Wings, Wheat and War

Beef processors are keeping the plants humming, last week’s production of 663K head was up from the prior week’s 659K.  Bellies closed at $214 yesterday, up from last week’s $209.  Breasts now cost more that wings.  That usually doesn’t last long then breasts out price wings, so either wings will move up again or breasts will come down. My bet is wings will move higher into March.  The Avian Flu watch continues with another turkey farm in Indiana having to “depopulate” – what a word, all 14,500 birds due to Avian flu infection.  Still not a “crisis” but certainly worth keeping an eye on.  War has a way of making commodity markets jumpy. All of em.  Corn closed yesterday at $6.89 up from last week’s $6.53.  Weather in South America, war in Ukraine, all make American corn more valuable.  Unfortunately it means it costs more to feed the animals we eat.  No good news here.  Soy is moving up as well, three straight weeks of increases and I’m hearing expect more to come.  Wheat is the one taking off due to conflict in Ukraine.  I’ve been saying a while stay ahead on flour, lets really keep that advise, Ukraine and Russia account for about 29% of the worlds wheat exports and right now that commerce is in jeopardy.  Finally Dairy.  Thru Thursday Butter is actually down $.10 but I think we need to prepare for some higher prices on butter again.  Exports for American butter are up and export demand is strong.  Look at Block up $.03 and barrel up $.01 through Thursday.  This is shaping up to be an expensive dairy market for 2022.  Episode sources: https://www.uniprofoodservice.com/https://www.urnerbarry.com/https://www.barchart.com/https://www.aphis.usda.gov/aphis/ourfocus/animalhealth/animal-disease-information/avian/avian-influenza/2022-hpai https://www.ams.usda.gov/market-news/daily-pork-reports https://usda.library.cornell.edu/concern/publications/gm80hv35d?locale=en#release-items http://www.cheesereporter.com/pricesbutter.htm Savalfoods.com | Find us on Social Media: Instagram, Facebook, YouTube, Twitter, LinkedIn