Food Business News - August 14, 2012 - 51

Market commentary for two-week period ended August 10, 2012

Meat and Poultry
Beef, chicken and turkey prices were mostly higher in the latest week while pork values eased. The U.S. Department of Agriculture’s 2012 corn production estimate of 10,779 million bus, down 13% from 2011, did not bode well for future feed costs for livestock producers. Cutout values for choice beef carcasses advanced more than $4 a cwt and moved above year-ago values. Gains were noted for both cuts and trimmings. Pork cutout values eased slightly and were about 15% below year-ago levels. Trimming prices were mixed, and cuts were mostly unchanged. Turkey part prices moved higher but remained well below year-ago levels. Chicken part prices were mostly higher for the week. FBN

Board said. Paste prices were steady. FBN

Nuts
The U.S.D.A. forecast 2012 U.S. peanut production at 5,293 million lbs, up 46% from 2011. Record high yields were forecast in Georgia and Florida, and large increases were expected in Oklahoma and Texas after last year’s drought. The peanut crop in the eight major states was rated 69% good to excellent (26% fair) as of Aug. 5, slightly better than two weeks earlier and far better than 43% a year ago (36% fair), the U.S.D.A. said. The crop was 91% pegging. Peanut prices posted by the U.S.D.A. were unchanged last week but down 2½c a lb from two weeks ago as pricing transitioned to the 2012 crop. Prices were 17½c, or 35%, below year-ago levels. FBN

Fruits
In its Aug. 10 Crop Production report, the U.S.D.A. forecast 2012 U.S. apple production at 8,066 million lbs, down 14% from 2011. Production in western states was forecast up 6%, central states down 79% and eastern states down 31%. Peach production in 2012 was forecast at 1,023,300 tons, down 5% from 2011, the U.S.D.A. said. Pear production in 2012 was forecast at 878,500 tons, down 8% for the year. U.S. grape production was forecast at 7,296,800 tons, down 1% from 2011. California raisin-type grape production was forecast at 1,900,000 tons, down 13%. In the ﬁrst indication of new crop processing apple values, the U.S.D.A. reported prices more than double the start of last year’s season in the Mid-Atlantic region with strong demand, active trading, light offers and a wide range of quality and size. Old crop apple prices in the Paciﬁc Northwest were unchanged, but “substantial losses” of new crop apples were anticipated due to July hailstorms. New York frozen concentrated orange juice futures declined modestly last week as the threat of damaging tropical weather remained at bay. FBN

Dry Edible Beans
The U.S.D.A. forecast 2012 U.S. dry edible bean production at 27,016,000 cwts, up 36% from 2011 based on a 45% increase in harvested area only partially offset by a 7% decrease in average yield. Dry edible bean prices were mixed but mostly steady during the past two weeks. Pinto beans were steady to $3 a cwt lower, navy beans were down $2, great northern beans were steady to up $1 and kidney and black beans were unchanged. FBN

Vegetables
Spot trading of processing potatoes was slow in most areas. Open market prices for “chippers” in the mid-Atlantic region were around $5@5.50 a cwt with contract price minimums near $13 a cwt. California’s processing tomato harvest advanced with 3,896,981 tons expected by Aug. 11, or about 30% of forecast production, the state’s Processing Tomato

Meat and poultry
Aug. 10 Central, f.o.b. plant, $ per cwt Beef Cutout value, 600-900 lbs Ribeye, 112A, heavy Loin strip, 180 bnls, heavy Trimmings, 90% fresh Trimmings, 50% fresh Pork Cutout value, 185 lbs Trimmings, 72% frozen Trimmings, 42% frozen Ham, 20-23 lbs Bellies, 16-18 lbs Chicken - cents per lb, Northeast Breast, bnls, skinless Wings Thighs, bnls, skinless Trimmings, 15%-20% fat Leg quarters, skin on Turkey - cents per lb Breast, 4-8 lbs, bnls, skinless Tenders, destrapped 182.52 620.75 461.75 208.25 44.00 92.80 74.00 65.00 82.00 155.00 137.00 184.50 127.75 23.98 49.25 194.75 185.00 — Change from — Aug. 3 July 27 +4.38 +17.50 +28.75 +2.25 +1.75 -0.35 -2.25 +1.00 — — — +0.50 -1.75 +1.10 +1.50 +4.75 +2.00 +4.27 +35.00 -17.75 +2.25 -0.50 -0.11 -6.00 +3.00 — +10.00 +1.00 +3.25 -1.50 +1.28 +0.50 +12.75 +2.00 Year ago 178.03 522.00 420.25 178.25 91.25 109.43 99.00 88.00 92.00 158.00 123.00 95.75 126.00 25.72 47.75 250.00 225.00

Vegetables
— Change from — Year Aug. 10 Aug. 3 July 27 ago Potatoes (For processing f.o.b. growers, Russett, bulk, $ per cwt) Idaho (french-fry quality) ... ... ... ... Michigan (chippers) ... ... ... ... Maine (chippers) ... ... ... ... Tomato paste (31%, 300-gal bins, cents per lb) California 33.50@35 — — 34@36 East coast 50@55 — — 50@55 Onions (Spanish, jumbo, $ per 50-lb sacks) Idaho/Oregon 11@13 No comp. No comp. ... California 10@12 — +1@2 10@12.50

Fruits
Apples (Delivered to processor, $ per cwt) Washington, peelers 13@16 Washington, juice 12@14 Michigan, peelers ... Michigan, juice ... Mid-Atlantic, peelers 25 Mid-Atlantic, juice 20@22 Cherries ($ per 20-lb carton) Washington (Bing) 24@30 Pears ($ per 40-lb carton) Washington (D’Anjou, 100s) ... — — ... ... — — — ... — — ... ... ... ... — ... 11 9@10 ... ... ... ... 30@34 ...

Dry edible beans
f.o.b. dealer prices, $ per cwt, bags Aug. 10 63.00 @ 68.00 52.00 @ 55.00 52.00 52.00 63.00 @ 64.50 67.00 @ 68.00 45.00 @ 47.00 — Change from — Aug. 3 July 27 — — -2@-3 -2@-3 +1@0 +1@0 -2 -2 — No comp. — — — — Year ago 47.00 @ 51.00 46.00 @ 48.00 51.00 @ 52.00 50.00 @ 52.00 ... 60.00 @ 62.00 50.00 @ 52.00

Nuts
f.o.b. shipping point, cents per lb Aug. 10 — Change from — $/ton cents/lb Aug. 3 July 27 Peanuts (U.S.D.A. weekly national posted prices, 2012 crop) Runner 649.65 32.48 — -2.50 Spanish 633.91 31.70 — -2.50 Valencia 653.17 32.66 — -2.50 Virginia 653.17 32.66 — -2.50 Almonds, California … … Pecans, Southeast … … Year ago 49.98 49.54 50.16 50.16 … …

Pinto, Colo./Neb./Wyo. Pinto, N.D./Minn. Great Northern, Neb. Navy, N.D./Minn. Lt. red kidney, Mich. Dark red kidney, Minn. Black, Mich.

August 14, 2012

FOODBUSINESS NEWS

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Food Business News - August 14, 2012

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