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IMPORTANT FOOD MARKET UPDATES:  Week Of August 15, 2022

Source: Uni-Pro Foodservice Market Insights
 
CATEGORY NEAR-TERM MARKET PRICING TREND SUPPLY vs. DEMAND DSR MARKET INSIGHTS COMMENTARY
Beef (Commodity) Stable Available - Steady Boxed beef price remains stable. Look for the rib complex to firm with some minor price appreciation ahead driven solely by retail and Labor Day weekend.  
Butter Stable Available - Strong Exports are continuing to support U.S. pricing. However, there is now some weakness within international pricing that has potential to provide some relief in the coming weeks if domestic demand doesn't improve.  
Fluid Dairy Decreasing - Class 1             
Increasing - Class 2
Available - Steady - Class 1    Short - Strong - Class 2 For August, Milk (Class I) slightly deflated. Cultured (Class II) products are inflated. Cream production remains short, with the northeast suffering the most. Shortage is expanding as 5 plants closed or announced closing in FL, SC, MI, AL & MS.
Cheese Decreasing Available - Strong Recently, pricing has stabilized lower at a more palatable level. With seasonal school demand kicking off and with record export demand, don't expect any further deflation in market pricing in the near term.  
Canned Fruits & Vegetables (Peas, Corn, Various Fruits) Increasing Short - Strong Foodservice producers of several once-a-year packed canned commodities are now underway with new pack production. Supply challenges remain for categories such as pears, carrots, and potatoes. New pack production in September.   
Canned Fruits & Vegetables (Canned Pudding & Cheese Sauces) Increasing Short - Strong Industry wide shortages of modified food starch (used extensively in the production of puddings and cheese sauces) continue today, and will likely persist into October. 
 Oils/Shortening/Margarine Stable Mixed - Strong No major changes have occurred on commodity and premium oils in recent days. Supply issues will remain a concern through the summer as manufacturers watch the upcoming crop for yield levels. Palm oil products (cube shortening and margarine) continue to be in limited supply based on limited imports. It is expected that stable palm imports may resume soon, but supply will likely remain limited for a few weeks. Resulting in inflated pricing and potential allocations and/or shortages. High oleic products still remain very tight and will until at least fall. Price fluctuations during summer months will be based on weather impact on the upcoming crop.
Pork (Commodity) Decreasing Available - Strong Pricing on bone in and boneless pork butts, and spare ribs are on the decline with reduced demand. Expect deflating values now through October.
Pork (Value-Added) Mixed Available - Strong The price of bellies have hit the highest point in 2022, expect ever increasing bacon prices. Pricing on sausage, pizza toppings, and franks should begin to level off as the grilling season comes to an unofficial end with the Labor Day holiday.
Poultry (Chicken) Decreasing Available – Steady Boneless breast meat prices continue to deflated. Spot availability is showing on all sizes. Wings have stabilized and are holding steady near term with spot availability showing. Tenders are holding steady with some availability. Demand on whole chickens and WOGS remains steady with spot availability showing. Demand for the back half of the bird has declined with spot availability showing.
Poultry (Turkey) Increasing Short – Strong Breast meat prices remain steady at all-time highs, as do the rest of the parts of the bird. Availability on whole toms and hens is scarce with prices remaining at all time highs.  This trend is expected to continue through the summer and possibly into the back half of the year. 
Produce Decreasing - Avocados & Onions               Steady - Oranges, Iceberg, Romaine & Tomatoes                            Increasing -  Apples, Strawberries & Idaho Potatoes    Available - Steady - Avocados, Tomatoes & Onions                      Available - Strong - Strawberries                               Short - Strong - Apples, Oranges, Iceberg, Romaine & Idaho Russet Potatoes Apples' gala supplies will gap as storage is finishing early and new crop harvest will be delayed until late August. Strawberries' demand exceeds declining supplies. Pricing and market is inflated. Avocados market is at the bottom as Mexico new crop is hitting peak supplies. Oranges, Valencia(seeds), supplies are extremely tight through October. Onions shortages in California and New Mexico are easing. Idaho and Oregon crop starting. Pricing is easing. Tomatoes production is in full swing. Market is steady. Iceberg and romaine are experiencing quality issues due to heat. Market is stable. Idaho potatoes market is setting historic highs. Extremely limited supplies, but quality is fair. Storages will be exhausted prior to new crop in late-August. Suggest sweets, whites, golds and reds as alternatives.
Seafood Swai & Tilapia - Decreasing Swai & Tilapia -
Available - Mixed
Demand varies by region and by sales channel (retail vs. foodservice, etc.), but supply is strong across the board for almost all pack sizes of swai and tilapia. Prices continue to deflate on an almost weekly basis, and are now 20-25% off their record highs earlier this year.
Shell Eggs Decreasing Short - Strong We are continuing to see a rebound in supply as the impact from Avian Influenzas has subsided. Which has led to lower market pricing.  
Sugar Mixed Short - Strong Sugar prices remain inflated domestically as supply will remain tight until new crop can be harvested. Beet sugar is in extremely tight supply and cane sugar manufacturers are struggling to make of the difference. Prices are not expected to potentially deflate until at least fall.
Wheat (Flour Based Products) Stable Mixed - Strong Flour prices have dropped since their extremely high spring levels and have been relatively steady in recent weeks. Prices are being watched closely as much of the worlds wheat supply ships out of the Ukraine area. Shipments have been minimal from that region due to the conflict. It is unknown if normal shipments will resume. Manufacturers are watching supply levels very closely. We do not expect to see any significant price declines near-term.
PP (Polypropylene)
Microwavable to go Containers
Decreasing Available Overall polypropylene containers hinged and bulk microwavable containers such as Anchor: culinary light, culinary basic, culinary classic are seeing some price deflation.  Also, PP deli containers, soup containers and portion cups continue to be your best margin option today for functionality verse their styrene based equivalents.
All UniPro Foodservice DSR Market Insights information is based on domestic US market data only, unless indicated otherwise. The UniPro Foodservice Market DSR Insights update is not a recommendation to buy or sell a commodity.  While this update is based on sources we believe to be reliable and accurate, UniPro Foodservice does not guarantee the accuracy of the information presented.