Dave’s Weekly Market Update – January 28, 2021

Good afternoon,

The egg market continued its rapid rise this week. I’m hearing it should stop soon and turn around shortly thereafter.

Burdensome inventories and lackluster demand are driving the market down. I am not sure how long it will stay this low or if it may drop more. Fun times!

Butter Blends and Margarine:
After struggling for months with supply, AAK has been in better shape and we have both the Alpine Valley 60/40 butter blend and the regular lower cost blends available.
The oil market has surged as of late and it is causing dramatic rises in the costs of these items as well as mayonnaise. All manufactures have followed the market upwards and we are seeing prices we have never seen before in these commodities.

It is kind of the same story for the cheese markets. When the Farms to Families Food Box Program was announced they called for $1.5 Billion in dairy purchases. This caused the rally a few weeks ago. The awarded amounts were somewhere in the range of $340 million. This was far less and the markets have been correcting since that was announced The US dairy prices are priced very low against the world markets and exports may absorb some of the excess inventories that are driving the markets down presently.

The cream market rose slightly this month which is being reflected in next month’s pricing.

We all thank you for your continued business and hope you have a safe and relaxing weekend.

About Honor Foods

Honor Foods, a Burris Logistics Company, was founded in 1949 as a redistributor of center-of-the-plate foods. Since then, Honor Foods has grown into the Mid-Atlantic region’s premier provider of frozen, refrigerated, dry, and dairy products, representing more than 300 brand-name food suppliers and carrying more than 3,000 in-stock items. Honor Foods brands R.W. Zant and Sunny Morning provide additional beef and dairy expertise on the West Coast and in the southeast. In addition, our exclusive house brands — Colony Lane and Valley Fresh, have a well-earned reputation for top quality and value at competitive prices.

Great products and prices are just part of the Honor Foods value-add. We pride ourselves in having a Team of dedicated professionals who manage each partnership. Our commitment to your business needs is what makes us unique.