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Commodities Report



The commodity markets specific to foodservice generally declined during the mid-summer, although the major protein markets, including beef, pork and chicken, found at least a temporary bottom in early August. Not true with most of the grain markets as nearby corn futures traded close to multi-year lows. The grain crops have been progressing under favorable conditions during the summer which has caused crop ratings to counter seasonally improve.  As of August 2, around 72 percent of corn and 73 percent of soybeans were rated in either good or excellent condition. This compares to 57 percent for corn and 54 percent for soybeans a year ago. Early private estimates for domestic corn and soybean yields signal big crops and big supplies for the 2020-21 crop year.  The major outlier in the grain markets has been soybean oil futures which recently rose to multi-month highs.  Limited world supplies are encouraging food oil exports while some production is being slowed. Cheese supplies have been limited throughout most of the summer, but that is changing. CME cheese block and barrel prices have fallen sharply as of late.  Good margins for milk farmers are encouraging milk production. Further, the school opening delay is pushing more milk on the open market. Assuming margins remain sustainable for producers, solid milk output growth could continue this fall and into 2021. Pork and beef output growth this summer, compared to prior year, has been strong as hog and cattle supplies are ample due to the curtailed production this spring. However, the burdensome cattle supply could end this fall. Further, deteriorating margins for hog producers could temper pork output expansion next year. Chicken output, on the other hand, has been tracking well below 2019 this summer. Better annual chicken supply comparisons are expected in the coming weeks. 


David Maloni is commodity consultant for American Restaurant Association Inc., a food commodity research, forecasting, consulting, and contract risk management organization founded in 1996 specifically advising the US restaurant and hotel industry and supply chain.


BEEF-Prices are by the pound and based on f.o.b. Omaha carlot.
8/3/20 7/6/20 Difference 8/8/19
Ground Beef 81/19 1.61 1.70 <0.09> 1.86
168 Inside Round (ch.) 2.18 2.20 <0.02> 2.11
180 0x1 Strp (choice) 5.70 6.71 <1.01> 6.08
112a Ribeye (choice) 7.44 7.47 <0.03> 7.83
189a Tender (select) 7.45 7.25 0.20 8.29
189a Tender (choice) 8.38 7.74 0.64 9.62

 

OIL AND RICE-Prices per pound based on USDA Reports.
8/3/20 7/6/20 Difference 8/8/19
Crude Soybean Oil .297 .275 0.022 .272
Crude Corn Oil .454 .490 <0.036> .272
Rice, Long Grain .289 .289 - .243

 

DAIRY-Prices are by the pound and based on USDA reports.
Cheese 8/3/20 7/6/20 Difference 8/8/19
American 2.54 2.47 0.07 1.79
Cheddar (40#) 2.70 2.74 <0.04> 1.91
Mozzarella 2.78 2.82 <0.04> 1.99
Butter(AA)
One pound solids 1.64 1.75 <0.11> 2.35
Class II Cream
Cream 2.32 2.45 <0.13> 3.34

 

PORK-Prices are by the pound and based on f.o.b. Omaha carlot.
8/3/20 7/6/20 Difference 8/8/19
Belly (bacon) 0.96 0.91 0.05 1.54
Spare Rib (3.5& down) 1.39 1.55 <0.26> 1.24
Ham (23-27#) 0.44 0.33 0.11 0.92
Bbybck Rib (2-1.75#) 3.00 2.99 0.01 2.28
Tenderloin (1.25#) 1.94 2.33 <0.39> 1.83

 

POULTRY-Prices are by the pound except for eggs (dozen) and based on USDA reports.
Chicken 8/3/20 7/6/20 Difference 8/8/19
Wings 2.03 1.82 0.21 1.87
Bnless Skinless Breast 1.08 1.20 <0.12> 1.03
Eggs
Large 0.70 0.79 <0.09> 0.50
Medium 0.46 0.58 <0.12> 0.38
Miscellaneous
Whole Turkeys (8-16#) 1.11 1.08 0.03 0.90

 

PRODUCE-Prices are by the case and are based on USDA reports.
8/3/20 7/6/20 Difference 8/8/19
Limes (150 ct.) 23.50 11.00 12.50 19.00
Lemons (200 ct.) 28.19 27.70 0.49 28.47
Cantaloupe (18 ct.) 11.00 17.20 <6.20> 4.50
Strawberries (12 pts) 17.00 13.00 4.00 7.50
Avocds (Hass 48ct.) 31.67 33.17 <1.50> 51.00
Idaho Potato (70 ct.) 19.50 13.75 5.75 19.00
Yellow Onions (50 lb.) 9.83 12.00 <2.17> 12.67
Red Onions (25 lb.) 13.17 10.67 2.50 16.75
White Onions (50 lb.) 18.47 20.12 <1.65> 29.46
Tomatoes (5X6-25lb.) 15.96 13.20 2.76 15.95
Roma Tomatoes 14.87 11.95 2.92 13.95
Green Peppers 13.18 26.78 <13.50> 15.18
Iceberg Lettuce 15.25 16.19 <0.94> 8.54
Leaf Lettuce 9.50 10.61 <1.11> 8.89
Romaine Lettuce 19.00 20.02 <1.02> 11.45
Broccoli (14 ct.) 8.33 14.60 <6.27> 10.13

Market information provided by David Maloni of ArrowStream.  ArrowStream is a foodservice supply chain technology company that helps clients capitalize on data to improve their business.  Learn more at ArrowStream.com

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