Oils & Grain:
Major grain exporting region former Soviet Union’s wheat harvest is projected to decline 27% from the previous year.  Wheat prices are firming.  

Seafood:
The Newfoundland snow crab fishing season is winding down.  Currently 92% of the quota has been landed.  The snow crab leg markets continue to trend upward.  Snow crab leg prices could steady soon.  June US Gulf of Mexico shrimp landings were 47% less than the previous year and by far the smallest in the last five years.  Shrimp prices could drift downward in the coming weeks but should remain above 2009 levels.  

Beef/Lamb:
The July 1^st US cattle on feed inventory was 3.3% larger than last year.  June cattle placements into feedlots were 17% more than the 2009 deflated level.  The August near slaughter ready cattle inventory is estimated to be 7% less than the three year average for the date.  Beef output is forecasted to continue to trend below the prior year levels through the summer.  The beef markets in general remain resilient.  Beef demand is anticipated to fade during the next week or two which could pressure beef prices modestly downward.  Still, most beef markets should remain above 2009 levels. 

Pork:
Pork production last week declined 2.2% and was 2.9% less than the same week a year ago.  Hog supplies are extremely limited this week which has packers slowing output. The seasonal expansion in hog supplies is likely to begin in the coming weeks which should bring a boost to pork production. June 30th porl belly stocks were 54% smaller than last year. Belly prices are inflated but should move lower once pork output rebounds. June 30th pork ham (3%), rib (25%), and trimming (49%) stocks were all less than 2009.

Poultry:
The June broiler type chick hatch was 2% larger than a year ago indicating that chicken production should continue to trend well above 2009 levels in the coming weeks.  June chicken output is estimated to have been 2% larger than last year.  Pullet placements during June were 6% larger than the prior year suggesting growth in the broiler hatchery flock later this year.  By December, the broiler hatchery flock is projected to climb above 2009 which could be bullish for chicken production.  The chicken wing markets are fairly steady.  Typically, chicken wing prices remain stable during the next three weeks or so before demand improves for the football season.  In 2008, the chicken wing market rose 10% during September.  

Dairy:
June US butter holdings were 25% less than the previous year and the smallest for the month since 2005.  The butter market remains firm at the existing inflated levels.  The trade is concerned that once more milk starts moving into class I (fluid) output for the school season that butter output may be slighted and the butter market may react upward.  That being said, the butter market has not traded appreciably above the existing levels in nearly six years which suggests that the upside risk in the butter market is nominal.  The cheese markets may be in the process of forming a top. 

Produce:
Lettuce supplies are slowly improving which is influencing the lettuce markets lower.  Lettuce shipments may be fairly adequate during the next few weeks which could cause prices to remain near the existing levels.  Tomato supplies in the US are improving especially in the west.  History suggests that lower tomato prices may be pending.  Avocado supplies are likely to tighten in the coming weeks which could drive the market upward.  Usually, the avocado market climbs $5 a case during August.  The 2010 fall potato harvest is projected to be 3% smaller than 2009. 

*information sources include: UniPro Foodservice Website