This week’s Legacy Market News Report features important information regarding the baking industry. Here are some important points:
BUTTER: Oceania fat prices shifted lower after the last GDT auction while EU and US prices have been firming. Weak EU milk production and good seasonal demand is supporting butter prices in the region. The USDA issued a solicitation for 13.3 mil. lbs. of butter for Q3 deliv- ery. This is part of the $90 million worth of butter the USDA told us they would buy this year and wasn’t a surprise (I had them plugged in for 14 mil. lbs.). I’m still bullish on CME butter.
EGGS: Wholesale prices for cartoned shell eggs are steady at best for the week with most marketers having more than adequate supplies for current needs. Offerings remain moderate but end buyer interest remains limited. Demand for shell eggs improves slightly over the past week as increased retail promotional activity provided consumers with some incentive to purchase beyond an “as needed” basis as they have been largely doing for the past few weeks. Recent weeks have seen some of the most active retail promotional activity for cage-free eggs and remains true again this week.
WHEAT: Futures markets are lower on the week driven by sell-off in the stock market and USDA report showing sufficient ending stocks for all wheat classes. Corn and soybean planting is ahead of pace, and Midwest states received good rain last weekend. Winter wheat crop conditions continue to improve with more moisture and harvest only three to four weeks away.
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