Food Business News - September 25, 2012 - 64

Ingredient Markets
Market commentary for two-week period ended September 21, 2012

Meat and Poultry
Wholesale beef prices continued to show some modest recovery, holding about 5% above year-early values but still below June highs. Pork cutout values remained under pressure from heavy slaughter rates but showed signs of bottoming, although values were well below June highs and still 20% below yearearlier prices. In its Sept. 18 Livestock, Dairy and Poultry Outlook, the U.S. Department of Agriculture said, “Recent sow slaughter dynamics and higher sow prices in August suggest hog producers are not in a full-liquidation mode in response to record-high feed prices.” Chicken part prices declined last week but were mixed for the two weeks while turkey parts were mixed after advancing steadily since mid-June. The U.S.D.A. reduced its forecast of third and fourth quarter 2012 broiler meat production by 50 million and 150 million lbs, respectively, as high feed prices reduced chick placements. FBN

harvest was 15% completed in Idaho with “a wide variety of yields and quality,” according to the U.S. Department of Agricultre. Harvest ranged from 10% to more than 50% completed in other states. Final 2011 fall potato production was revised up slightly to 391 million lbs, (91% of total output for all seasons) in the U.S.D.A.’s Sept. 12 Crop Production report. The first 2012 fall crop estimate will be made in October. California’s processing tomato harvest was estimated at 10.2 million tons by Sept. 22, about 10% ahead of the year-ago pace and about 80% of forecast total production, the state’s Processing Tomato Board said. Paste prices were steady. FBN

recent trading range as weather concerns dissipated at midweek. FBN

Nuts
The peanut crop in the eight major states was rated 76% good to excellent (21% fair) as of Sept. 16, unchanged from the prior two weeks and far better than 34% at this time last year (42% fair), the U.S.D.A. said. The crop was 7% harvested, up from 4% at the same time last year and as the ﬁve-year average. U.S.D.A. posted peanut prices were unchanged last week but were about 50% below year-earlier values. Oregon hazelnut production was forecast at 40,000 tons, up 4% from 2011 even though this typically would be a “down” year in the alternate-year bearing pattern for the crop. FBN

Fruits
Demand was good as new crop apple prices became better established as the harvest progressed. Prices were slightly above year-earlier values in the Paciﬁc Northwest, where production is up from 2011, but were sharply higher in Michigan and the East, where crops were smaller due to adverse weather. New York frozen concentrated orange juice futures rose to near ﬁve-week highs early last week on weakness in the dollar and tropical storm threats, only to retreat to the

Dry Edible Beans
Dry edible bean prices were mostly steady to lower the past two weeks as new crop pricing was established for all varieties and across all regions. With the exception of kidney beans, which were about ﬂat, prices were down 7% to 25% from a year earlier. Pressure came from an early harvest and good yields, the U.S.D.A. said. FBN

Vegetables
Spot trading of processing potatoes was mostly inactive as harvest progressed across all regions. The

Meat and poultry
Sept. 21 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 194.27 681.50 451.50 212.25 55.75 76.42 49.00 40.00 70.00 107.50 136.75 189.75 126.75 23.95 51.25 226.50 194.00 — Change from — Sept. 14 Sept. 7 +2.73 +9.00 +21.75 +0.75 +0.50 -1.53 -2.00 -4.00 — -4.50 -7.25 -0.50 -2.00 +0.02 -0.75 +0.50 -1.00 +2.71 +1.50 -2.50 -2.25 -3.50 -2.14 -3.75 -2.00 +3.00 -13.50 -12.25 +2.75 -3.75 -0.32 +0.25 +2.50 +3.00 Year ago 184.46 609.75 400.75 171.50 87.00 97.51 102.25 58.00 88.00 115.00 125.25 113.75 134.50 31.01 52.75 267.00 241.00

Vegetables
— Change from — Sept. 21 Sept. 14 Sept. 7 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 — — East coast 50@55 — — Onions (Spanish, jumbo, $ per 50-lb sacks) Idaho/Oregon 6@9 — — California ... ... ... Year ago ... ... ... 34@39 50@55 5.5@7 ...

Fruits
Apples (Delivered to processor, $ per cwt) Washington, peelers 14@15 Washington, juice 9.50@13.50 Michigan, peelers 23@28 Michigan, juice 20@22 Mid-Atlantic, peelers 22.50@26.50 Mid-Atlantic, juice 21@26.50 Cherries ($ per 20-lb carton) Washington (Bing) ... Pears ($ per 40-lb carton) Washington (D’Anjou, 100s) ... — -1@-2 — ... — — — — — +.50@+1.50 — +1@+1.50 ... ... ... ... 11 9 10.50@14 6.50@7.50 8.50@14 7@11 ... ...

Dry edible beans
f.o.b. dealer prices, $ per cwt, bags Sept. 21 48.00 @ 51.00 40.00 @ 43.00 50.00 @ 53.00 41.00 @ 43.00 62.00 @ 65.00 64.00 @ 66.00 40.00 @ 44.00 — Change from — Sept. 14 Sept. 7 0@-2 -7@-4 -2@-2 -3@-5 0@+1 ... 0@-2 ... -1@+1 ... ... ... — ... Year ago 55.00 @ 57.00 53.00 @ 55.00 54.00 @ 56.00 55.00 @ 55.00 63.00 @ 63.00 ... 53.00 @ 55.00

Nuts
f.o.b. shipping point, cents per lb Sept. 21 — Change from — $/ton cents/lb Sept. 14 Sept. 7 Peanuts (U.S.D.A. weekly national posted prices, 2012 crop) Runner 549.65 27.48 — — Spanish 533.91 26.70 — — Valencia 553.17 27.66 — — Virginia 553.17 27.66 — — Almonds, California … … … … Pecans, Southeast … … … … Year ago 54.98 54.54 55.16 55.16 … …

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.

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September 25, 2012
Food Business News - September 25, 2012

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