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Joel's Market Analysis March 29, 2020



Joel's Beef, Pork & Poultry Market Analysis
Overall Market Health Summary, News & Notices: Uncertainty in the markets remains, however panic buying seems to have diminished. Meat demand by restaurants has been diverted to grocery stores and the panic buying by the public. People seem to have filled their freezers and have lessened their mass purchasing as we saw last week.
Market News: I was contacted this week, by a company out of Virginia. They wanted 500 Tons each of every part of a chicken as well as pigs each week to send overseas. There is demand, and they're searching all over to fill their needs.
Grain Futures: Corn prices softened at week's end. Futures prices are leaving little incentive for farmers to carry grain forward. This is encouraging farmers to market grain now and the corn basis is weakening
Upcoming "National Days" - Add Some Fun to Your Daily Specials - I'm not sure who thinks of these things or how in the world they became "National Days". Enjoy!
  • March 27 - National Spanish Paella Day
  • March 28 - National Black Forest Cake Day
  • March 29 - National Mom and Pop Business Day
  • National Lemon Chiffon Cake Day
  • March 30 - National Turkey Neck Soup Day
  • March 31 - National Clam On the Half Shell Day
  • National Tater Day
  • April 1 - National Sourdough Bread Day
  • April 2 - National Peanut Butter & Bread Day
  • National Burrito Day
  • April 3 - National Chocolate Mousse Day
People buy from people.... Businesses work together...
This is my family, this is who I am. When you buy from me, you help my family. Soccer games, t-ball, stroller walks, bike rides, learning to read, night time stories, dirty diapers and more, I love every minute of it. I want to thank You for your business in the past and going forward, my family thanks you as well. In general, I'm no one special, but to them, I mean the world. I'm very lucky.
Wenneman Price Sheet Notables: A LOT of Movers
  • Beef –  Beef sides from our slaughter, Chuck Rolls, Peeled Knuckle, Choice Beef Tenderloin, Top Butts and ground beef all went down. Choice Beef Tenderloin is below $9/# by the case. HUGE DROP. Inside rounds, short loins, clods and bottom round flats went up.
  • Pork Market Pigs are still just $0.95/#. Fresh Bellies, Boneless Callies, Fresh Hams, Pork Butts all went down. Blade On Pork Loins, boneless pork loins, inched higher.
  • Chicken – Our 8 pc marinated chicken REMAINS UNCHANGED, wings went down, while random chicken breast went higher.
  • Turkey – We have locked in whole frozen turkey prices through the remainder of 2020. Pre-Order now.
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Nationwide Market Reports according to various USDA, beef & pork industry web sites, market discussion & somewhat educated guess...
Beef  Beef slaughter is at approximately 653,000 from 639,000 the previous week.  Live weights averages were at 1,377 lb average and dressed weights average at 832 lbs. Total production at 541.6 million pounds.
  • Cattle futures fell by the daily permissible limit as the unemployment claims hit the market and concerned traders about the impact on beef demand. The cattle futures have now uncoupled from the stock market and the evidence of a dysfunction is on view for all to see.
  • Box prices peaked and the composite turned lower. Rapidly turning over meat counters have caught demand but there remains a large margin at the processing level that can lose many dollars and still maintain generous margins. 
  • Retailers are finding a calming and more routine level of traffic in stores across the country. Eating at home will become more routine with regular trips to the market for many Americans during this health crisis. Meat counters were watching the shelves for cut selections of consumers as they plan eat at home menus.
  • The core participants in cattle futures trading are the commercials. They are always around and always interested in protecting pricing. They include a mixed bag of interest ranging from:
  • Supermarkets. These are longs wanting to fix future prices for beef.
  • Food service. These include restaurants, and fast food companies who also are long hedgers.
  • Processors. They can be long of short but are protecting processing margins or either cattle they buy from producers or beef they sell to retailers.
  • Exporters. These are global participants who can be either long or short depending on whether they are buying or selling.
  • Cattle feeders. Mainly short hedgers using the appropriate out month for locking prices. 
Pork –   Pork Slaughter under federal inspection was at 2,639,000. Live weights averaged 288 pounds and dressed weights averaged 215 pounds. Primal Callies, Ribs Hams and Bellies are expected to go down, while Loins and butts inch higher.
  • Economists say since COVID-19 crisis, cash prices of major products, such as hams and pork loins, are holding up well, however there is significant weakness in the pork belly market.
  • COVID-19 and export potential with China are creating uncertainty in the 2020 pork outlook. As the sway of the pandemic increases unemployment and decreases consumer income levels, demand, rather than supply, will be the driving force in the markets
Chicken –  The estimated number of fryers available for marketing based on the 2-week revised average chick placements 6 to 7 weeks earlier was 170.7 million head. Estimated U.S. slaughter for this period was 173.8 million head, or 3.1 million more than estimated available.
  • Whole broiler/fryer prices are generally trending weak for most sizes. Offerings of all sizes range light to available with supply levels varying by region. Retail demand is light to moderate in the Eastern region, moderate to good in all other regions. Food service demand remains light to moderate. Floor stocks are sufficient to at times light. Market activity is slow to moderate. In the parts structure, prices for boneless skinless breasts and wings are steady to weak, with larger size wings in the weakest position. The balance of parts are steady at best. 
  • Offerings of boneless skinless breasts and tenders are moderate to heavy for current needs. Wings are readily available with some discounting noted on medium and jumbo sizes. The remainder of parts are light to moderate. Market activity for parts is mostly moderate. In production areas, live supplies are moderate. Weights are mixed, but noted as mostly desirable.
Turkey - The market on frozen 8-16 lb. hens and 16-24 lb. toms is steady with a steady to firm undertone. Demand light with some watching market developments. Frozen processor offerings of Grade A 8-16 lb. hens and 16-24 lb. toms are light to moderate.   
  • The market on fresh white meats is steady with fresh tom breast meat having a steady to fully steady undertone, fresh and frozen white trims steady. Frozen white meat market is steady to weak. 
  • Demand on fresh tom breast meat moderate to instances good, scapula and fresh destrapped tenderloins light to moderate, balance of white trims light and frozen white meat very light to light. Offerings of scapula and fresh breast meat light to moderate, balance of white trims mostly moderate, frozen tom breast meat and frozen tenderloins moderate to heavy. 
  • The market on bulk parts is steady to firm with tom drums and full-cut wings steadiest. Demand light to good, usually moderate. Offering of bulk parts is light to moderate. The thigh meat market is steady to weak with fresh steadiest. Demand light to moderate. Fresh offerings light to moderate and frozen moderate to heavy. The mechanically separated turkey market is steady. Demand moderate. Offerings light to moderate. Trading mixed ranging slow to moderately heavy, mostly moderate. 
Instagram, tag us:
I personally believe that we could all elevate the St. Louis food scene even more with a food based forum. TableGab.com is the place where:
  • Chefs can promote themselves, their creations, blogs, photos, etc.
  • Restaurants can promote their food, drink, entertainment, banquet space and more. Upload daily specials, etc.
  • Foodies can interact with chefs and restaurants. Restaurant reviews, blogs, photos, home creations and more.
Please tell others about or share this weekly report with a fellow business owner, chefs, butcher shop, supermarket or anyone who is interested in the ever changing meat industry.  They can contact me to be added to the list at Joel@Wenneman.com   I greatly appreciate your kind words or recommendations to others in the industry as well.  I appreciate your feedback as well.
Tell me I'm ugly or I have a bad hair cut...
but please buy your meat products from me in 2020!!!  
 There are a lot of warehouse providers out there, I hope that I can service your company’s needs better, and be an asset to you as your salesperson.   I look forward to your feedback on these weekly updates as well. Please buy your meat from me. Who else gives you a weekly market report like this?
Take a Tour of Wenneman Meat Processing Facility. I’d like to personally give you a tour of our processing facility, so you can see what makes us different than the large warehouse companies. Contact me to schedule your personal tour of our plant.  All current plant tours have been suspended. Stay tuned for further information.
Thank you for the opportunity to EARN your business, trust and friendship.  I am very thankful for your friendship and business. Have a great weekend with your family and friends,
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Joel Sommer
Wholesale Sales, Co-Packing & Distribution
618-979-0100 Cell
618-768-4328 Office
This newsletter brought to you by Wenneman Meat & TableGab.com
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I personally built and own TableGab.com in an effort to promote the St. Louis food scene, provide a safe spam free, politic free, cat video free place for chefs, restaurants, foodies, consumers and more to share together. Customers can see what their favorite chef is adding to the menu, restaurants can post their specials, set up their own menus, add photos, interact with the consumer and more. It's FREE for all to use. 
All that I ask is that you set up a profile for yourself, and one for your business.... All FREE. I will not sell your contact information. I just have a passion for the St. Louis food scene, and want to promote discussions. I hope to see you there. Instagram: #tablegab.comstl


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