This week’s Legacy Market News Update features important baking information for all operations! Here are some key points to remember:
EGGS: Wholesale prices for cartoned shell eggs weakened as the trading week commenced and declined as the week drew to a close. Despite manageable offerings, supplies are moderate to heavy which is placing a damper on demand. Consumer demand for conventional shell eggs continued to erode as the market moved into the end of the month and average ad prices have been offering little purchase incentive.
WHEAT: Corn has been doing most of the heavy lifting as both old crop and new crop made new contract highs, further supporting wheat as feed lots continue to consume wheat over corn. Export demand has not slowed down; however, other heavy wheat exporters such as the European Union and Russia have become more competitive in their exports. Spring wheat is 49% planted versus the five-year average of 32%, and winter wheat is currently 27% headed versus the 34% average.
BUTTER: Butter prices were lower across all the major exporters this week with GDT taking the biggest hit. I’ve been bearish on Oceania/EU prices for a while. Global butter demand is more price sensitive than other dairy commodities, and without a supply problem, the Oceania price was too high to absorb available supply. The CME price fell this week but I see a bullish story as we move through the year. The EU market is still in a stalemate with buyers waiting for lower prices.
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