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IMPORTANT FOOD MARKET UPDATES:  Week Of June 13, 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 Packers are gearing up for July 4th volume. Cattle harvest levels are expected to increase. Production may exceed demand, placing downward price pressure in seasonal middle meats going into July.
Butter Stable Available - Strong Strong export demand continues to offset decreasing domestic demand, which is holding the market within a tight price range.  
Fluid Dairy Increasing - Class 1       Increasing - Class 2 Available - Steady - Class 1    Short - Strong - Class 2 June cost increases on both Milk (Class 1) and Cultured (Class 2) products are in place. This cost increase is primarily due to inflated cost of raw milk paid to farmers. COVID-19 inflated input costs, reduced production and ongoing dairy plant closures are reducing industry-wide capacity. Recent closures in FL, SC, TN, & MI.
Cheese Stable Available - Strong Even with cheese stocks slightly up year over year, demand remains firm.
 Oils/Shortening  Mixed Mixed - Strong Oil and shortening products continue to see inflated pricing based on world-supply concerns. High oleic products, Canola and Sunflower products are in tight supply. Availability on these products will likely be limited to existing customers. Soybean oil prices have decreased slightly in recent weeks. However, all prices are expected to remain at inflated levels through the summer. 
Honey (Bulk) Stable Short - Strong Honey prices remain inflated due to government imposed tariffs on most imported honey. Pricing levels are not expected to reduce any time soon. Product availability is fairly tight.  At this time we are not seeing any significant shortages.
Frozen Potatoes Increasing Short - Strong Short supply, strong demand and cost inflation continue to have a huge impact on availability and pricing.
Frozen Fruit & Vegetables Increasing Short - Strong Frozen vegetable processors are facing significant increases in all cost component areas. Expect unprecedented price inflation to begin July  1, 2022.  
Pork (Commodity) Mixed Available - Strong Prices for most commodity pork are decreasing. The butt should hit its peak this week, but along with the sparerib, loin, and picnic should decreasing. 
Pork (Value-Added) Mixed Available - Strong The belly price is increasing now through July so expect bacon to increase as well. While fresh ham value is decreasing, smoked hams will increasing in price due to labor issues. Sausages and frank prices should increase in August. 
Poultry (Chicken) Mixed Mixed – Steady Boneless breasts of all sizes started to decrease in price. Demand on whole chickens remain steady with little spot availability. Wings remain steady with availability on all sizes and prices are remaining steady. Demand for the back half of the bird continues to outpace production.
Poultry (Turkey) Increasing Short – Strong Due to the impact of HPAI, turkey availability is scarce.  Breast meat prices continue to inflate to all-time highs, as do the rest of the parts of the bird.  Spot availability on whole toms and hens is scarce, and prices are also increasing on whole birds.
Produce Decreasing -  Strawberries                Steady - Iceberg, Romaine, Carrots & Onions                             Increasing -  Avocados, Garlic, Idaho Potatoes & Tomatoes             Available -Steady - Romaine, Iceberg & Onions                            Available - Strong - Strawberries                               Short - Strong -         Avocados, Tomatoes, Carrots, Garlic & Idaho Potatoes Strawberries' good yields and nice quality are deflating pricing. Avocados in Mexico are experiencing slow harvest, which is inflating pricing. Peruvian avocados are arriving. With onion supply in California and New Mexico crops ample, medium is peak size. Carrot supplies remain short on jumbo, but ample on small sizes. Domestic garlic persists to experience tight supplies and inflated levels. Tomatoes pricing on all varieties is inflated due to light volume. Romaine and iceberg pricing is steady with fair quality. Idaho potatoes supplies to be limited and price inflation until end of season. 
Seafood Mixed Available - Strong Swai prices are continuing to deflate, but are still roughly 25% higher than historical average pricing. While currently sitting at 50% above historical averages, tilapia prices are continuing to inflate. This is due to port closures in China, which is the primary producer for tilapia. 
Shell Eggs Stable Short - Strong After a couple of quiet weeks, Avian Influenza cases have struck again and are keeping pricing steady.  
Rice Increasing Short - Steady During recent meetings, rice industry representatives reported that they believe the US rice crop will be down closer to 14% from last year, rather than the 3% currently being predicted by the USDA.  Expect continued firming in the market as we approach new crop this summer.
Sugar Increasing Mixed - Strong With domestic sugar supply being tighter than it was earlier in the year, this is causing prices to inflate. Prices on types of sugar and sugar based products (finished goods) will remain inflated as we move into fall. Pricing relief is unknown at this time. Supply of certain products may be limited in certain areas of the country.
Wheat (Flour Based Products) Increasing Short - Strong Prices on wheat products (flour and flour based products) remain at inflated levels versus prior years. No short-term pricing relief is expected. Currently, supply is available to cover existing business.
Disposables (Polypropylene - Microwavable to go Containers) Decreasing Available - Steady Resin prices are starting to deflate and are expected to stabilize. With hurricane season coming, one should proceed with caution. A hurricane in the Gulf of Mexico can create issues with resin production. 
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.