Oils & Grain:
The USDA recently adjusted their corn (down 8% from 07) and soybean (up 10% from 07) harvest forecasts for the current crop. The grain markets remain volatile.

Seafood:
The snow crab leg market remains fairly firm. History indicates that the existing inflated snow crab leg prices may persist through the winter. The whole salmon market could move modestly lower during the next few weeks due to sluggish demand. Thereafter, holiday season demand could pressure salmon prices moderately higher.

Beef/Lamb:
Beef production last week rose 2.4% but was 3.5% less than last year. September beef cow slaughter was 31% greater than the prior year but beef trimming prices have remained well above 2007 levels due to a slowdown in imports and strong trimming and grinds demand. If the dollar valuation continues to appreciate, beef imports could expand in the coming months which would be bearish for trimming prices. However, strong demand is expected to support trimming prices above year ago levels into the winter.

Pork:
Pork output last week declined 2.4% and was 1.8% less than the previous year. The September US and Canada total hog and pig (.2%) and breeding (3.7%) inventories were less than last year. The breeding herd was the smallest for the date since 2004. Breeding herd reductions should cause pork output to track below the prior year levels this winter. Ham prices typically move upward soon due to holiday season demand. Last year the ham market rose 10% during the next 2 weeks. September 30th ham stocks were 1% less than 2007.

Poultry:
Chicken production cutback plans continue to intensify as the 6 week moving average for broiler egg sets is now 7.3% less than the previous year and the lowest level for the date since 2002. Chicken production this winter could trend close to 5% below prior year levels. This factor and seasonal upward pressure may lead to significant chicken breast market increases. The last time broiler egg sets trended below the prior year level during the fall (2006) the boneless skinless chicken breast market rallied 21% higher from December 1 through the end of January. The wing markets are firm.

Dairy:
September dairy cow slaughter was 12% greater than last year. Recent dairy cow slaughter gains have slowed but an announced herd retirement program should bring a boost to dairy cow slaughter next month. Reductions in the dairy cow herd may be bullish for dairy prices as 2009 progresses. The current CME cheese markets are relatively weak but recent history indicates that notable additional declines are not likely from here. The butter market typically trends downward in November.

Produce:
Tomato prices are beginning to trend upward as Florida shipments remain well below a year ago and California production is expected to decline in the coming weeks. The Florida tomato harvest could be especially limited as the fall progresses due to earlier crop challenges. Thus additional tomato market increases may be impending. Lettuce demand has reported to have softened some due to the surge in market prices earlier this month. The main lettuce harvest area will shift again in a few weeks which could cause relatively inflated lettuce prices to persist.

*Information sources include: UniPro Foodservice Website