SYSCO Food Services of Columbia, LLC

Market Updates
These Market Reports are filled with information about market fluctuations that could effect your food cost. Each report is available to arm you with the knowledge you need to make menu adjustments if necessary.

Beef, Veal and Lamb

Beef output last week rose 1.9% but was 5.3% less than last year. Many of the beef markets are moving higher due to lower production rates in recent weeks. US beef exports in Dec were up 5.1% compared to last year. In '11, the US became a net annual beef exporter for the first time in recent history. The US should be a net exporter this year as well. This should help support the US beef markets going forward especially in combination with tight cattle supplies. Dec US beef imports were 8.8% more than '10. The current 90% beef trimming price is 32% above the 5 year average for the date.

Pork

Pork production last week fell .6% and was .8% lower than '11. Pork packer margins have been poor and have discouraged pork output. This is bringing support to the pork markets. US pork exports in Dec were up 30% compared to last year and were a record high for that month. Export volumes to China rose significantly last year. In fact, China consumed 2% of US pork output. China buying may highly influence the future price direction of US pork.

Poultry

Chicken exports in '11 were up 16.7% compared to '10 and were a new yearly record. This was primarily due to a sharp increase in trade with Mexico (25%), S. Korea (54%), Vietnam (35%) and China (22%). Yet, chicken export sales to Russia were down (21%) versus the previous year. Fairly strong US chicken exports could persist this year which may lead to higher dark meat chicken markets. The ARA chicken wing index has fallen 4.3% from its record high set earlier this month. Lower wing prices usually occur in the coming months but any pending price declines may be tempered this year. The ARA chicken breast index has declined roughly 4% in '12. Still, higher chicken breast prices are likely to occur this Spring.

Seafood

In Dec, US total shrimp imports were up 1.6% but shell-on shrimp imports were down .4% versus '10. Shrimp prices are currently lower than last year but remain reasonably high which should encourage US shrimp imports in the coming months. This could keep shrimp prices below '11 levels. US salmon fillet/steak imports in Dec were 24% greater than '10. Salmon prices are 14% below the 5 year average for the date.

Oils and Grains

US corn planted acreage this year could be the largest in 68 years. This is anticipated to lead to lower US corn prices during the latter half of '12.

Canned Tomato

The canned tomato markets remain relatively steady to firm. Supplies are adequate but higher prices could take hold this summer.

Fruits and Vegetables

Potato supplies are adequate. 2012 raw product contract prices for processors are being negotiated. The French fry markets are firm.

Produce

Last week tomato shipments in the US were up 9% and tomato prices moved modestly higher as well. The Mexican tomato harvest is in good shape due to excellent growing weather conditions and supplies are projected to remain healthy from this region. Yet, tomato supplies from Florida have decreased in the recent week due to some tomato growers reducing their harvest. It's unlikely that the existing deflated tomato prices can persist much longer. The lettuce markets are likely to firm this week due in part to challenging weather conditions in the major growing areas.

Dairy

US butter exports in Dec were down 30% versus '10. The CME spot butter market has weakened during the past week and is hovering above its recently established 2 year low. Although butter export demand has been soft, global butter prices are at a healthy premium to US butter. This should encourage US butter exports, and in time provide support to the US butter market. The CME spot cheese markets as of late have been soft but a bottom may likely be forming. The cheese markets may firm in the coming weeks. US cheese exports in Dec were up 2.3% versus '10.