market is mostly steady. Demand is seasonally improving but at a time that production is pulling ahead of same time last year. Hams- Market is mostly steady. Improving production is helping to build inventories. Loins- Market is steady. Butts- Market is unsettled. The market had moved lower after seeing extreme highs just a few weeks ago. Improving seasonal buying activity is keeping the market in a more unsettled tone and putting upward pressure on the market again.

-- BELLIES -- HAMS -- LOINS U BUTTS U RIBS

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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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CHICKEN Market is steady. Total headcount for last week was 161,890,000 as compared to 169,609,000 for the same week last year. Average weights for last week were 6.41 lbs. as compared to 6.27 lbs. for the same week last year. Regarding chick placements, fryers for week ending 7/25/20 are estimated at 164.0 million. Placements for previous week were 161.6 million and same week last year was 169.3 million. Domestic demand continues to improve as local economies begin different phases of re-opening. Retail demand continues to be adequate and foodservice volume continues to show a steady increase in foot traffic. Boneless breast, tenders, and wings continue to be the beneficiary of more and more restaurant re-openings. Export demand for leg quarters continues to be reported as subpar. Supply and production are less than normal for this time of year, but the industry continues to increase the number of

bird placements on a weekly basis. WOGS- Market is steady. Demand for sized WOGS and 8pc cutups continues to be steady and well supported by retail deli and fast foods QSRs. Small sizes continue to be the most sought after, but heavy WOG’s are being challenged to move. Supply is available and market is trending mostly flat. Tenders- Market is steady to firmer. The foodservice channel continues to be the key driver and improved dining activity is having a positive effect. Additional production on a weekly basis is helping to fulfill this demand activity on both select and jumbo sizes. Supply is available but starting to tighten up. Boneless Breast- Market is steady to firmer. All sizes continue to clear well. Retail sales for medium sized boneless is steady and foodservice operations are keeping small and jumbo product moving. The biggest improvement of the week is the increased call for jumbo sized product. Supply is beginning to tighten. Leg Quarters and Thighs- Market is steady to weaker. Export demand for frozen leg quarters continues to be reported as soft. Retail activity on CVP packed product is average at best. Supply has increased over the past few weeks and the market is trending weaker. Wings- Market is steady. Demand for wings is well supported as the foodservice channel is getting an uptick from dine-in activity. Increased weekly supply appears to be trending at the same rate of improved sales. Supply is available.

-- WOGS -▲TENDERS -▲BNLS BREAST -▼ LEG QTR -- WINGS

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TURKEY Market is steady to firm. Total headcount for last week was 3,969,000 as compared to 4,154,000 for the same week last year. Average weights for last week were 31.58 lbs. as compared to 32.30 lbs. for the same week last year. Demand for whole turkeys remains steady due to the strong bookings turned in during the Spring. Boneless breast, bulk drums, and wings continue to be well supported as foodservice operations start to resume. Export needs for back half parts continue to be steady. Supply remains in a tight position as production rates continue to lag last year’s numbers.

Whole Birds- Market is firm. Very little information is being reported on spot activity for whole birds. Booked volume is the key component in keeping the market in a stable and well supported position. Limited supply is being reported with very few spot loads being offered. Breast Meat- Market is steady to firmer. Demand from further processors continues to be very active. As retail deli and foodservice activity remains vibrant; inventories of deli products and pre-sliced meat need to be replenished. Supply for fresh boneless remains tight while frozen breast meat is available. Wings- Market is steady. Domestic and export demand for wings is being reported as stable. Supply remains in a tight position. Drums- Market is steady. Domestic demand is active due to the seasonal lift of summer. Export sales also remain stable at the current time. Supply is limited.

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. Inventories are light for current demand. 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.

▲WHOLE BIRDS -- BREAST MEAT

-▲WINGS -▲ DRUMS

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Snow Crab- Market is firmer. Demand has become active over the past few weeks with demand at retail being very good and foodservice demand improving. 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 coming days. 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. Salmon- Market is mixed. Retail demand has been very good for several weeks with foodservice demand beginning to improve as additional states ease dining restrictions. Demand for product from Chile is very active. 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 to firmer. The market for domestic product is seeing upward pressure due to improving demand putting pressure on the market. Retail demand is also seeing good movement and helping to keep pressure on domestic product. The market for product from other regions is holding steady.

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DAIRY Cheese Market is unsettled. The CME block market dropped steadily this week while the barrel market has moved higher. Production schedules across the country are running six or seven days per week. Inventory is extremely tight. In the northeast milk supply is adequate for production needs. Demand in the region is higher than production levels. In the Midwest production is at capacity. Demand for pizza

cheeses is strong. Western region contacts are processing more milk than ever before. Demand in the retail segment is strong. Producers in the region report a better overall position on inventory, yet customers may have difficulty securing specific types and quantities of cheese.

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Butter Market is weaker. The CME butter market moved lower this week. Cream availability is lower across the country. Retail demand is strong. In the northeast churning has slowed. Producers report lighter cream volumes as well as ice cream and other cream-based product manufacturing is the cause. Foodservice

sales in the region are up from two months ago. Central region producers report similar sentiments with a lack of cream supply. In the west retail demand for butter is good. Foodservice segment interest continues to come in lower that prior year levels. Stock of print butter is good and bulk butter is tight.

EGGS Market is steady. Retail demand is starting to show signs of improvement as grocers can take advantage of available supply and attractive price points. Regional ad activity is on the rise now that retailers have confidence in getting supply while being able to put eggs back in their promotional rotation. Foodservice volume continues to gain momentum but is still reported as light. Fast food QSRs continue to be the key driver of volume with all day breakfast and heavy drive through window activity. Supply is

available on both medium and large sizes but starting to tighten up. Market is trending flat on the medium size and higher on the large size. National weekly shell egg inventory reports shell egg inventory down 5.1% over last week.

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SOY OIL Market is steady. While the soy market has moved upwards in the past few weeks, this quarter is on pace to have the lowest high point in the past 15 years. The market remains steady as the trade deal with China remains in question.

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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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