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 production last week was 3.2% more than the same week a year ago. Beef output is anticipated to mostly trend below 2009 levels into the fall. Many of the beef markets have shown signs of weakness in recent days but by in large have been resisting the typical seasonal declines for mid July. Beef packers may slow production during the next week which could be supportive of overall beef prices. Still, the risk in the beef markets is believed to be lower from here. June retail beef prices were the highest for any month since October 2008. Bearish news for wholesale beef prices.

Pork

Pork production last week was 3.1% larger than the same week a year ago. Pork output is anticipated to mostly trend well below 2009 levels during the next several weeks. Mexico is beginning to resume ham imports from the US after the storm interruptions in recent weeks. This is firming the ham market. Last year, the ham markets traded north of $.90 a pound during August. Belly supplies are limited. Still, the belly market usually peaks shortly and then moves downward. June retail pork prices were the highest since October 2008.

Poultry

Chicken production, for the most part, has continued to trend above year ago levels as chicken producer margins have improved this year. Chicken producers have curtailed broiler egg sets in recent weeks as the industry anticipates a downturn in chicken breast prices and profits. Still, the six week moving average for broiler eggs sets is trending 3.6% above last year which suggests that chicken production should remain well above 2009 levels. Retail chicken prices during June climbed to their highest level in ten months. Rising retail chicken prices could slow chicken demand as we move into the fall. Chicken breast prices appear to be topping. Typically, the chicken breast markets mostly move lower for the rest of the summer.

Seafood

The 2010 western Gulf of Mexico US shrimp harvest is projected to decline 17% from 2009 due in part to the oil spill in the area. The 2010 shrimp harvest is forecasted to be on par with 2008. Smaller shrimp output and lackluster shrimp imports may be bullish for the shrimp markets as the summer progresses. That being said, history indicates that the upside risk in the shrimp markets from here may only be modest.

Oils and Grains

Weather challenges continue to cause concerns for world grain supplies. The corn markets may have the most upside risk from here.

Canned Tomato

The California tomato harvest for processing is starting at its slowest pace in over ten years. The canned tomato markets are stable.

Fruits and Vegetables

2010 green bean for canning acreage is projected to be 6.6% less than last year. The canned green bean market is steady to soft.

Produce

The potato markets continue to trade at fairly inflated levels. Idaho potato stocks are seasonally small as the industry awaits the major harvest later this summer. Typically, the Idaho potato markets peak during the next five to nine weeks and then move notably downward. Last year 70 ct. Idaho potato prices during September were 44% less than the previous month. Challenging weather conditions may continue to limit the lettuce harvest and support lettuce prices. The heat in the east could bring the tomato crop on early. Lower tomato prices may be forthcoming.

Dairy

US milk production during June is estimated to have been 2.4% larger than a year ago due to a 3.7% increase in milk per cow yields and a 1.2% smaller milk cow herd. Dairy farmers did add a net eleven thousand head to the herd during June contributing to the forty thousand head increase for 2010 thus far. The June milk production increase over 2009 was the largest for any month in two years. Warm temperatures are intensifying the current seasonal downturn in milk output. Still, the upside risk in the cheese and butter markets from here may only be modest.