Dave’s Weekly Market Update

Good day to all!

Honor Foods Springfield:
We are preparing to close up here as shipping out of Springfield will conclude in the next few days, and we will be closing completely in two weeks.

I have been here almost 30 years and have developed great relationships with many of you.  Even though it’s a bittersweet time for us here in Springfield, we look forward to continuing our relationship at the new Tacony Street location in Philly.

We cannot thank you enough for your help in getting us to where we are today. Without you, our loyal customers, this would never have been
possible.

Eggs:
The egg market was flat again this week.
It appears that Urner Barry has finally found the bottom on Large and Extra Large and they are now making adjustments on Jumbos. Shell egg inventories reported on Monday backed off but were still the second-highest ever on record. Retail is not great, but May is never a good month as end-users transition to the outdoors. Some retailers are beginning to have better movement.
Bird numbers have been coming down, but there are still too many for the current demand. Complicating this issue is that producers must continue to build production for California’s 2022, 100% cage-free requirement. Another unknown center around producers across the country that now produce in California compliant Enriched Colony systems. These are not cage-free. Will they simply use those systems for conventional and backfill them with more birds, or will they convert those buildings to cage-free? Either way, the increased cost all producers now face as a result of skyrocketing commodity prices, has driven up break-even points that have increased significantly.

Butter:
Since butter prices rose substantially this week, only four loads changed hands, which indicates that people are holding onto their stock, hoping for higher markets. Ice cream manufacturing is diverting cream demand, which is one reason why the supply is tightening up.

Cheese:
The Block market has been active with 29 loads changing hands. It dropped last week and was rebounding until today when it dropped again. A sharp drop at the end of last week has been erased, as barrels are on the rise. It is difficult to predict where we will go from here.

We all wish you a safe and relaxing weekend & thank you!