Global Market report

California Dairy reportMarket

report - eGGs

flour faCts

Jbs usa Weekly

CoMMoDity reCap

proDuCe Market upDate

Cheese & butter

Market upDate

Market News

Click on the link below to view updates:

oil Market WatCh

aluMinuM foil Market

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Market upDate

                             Egg  Market               Week  of  November  4,  2013    

 

 

Retail  demand  fairly  good  to  good.    Supplies  of  extra  large  &  large  close  to  tight.    Market  full  steady  to  firm.  

 

The  regional  egg  markets  are  as  follows:    

      Northeast                 Midwest                    Southeast            South  Central  

   Lg                    1.38                                            1.37                               1.40                                  1.46  

   Md                1.20                                          1.18                                   1.18                                  1.19  

 

Source:    Esbenshade,  Inc.  

 

The opinions expressed here are an interpretation of the current commodity markets. They are not recommendations or future guarantees of performance in specific commodity markets. Trinidad

Benham is not responsible for any damage or losses as a result of this information. November 1, 2013

October 2013 Bean and Rice Market Update

BEAN MARKET UPDATE:

As we begin November we have finally completed this year’s edible bean harvest. It was drawn out and delayed,

but fortunately real quality concerns are limited to a few classes-mainly great northerns and dark red kidneys.

Pintos—Mexico has begun their harvest and early indications are good yields, limiting their reliance on US origin

pintos. The growers are content to hold the majority of this year’s crop, so there is not extensive pressure on either

side of the market. The pinto market is quiet with limited activity.

Great Northerns—market continues to be extremely firm, without any extra available inventory to fill the demand,

both domestically and internationally. China’s white bean crop is lower as well due to excessive rain and limited

pod fill. Argentina will need to increase acres of white beans with their plantings in February, however seed avail-

ability is already a concern. Limited downside persists in white beans.

Black beans—the market is firm with limited supplies. World market values on black beans remain very strong as

the market waits for Chinese values. Inventory is in tight hands.

Light Red Kidney, Dark Red Kidney—with inventories picked over and little carryover available, these markets are

very firm with limited activity. Most available supplies have been committed for the marketing year. Dark Red

Kidneys are not available from North America as all harvested supplies have been committed. The market is wait-

ing for Chinese supplies, to no avail.

Cranberry bean harvest is complete. All available inventory for this year’s harvest has been spoken for, leaving

little carry over until next harvest. The market is extremely firm with limited supply.

California harvest is nearly complete. A limited supply of both baby limas and large limas persists, with fewer

acres and the demand for any white bean. Values are significantly higher as a result. US acreage is down 31%,

with only 6,700 acres planted in 2013 vs 9,700 acres in 2012. This is such a niche item that a decrease of x %

causes extreme volatility in the price. There was limited carry over inventory, and with only 1 crop of limas in the

US each year the price has increased accordingly. California acres continue to be lost to trees (orchards) every

year, and even with values where they are today, won’t incent a lot of acres to be planted in the spring. The market

needs to grow about 10,000 acres each year to match supply to demand/consumption, so the market will need a

large increase next spring, fighting against trees for acres.

RICE MARKET UPDATE:

Prices remain steady as harvest nears completion. Early harvest yields and quality are good. The market is bal-

anced with limited additional demand matched up with supply. World markets remain quiet as ample stocks re-

main available and new crop prospects abroad continue to improve. Prices for milled rice and patty rice are still

flat, steady, and unchanged with the lack of new tenders on the horizon.

Cash prices move higher on holiday demand Madison, WI -- Strong export demand is getting a boost from domestic demand driven by the upcoming holidays. As a result cash prices have continued to move higher.

My expectations are unchanged from the past several weeks: there will be additional price increases. Numerous end users stood around waiting for the fourth quarter swoon in prices. It happens almost every year.

Now cupboards are bare and there is some scrambling. It could get a little crazy because there are still a few folks waiting for prices to correct lower. I think waiting is a mistake. I think a lot of folks are placing orders this afternoon ahead of the increased weekly average created this week.

Why? Because this solid growth in demand is coming in the face of slowing growth in the milk supply. This slower growth is a short-term phenomenon, but it will last long enough to throw a wrench into holiday supplies and buying. Yes, milk production is increasing seasonally. Yes, milk production is above one year. However, the YoY isn’t as large as it was this summer. Why? The biggest culprit is feed quality. The transition from 2012 feed supplies to 2013 feed supplies has been problematic. There are a couple of feed quality issues: (1) alfalfa hay and (2) corn silage in various regions of dairy country.

For example: Too much rain messed up hay quality for a good share of this past summer in the Northeast and to a lesser degree in other parts of the country. Upper Midwestern producers have been forced to start feeding corn harvested for silage this year before it is silage (before it is fully fermented) because they ran out of the drought-shorten 2012 silage supply.

It all adds up to a few less pounds of milk per cow per day as producers work thru these transitions. But a few less pounds from each of several millions cows becomes a lot of missing milk.

Sep milk production was less than one percent (0.96%) greater than one year ago, according to the just-released Milk Production report. This is a huge correction. Output was up 2.4% in Aug; 1.3% in Jul and 1.5% in Jun.

The counting-of-the-cows resumed in Sep and NASS found just 9.207 million head; down from the 9.225 million head in Feb, the last time cows were counted. The Sep number is just 12,000 greater than one year ago. In this report, USDA estimated cow numbers at 9.242 million in Jul and 9.232 million in Aug. So, cow numbers are apparently declining.

Slaughter numbers slowed during Sep, but one year ago cow numbers fell by 22,000. Call it the “Sep effect.” I don’t have a better explanation at the moment.

USDA said, production per cow totaled just 1,720 lbs during Sep, up 0.8% (14 lbs) vs one year ago. Output per cow was up 2.2% in Aug; up 1.1% in Jul and up 1.4% in Jun. What triggered the reversal? Apparently the feed quality issues cited above.

The milk price continued to press higher during Oct and feed prices lower; thus widening the income-over-feed-costs to $10.57. An IOFC of more than $7 or so typically points toward an increase in milk production. After hovering between $6 and $7 for the first seven months of the year, IOFC hit $7.86 in Aug and $9.43 in Sep.

A look at futures prices for milk and feed foresees an IOFC of more than $9 each and every month in 2014. This should mean a

Vol. 21, No. 44

Trends, analyses & forecasts by Jerry Dryer

Copyright 2013 by Dairy & Food Market Analyst Inc. All rights reserved. Quotation with credit permitted. Reproduction and/or redistribution prohibited by USA & international law.

01 Nov 2013

Current Cash Prices At-A-Glance...

Cash Cheese Block......................$190.25 (+2.75) Barrel.....................$187.00 (+5.00) Cash Butter AA……....................$153.25 (+5.75) Cash Nonfat Dry Milk Extra Grade...............$185.00 (NC) Grade A…………....$191.00 (+1.00) FMMO Class I Base Price Nov...........................$20.20 (+1.00) CA Class 1 (Nov) Northern..……..........$21.74 (+0.95) Southern..…...…..…$22.01 (+0.95) Class II Price Oct...........................$20.56 (+0.78) Class III Price Oct...........................$18.22 (+0.08) California 4b Sep...........................$16.65 (+0.33) Class IV Price Oct……....................$20.17 (+0.74) California 4a Sep...........................$19.47 (+0.77)

* * * * * * * * * * * * * * (Numbers in parentheses are changes from previous week/month.)

Serving the Dairy Business for 21 Years

Page 2 of 3 01 Nov 2013

Nothing in this report shall be deemed to constitute an offer or solicitation for an offer for the purchase or sale of any commodity or security. Dairy & Food Market Analyst Inc. uses sources that it believes to be reliable, but it cannot warrant the accuracy of any of the data or forecasts included in this report. Copyright 2013 by Dairy & Food Market Analyst Inc. All rights reserved. Quotation with credit permitted. Reproduction or redistribution prohibited by international law. Individual, group and corporate subscription rates are available. Contact Jerry Dryer at (561) 445.1074 or jdryer@dairymarketanalyst.com.

lot more milk, but not so fast. See the feed quality comments above.

There will; however, be more milk next year here in the USA and abroad. Milk cow numbers have started to increase in Europe; something that hasn’t happened in nearly two decades. This is in response to sharply higher milk prices and the pending end of production quotas. Milk production in New Zealand will be up 3% to 5% for the year ending next May, according to various forecasts. The decline in Australian milk production is slowing. Milk production was down 3.4% in Sep, but was down 5.8% Jan thru Sep.

Butter and cheese inventories, as expected, were pulled down more than usual during Sep, yet remained larger than usual at the end of the month.

Butter stocks were trimmed by 30.7 million lbs during Sep vs the five-year average reduction of 23.8 million lbs. At the end of the month; however, inventories still totaled 233 million lbs vs the five-year average for 30 Sep of 187 million lbs.

Following a record-shattering reduction of 33.6 million lbs during Aug, American cheese stocks were trimmed by just 7.1 million lbs during Sep. This modest reduction; however, was typical. The five-year average is 6.6 million lbs.

American cheese stocks were a bit heavy at the end of the month: 661 million lbs against the five-year average of 613 million lbs. Keep in mind: all cheese data are skewed because two years ago, USDA included additional cooler capacity in the survey base. Therefore, the 661-million-lb

figure isn’t as far out of line as it might first appear.

Other (than American) cheese stocks were cut by 19.4 million lbs vs a five-year average of 12.8 million lbs. Stocks on 30 Sep totaled 381 million lbs vs a five-year average of 330 million lbs. Acknowledging the skew, stocks were only modestly heavier this year.

These data for butter and cheese are, in my opinion, neutral to bullish for the market. Some growth in end-of-the-month stocks is needed to accommodate a growing marketplace; increased usage here and in international trade. Note the stocks-to-usage trend for American cheese in the adjoining chart.

Foodservice sales were relatively strong thru the summer and fast-food sales downright robust. Across all restaurant types, sales totaled $44.9 billion in Sep, up 3.1%,

according to Census Bureau data posted this week.

In the cheese-friendly, fast food segment, sales during Aug (the latest data available for individual segments) totaled $21.3 billion; up 14.5%. Fast-food sales have been up double digits (11.5% to 14.6%) each month this year.

The National Restaurant Association Performance Index, on the other hand, has been slumping lower all summer. It includes a “Current Situation Index” and an “Expectations (what will sales be like six months from now) Index”, each based on a survey of restaurant operators. I’ve never found either Index a

Block Barrels Butter Nonfat Whey

10/26/13 1.7980 1.8000 1.5239 1.8457 0.5604

1 Year Ago 2.0715 2.0277 1.8946 1.4859 0.6299

52-Week Low 1.5899 1.5903 1.3666 1.4918 0.5538

52-Week High 2.0783 2.0649 1.9019 1.8457 0.6673

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$0.4000

$0.6000

$0.8000

$1.0000

$1.2000

$1.4000

$1.6000

$1.8000

$2.0000

$2.2000

AMS/NASS Price Analysis

Equivalent Prices, computed pursuant to 7 CFR, Section 1000.54

40.042.044.046.048.050.052.054.056.0

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Days in storage

American cheese: stocks to usage(Thousands of lbs) (30 Sep)

Stocks Stks vs Use

Page 3 of 3 01 Nov 2013

Prices and changes in ¢/lb. Numbers in parentheses are changes from previous week. Changes reflect revised prices from previous week.

CME Futures Settling Prices (with changes from previous week)

good measure. I’m sticking with the hard data out of Census.

Starbuck’s reported 8% comparable store sales growth in the USA/Americas and Asia/Pacific, but just 2% growth in the ROW for the company’s 4Q which ended 29 Sep. For the full fiscal year, USA comp sales were up 8%; the Americas, up 7%; China/Asia, up 9% and the ROW, flat. Starbuck’s comps across all regions were up 7%, driven in part by a 5% increase in traffic. Burger King same-store sales in the USA and Canada were down 0.3% during 3Q13; up 2.4% in Europe and MENA; up 2.1% in Latin America and up 3.7% in the Asia Pacific region.

Warrnambool Cheese & Butter (WCB) picked up more suitors this week. Kirin, a Japanese-based customer of WCB, paid AU$9.25/share for a 9.9% holding in WCB via its Australian subsidiary, Lion which buys cheese from WCB. Fonterra has paid AU$4.95/share to acquire a 6% slice of Bega which owns a chunk of WCB. Bega, Murray Goulburn and Lion now collectively own about 45% of WCB, according to media reports. Last week, Saputo made an offer to buy WCB for AU$8.00/share. “Wal-Mart estimates it takes in about 18% of total U.S. outlays on food stamps,” according to a story in the Wall Street Journal. Total government expenditures for the fiscal year ending 30 Sep were $80 billion; 18% equals about $14.4 billion in revenue for Wal-Mart. Kraft noted several months ago that nearly 20% of its revenue is generated by consumer purchases using food stamps. DAIRY DATA Calendar thru 15 Nov 2013:

NASS Dairy Products, Mon, Nov 04; Rice Dairy First Monday, Mon, Nov 04; GlobalDairyTrade auction, Tue, Nov 05; OCE World Agricultural Supply & Demand Estimates, Fri, Nov 08; FAS Dairy Exports/Imports, Mon, Nov 11; AMS National Dairy Products Sales Report, Wed, Nov 13 and ERS Livestock, Dairy & Poultry Outlook, Fri, Nov 15.

Kind regards,

Jerry JDryer@DairyMarketAnalyst.com (561) 445.1074

CME Cash Chge From CME Wkly Chge From NASS Wkly Chge From

Settlement Last Wk Ave Last Wk Ave Last Wk

11/01/13 10/25/13 11/01/13 10/25/13 10/26/13

BLOCKS $1.9025 $0.0275 $1.8835 $0.0210 $1.7980 $0.0091

BARRELS $1.8700 $0.0500 $1.8360 $0.0415 $1.8000 $0.0308

BUTTER $1.5325 $0.0575 $1.4965 $0.0245 $1.5239 ($0.0438)

NFDM Ex Gr $1.8500 $0.0000 $1.8500 $0.0240 *** ***

NFDM Gr A $1.9100 $0.0100 $1.9040 $0.0345 *** ***

NFDM NASS *** *** *** *** $1.8457 $0.0025

Whey NASS *** *** *** *** $0.5604 ($0.0109)

CWAP NFDM *** *** *** *** $1.8219 ($0.0101)

WEEKLY CASH PRICES & CHANGES

PRELIMINARY 

Week ending11/01/13 Settle Chge O/I Settle Chge O/I Settle Chge O/I

Oct-13 18.22 1.803 57.310Nov-13 18.84 0.11 4,477 1.876 0.018 1,470 57.000 (1.000) 259Dec-13 18.27 0.33 3,925 1.814 0.037 1,502 57.900 (0.850) 273

Jan-14 17.31 0.22 2,038 1.722 0.030 874 57.500 (0.325) 241Feb-14 16.90 0.10 1,635 1.681 0.019 674 57.000 (0.350) 229Mar-14 16.75 0.05 1,465 1.666 0.011 705 56.000 (0.850) 272

Apr-14 16.68 0.00 1,258 1.663 0.008 599 55.500 (0.325) 171May-14 16.69 0.07 1,304 1.665 0.005 577 54.500 (0.050) 178Jun-14 16.85 (0.03) 1,115 1.685 0.005 541 53.900 (0.125) 219

Jul-14 17.08 0.02 615 1.715 (0.008) 252 53.000 0.000 107Aug-14 17.08 (0.02) 627 1.726 0.000 261 52.500 0.000 78Sep-14 17.14 (0.03) 659 1.735 (0.005) 262 51.000 1.000 49

Oct-14 17.08 (0.03) 520 1.730 0.000 248 51.500 1.500 27Nov-14 17.03 0.01 465 1.731 0.001 253 50.500 0.750 46Dec-14 16.96 (0.01) 439 1.725 0.000 228 49.750 0.750 55

Jan-15 16.25 0.00 1 1.800 (0.020) 0 42.000 0.000 0Feb-15 15.63 0.00 0 1.830 0.000 0 42.000 0.000 0Mar-15 15.55 0.00 0 1.830 0.000 0 42.000 0.000 0

Apr-15 15.41 0.00 0 1.830 0.000 0 42.000 0.000 0May-15 15.36 0.00 0 1.830 0.000 0 42.000 0.000 0Jun-15 15.31 0.00 0 1.830 0.000 0 42.000 0.000 0

Jul-15 15.26 0.00 0 1.894 0.000 0 42.000 0.000 0Aug-15 15.21 0.00 0 1.899 0.000 0 42.000 0.000 0Sep-15 15.16 0.00 0 1.904 0.000 0 42.000 0.000 0

Ttl O/I 20,543 8,446 2,204

Class III Milk Cheese Dry Whey

Weekly Market Highlights

Wheat futures prices are lower this week, but for many flour grades this break has been offset by higher basis

premium prices.

Markets continue to digest new information reported by the USDA, but the information is not yet current and is

not expected to be current for about another week.

Strong import sales and world market price increases have the potential to push prices higher, but very good

prospects for crops in areas like Canada, India and the EU may counter that effect.

Probably the one key component, producer selling, is limited. This can be expected to continue if producers are

not happy with the posted price.

Facts on Flour Got Flour?

When we talk “flour,” we are talking about wheat flour. Because wheat is the most commonly distributed

cereal grain in the world, a reference to flour is generally a reference to wheat flour.

And just as flour is not “just flour,” wheat is not “just wheat.” Wheat can be classified by three major

categories: growing season (winter, spring), kernel hardness (hard, soft) and bran color (red, white). These

categories have a significant impact on the functionality of the finished flour.

Over the next few weeks, we will be discussing each of these categories more in depth.

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Bu

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Futures & Basis Markets

KC Future

Spring 15% Basis (from MarketFax No.1Northern Spring)

Mpls Future

Winter 13% Basis (from MarketFax No.1hard winter)

Flour pricing consists of a combination of Wheat futures prices and Basis Premium prices per bushel. Information contained on this chart closely resembles Gold Medal All Trumps, Mpls. Future + 15% Basis, and Harvest King, KC Future + 13% Basis. This chart does not reflect changes in millfeed values.

This Chart is meant to indicate Market Direction Only.

OCTOBER 31, 2013

JBS USA, LLC

1770 Promontory Circle

Greeley, CO 80634

Toll Free: 1-877-540-0872

Copyright © 2013 JBS USA, LLC. All rights reserved. This publication is provided as a privilege. Forwarding without permission may result in the loss of that privilege.

Commodity Fri Net Fri Pr Yr

Futures Prices 1-Nov Change 25-Oct 2-Nov

GSCI Dec -2.0% 613.000 -12.50 625.500 628.50

Crude Dec -3.3% 94.610 -3.24 97.850 84.86

Nat Gas Dec -7.8% 3.513 -0.299 3.812 3.55

Cattle Dec -0.7% 132.075 -0.900 132.975 125.43

Hogs Dec -2.3% 88.350 -2.075 90.425 77.75

Corn Dec -2.9% 4.273 -0.128 4.400 7.40

Beans Nov -2.6% 12.660 -0.340 13.000 15.27

Wheat Dec -3.3% 6.678 -0.230 6.908 8.65 Cattle and Beef (Week over week comparison)

Texas Live Steers 0.00 ###### 132.25 125.82

Nebraska Dressed 0.00 ###### 208.00 196.46

CH Cutout 204.56 4.47 200.09 192.74

SL Cutout 188.99 4.86 184.13 175.54

CH-SL Sprd 15.57 -0.39 15.96 17.20

C112a Ribeye Heavy (3) 700.05 5.75 694.30 693.21

C114a Chuck, Clod Trmd (3) 226.28 7.02 219.26 208.56

C116a Chuck, Roll (3) 296.93 14.35 282.58 253.90

C120 Brisket 200.68 1.39 199.29 207.06

C167a Knuckle, Peeled 239.83 5.56 234.27 236.18

C168 Round, Top (3) 232.55 8.86 223.69 221.61

C171b Round, Flat (3) 252.05 7.31 244.74 249.03

C171c Round, Eye (3) 263.91 7.46 256.45 262.01

C180 Strip Loin 0x1 (3) 496.67 3.08 493.59 504.65

C184 Top Butt Hvy (3) 287.88 -10.26 298.14 315.61

C189a Tender, Pld Hvy (4) 1144.27 68.92 1075.35 1083.01

50% Chem Lean Trimmings 114.46 8.93 105.53 66.49

90% Chem Lean Trimmings 192.09 -0.87 192.96 203.99

F.I. Slaughter 624 6 618 645

Cattle Dress Wgt 802 2 800 794

Hogs and Pork (Fri over fri comparison)

W.Cornbelt Lean Avg 84.55 -0.08 84.63 80.51

CME Hog Index 89.17 -2.23 91.40 83.52

Pork Cutout 94.05 -0.28 94.33 85.56

1/4" Trim, VAC 116.16 0.90 115.26 112.00

17/20 Hams, selected 93.06 0.98 92.08 82.00

23/27 Hams, selected 94.85 5.61 89.24 79.00

14/16 Belly 145.57 1.65 143.92 135.00

42% Trim, combo 41.30 -8.06 49.36 40.00

72% Trim, combo 80.86 -3.43 84.29 68.57

F.I. Slaughter 2,272 10 2,262 2,359

Lean Dress Wgt 208 2 206 205

This Last Last

Energy Week Week Year

Nat Gas 6-mth Strip 3.576 -0.280 3.856 3.652

Storage Inventory

Crude Oil -Mln barrels 383.9 4.087 379.8 374.8

Gasoline - Mln barrels 213.8 -1.713 215.5 202.4

Nat Gas EIA - Tcf 3.779 0.038 3.741 3.929

Beef Production

517.4

382.7

417.3

523.4

497.7

360.0

380.0

400.0

420.0

440.0

460.0

480.0

500.0

520.0

540.0

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3/16

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4/27

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3

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8/31

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6

11/9

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'11 '12 '13 '13 Est '08-'12 Avg F.I. Cattle Dressed Weights

775.0

805.0805.0

778.0

804.0

740.0

750.0

760.0

770.0

780.0

790.0

800.0

810.0

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

4/13

4/27

5/11

5/25 6/

8

6/22 7/

6

7/20 8/

3

8/17

8/31

9/14

9/28

10/1

2

10/2

6

11/9

11/2

3

12/7

12/2

1

Poun

d

'11 '12 '13 '13 Est '08-'12 Avg Pork Production

352.2

496.5

362.2

477.6

320.0

340.0

360.0

380.0

400.0

420.0

440.0

460.0

480.0

500.0

520.0

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

4/13

4/27

5/11

5/25 6/

8

6/22 7/

6

7/20 8/

3

8/17

8/31

9/14

9/28

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2

10/2

6

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3

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Mil

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ou

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'11 '12 '13 '13 Est '08-'12 Avg F.I. Dressed Hog Weights

210.0

201.0

203.0

209.0

196.0

198.0

200.0

202.0

204.0

206.0

208.0

210.0

212.0

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

4/13

4/27

5/11

5/25 6/

8

6/22 7/

6

7/20 8/

3

8/17

8/31

9/14

9/28

10/1

2

10/2

6

11/9

11/2

3

12/7

12/2

1

Poun

d

'11 '12 '13 '13 Est '08-'12 Avg

Week Ended: Friday, Nov 01, 2013 Prepared By Risk Management WEEKLY COMMODITY RECAP

JBS USA, LLC

1770 Promontory Circle

Greeley, CO 80634

Toll Free: 1-877-540-0872

Copyright © 2013 JBS USA, LLC. All rights reserved. This publication is provided as a privilege. Forwarding without permission may result in the loss of that privilege.

F.I. Cattle Slaughter

659.8

476.6

519.4

659.7

620.2

400.0

450.0

500.0

550.0

600.0

650.0

700.0

750.0

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

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4/27

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8

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8/31

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Tho

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nd

He

ad

'11 '12 '13 '13 Est '08-'12 Avg

F.I. Beef Production

517.4

382.7

417.3

523.4

497.7

360.0

380.0

400.0

420.0

440.0

460.0

480.0

500.0

520.0

540.0

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

4/13

4/27

5/11

5/25 6/

8

6/22 7/

6

7/20 8/

3

8/17

8/31

9/14

9/28

10/1

2

10/2

6

11/9

11/2

3

12/7

12/2

1

Mil

lio

n P

ou

nd

'11 '12 '13 '13 Est '08-'12 Avg

Choice Boxed Beef Cutout Value

198.51

177.79

182.51

210.47

204.56

170.39

120.00

130.00

140.00

150.00

160.00

170.00

180.00

190.00

200.00

210.00

220.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

pe

r C

WT

'08-'12 Range '11 '12 '13 '08-'12 Avg

Select Boxed Beef Cutout Value

194.56

170.97

195.27

176.31

188.99

166.88

120.00

130.00

140.00

150.00

160.00

170.00

180.00

190.00

200.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

pe

r C

WT

'08-'12 Range '11 '12 '13 '08-'12 Avg

Choice-Select Boxed Beef Cutout Spread

0.30

21.08

0.39

19.75

15.57

1.42

13.77

0.00

5.00

10.00

15.00

20.00

25.00

1/4

1/18 2/

1

2/15 3/

1

3/15

3/29

4/12

4/26

5/10

5/24 6/

7

6/21 7/

5

7/19 8/

2

8/16

8/30

9/13

9/27

10/1

1

10/2

5

11/8

11/2

2

12/6

12/2

0

USD

pe

r C

WT

'08-'12 Range '11 '12 '13 '08-'12 Avg

Blended 55% Choice Cutout

196.73

174.85

181.49

202.21

197.55

168.81

120.00

130.00

140.00

150.00

160.00

170.00

180.00

190.00

200.00

210.00

1/4

1/18 2/

1

2/15 3/

1

3/15

3/29

4/12

4/26

5/10

5/24 6/

7

6/21 7/

5

7/19 8/

2

8/16

8/30

9/13

9/27

10/1

1

10/2

5

11/8

11/2

2

12/6

12/2

0

USD

pe

r C

WT

'08-'12 Range '11 '12 '13 '08-'12 Avg

Cattle Summary

JBS USA, LLC

1770 Promontory Circle

Greeley, CO 80634

Toll Free: 1-877-540-0872

Copyright © 2013 JBS USA, LLC. All rights reserved. This publication is provided as a privilege. Forwarding without permission may result in the loss of that privilege.

C112A 3H Ribeye

529.62

781.59

565.76

721.71

694.30672.17

350.00

450.00

550.00

650.00

750.00

850.00

950.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg

C114A 3 Shoulder Clod

186.68

226.18

193.61

226.28

190.14

140.00

160.00

180.00

200.00

220.00

240.00

260.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg C116A Chuck Roll

193.79

319.24

217.93

296.93

177.77

233.37

140.00

190.00

240.00

290.00

340.00

390.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg

C168 ¾” Top Inside Round

237.82

194.32

222.44

185.19

212.65

193.50

120.00

140.00

160.00

180.00

200.00

220.00

240.00

260.00

280.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg C120 Brisket

220.94

180.97

187.56

208.79

200.68

179.06

130.00

150.00

170.00

190.00

210.00

230.00

250.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg

C180 3 0x1 Strip

475.09

791.57

460.26

823.48

493.59

595.43

300.00

400.00

500.00

600.00

700.00

800.00

900.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg C184 3 Top Butt

287.03

363.92365.60

298.14

299.23

150.00

200.00

250.00

300.00

350.00

400.00

450.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg

C189A 4 Tender

828.64

1,227.80

864.01

1,075.35

730.68

1,022.32

600.00

700.00

800.00

900.00

1,000.00

1,100.00

1,200.00

1,300.00

1,400.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg

Beef Prices

JBS USA, LLC

1770 Promontory Circle

Greeley, CO 80634

Toll Free: 1-877-540-0872

Copyright © 2013 JBS USA, LLC. All rights reserved. This publication is provided as a privilege. Forwarding without permission may result in the loss of that privilege.

TX/OK Choice Fed Steers

118.94

132.25

132.00129.89

113.00

104.00

124.52

97.54

106.13

90

95

100

105

110

115

120

125

130

135

140

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

/ C

WT

2013 2012 2011 '08-'12 Avg CME '13 Futures CME '14 Futures

Choice Grade

66.09

58.02

65.82

60.55

62.14

57.00

59.00

61.00

63.00

65.00

67.00

69.00

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

4/13

4/27

5/11

5/25 6/

8

6/22 7/

6

7/20 8/

3

8/17

8/31

9/14

9/28

10/1

2

10/2

6

11/9

11/2

3

12/7

12/2

1

Perc

ent

'11 '12 '13 '13 Est '08-'12 Avg F.I. Cattle Dressed Weights

775.0

805.0805.0

778.0

804.0

740.0

750.0

760.0

770.0

780.0

790.0

800.0

810.0

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

4/13

4/27

5/11

5/25 6/

8

6/22 7/

6

7/20 8/

3

8/17

8/31

9/14

9/28

10/1

2

10/2

6

11/9

11/2

3

12/7

12/2

1

Poun

d

'11 '12 '13 '13 Est '08-'12 Avg

F.I. Cow & Bull Slaughter

160,500

98,600

151,000

106,000

130,200

80,000

90,000

100,000

110,000

120,000

130,000

140,000

150,000

160,000

170,000

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

4/13

4/27

5/11

5/25 6/

8

6/22 7/

6

7/20 8/

3

8/17

8/31

9/14

9/28

10/1

2

10/2

6

11/9

11/2

3

12/7

12/2

1

Hea

d

'11 '12 '13 '13 Est '08-'12 Avg

50% Chemical Lean Trimmings

101.30

43.19

64.45

110.28

105.53

89.16

65.70

30.00

50.00

70.00

90.00

110.00

130.00

150.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg

90% Chemical Lean Trimmings

201.23

231.20

219.49

192.96182.57

120.00

140.00

160.00

180.00

200.00

220.00

240.00

260.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg

Beef Stats

JBS USA, LLC

1770 Promontory Circle

Greeley, CO 80634

Toll Free: 1-877-540-0872

Copyright © 2013 JBS USA, LLC. All rights reserved. This publication is provided as a privilege. Forwarding without permission may result in the loss of that privilege.

Cattle On Feed

11,861

10,647

11,193

9,876

10,144

9,000

9,500

10,000

10,500

11,000

11,500

12,000

12,500Ja

n

Feb

Mar

Apr

May Jun Jul

Aug

Sep

Oct

Nov Dec Ytd

Avg

Thou

sand

Hea

d

'11 '12 '13 '13 Est '08-'12 Avg

Cattle Marketings

2,017

1,598

1,638

2,000

1,695

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2,100

2,200

Jan

Feb

Mar

Apr

May Jun Jul

Aug

Sep

Oct

Nov Dec Ytd

Avg

Thou

sand

Hea

d

'11 '12 '13 '13 Est '08-'12 Avg

Cattle on Feed by State

State % of Yr Ago # of Hd

Colorado 87.0% 870

Iowa 94.9% 560

Kansas 89.7% 2,000

Nebraska 94.8% 2,210

Texas 91.8% 2,460

5 Area 91.7% 8,100

Oklahoma 85.1% 285

South Dakota 92.3% 180

Other 95.0% 417

National 92.3% 10,144

Cattle Placements

1,521

2,180

1,482

2,052

2,025

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

Jan

Feb

Mar

Apr

May Jun Jul

Aug

Sep

Oct

Nov Dec Ytd

Avg

Thou

sand

Hea

d

'11 '12 '13 '13 Est '08-'12 Avg Texas Cattle On Feed

2,940

2,620

2,720

2,430

2,460

2,300

2,400

2,500

2,600

2,700

2,800

2,900

3,000

3,100

Jan

Feb

Mar

Apr

May Jun Jul

Aug

Sep

Oct

Nov Dec Ytd

Avg

Thou

sand

Hea

d

'11 '12 '13 '13 Est '08-'12 Avg

Nebraska Cattle On Feed

2,570

2,230

2,480

2,080

2,210

1,800

1,900

2,000

2,100

2,200

2,300

2,400

2,500

2,600

2,700

Jan

Feb

Mar

Apr

May Jun Jul

Aug

Sep

Oct

Nov Dec Ytd

Avg

Thou

sand

Hea

d

'11 '12 '13 '13 Est '08-'12 Avg Colorado Cattle On Feed

1,150

930

1,010

830

870

750

800

850

900

950

1,000

1,050

1,100

1,150

1,200

Jan

Feb

Mar

Apr

May Jun Jul

Aug

Sep

Oct

Nov Dec Ytd

Avg

Thou

sand

Hea

d

'11 '12 '13 '13 Est '08-'12 Avg

Placements by State

Colorado 84.4%

Iowa 113.5%

Kansas 104.0%

Nebraska 110.6%

Texas 100.0%

5 Area 102.6%

Oklahoma 117.5%

South Dakota 86.0%

Other 76.5%

National 101.0%

Marketings by State Placements by State

Colorado 96.7%

Iowa 102.3%

Kansas 114.5%

Nebraska 105.4%

Texas 107.5%

5 Area 107.0%

Oklahoma 133.3%

South Dakota 82.1%

Other 84.6%

National 106.1%

USDA Cattle On Feed

JBS USA, LLC

1770 Promontory Circle

Greeley, CO 80634

Toll Free: 1-877-540-0872

Copyright © 2013 JBS USA, LLC. All rights reserved. This publication is provided as a privilege. Forwarding without permission may result in the loss of that privilege.

F.I. Hog Slaughter

1,745.0

2,427.5

1,783.6

2,289.8

1,600.0

1,700.0

1,800.0

1,900.0

2,000.0

2,100.0

2,200.0

2,300.0

2,400.0

2,500.0

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

4/13

4/27

5/11

5/25 6/

8

6/22 7/

6

7/20 8/

3

8/17

8/31

9/14

9/28

10/1

2

10/2

6

11/9

11/2

3

12/7

12/2

1

Tho

usa

nd

He

ad

'11 '12 '13 '13 Est '08-'12 Avg

F.I. Pork Production

352.2

496.5

362.2

477.6

320.0

340.0

360.0

380.0

400.0

420.0

440.0

460.0

480.0

500.0

520.0

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

4/13

4/27

5/11

5/25 6/

8

6/22 7/

6

7/20 8/

3

8/17

8/31

9/14

9/28

10/1

2

10/2

6

11/9

11/2

3

12/7

12/2

1

Mil

lio

n P

ou

nd

'11 '12 '13 '13 Est '08-'12 Avg

USDA Pork Cutout

98.38

77.00

99.34

88.30

60.00

70.00

80.00

90.00

100.00

110.00

120.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

pe

r C

WT

'08-'12 Range '11 '12 '13 '08-'12 Avg

Western Cornbelt Direct Hogs Carcass Base

72.3

100.0

84.6

101.3

63.9

70.7

104.4

63.9

82.6

55

65

75

85

95

105

115

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

/ C

WT

2013 2012 2011 '08-'12 Avg CME '14 Hi Lo CME '13 Hi Lo 40Lb Feeder Pigs

80.3

45.9

73.6

86.3

16.4

84.7

38.9

70.4

32.0

59.2

0

10

20

30

40

50

60

70

80

90

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

/CW

T

2013 2012 2011 '08-'12 Avg

F.I. Dressed Hog Weights

210.0

201.0

203.0

209.0

196.0

198.0

200.0

202.0

204.0

206.0

208.0

210.0

212.0

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

4/13

4/27

5/11

5/25 6/

8

6/22 7/

6

7/20 8/

3

8/17

8/31

9/14

9/28

10/1

2

10/2

6

11/9

11/2

3

12/7

12/2

1

Poun

d

'11 '12 '13 '13 Est '08-'12 Avg

Hog Summary

JBS USA, LLC

1770 Promontory Circle

Greeley, CO 80634

Toll Free: 1-877-540-0872

Copyright © 2013 JBS USA, LLC. All rights reserved. This publication is provided as a privilege. Forwarding without permission may result in the loss of that privilege.

Rib Composite

161.26

112.09

128.15 133.14

137.81

104.42

90.00

100.00

110.00

120.00

130.00

140.00

150.00

160.00

170.00

180.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg

Loin Composite

121.85

85.01

102.75

105.32

80.91

70.00

80.00

90.00

100.00

110.00

120.00

130.00

140.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg Ham Composite

54.64

78.13

81.4382.30

53.85

76.52

45.00

50.00

55.00

60.00

65.00

70.00

75.00

80.00

85.00

90.00

95.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg

Butt Composite

108.60

82.63

88.85

91.87

50.00

60.00

70.00

80.00

90.00

100.00

110.00

120.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg Picnic Composite

48.80

73.31

48.97

70.61

63.73

40.00

45.00

50.00

55.00

60.00

65.00

70.00

75.00

80.00

85.00

90.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg

Belly Composite

84.04

152.73

146.36

164.00

125.17

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

200.00

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

per

CW

T

'08-'12 Range '11 '12 '13 '08-'12 Avg 72% Lean Trim

67.62

49.67

54.00

47.32

82.50

118.00

70.86

53.24

80.56

30

40

50

60

70

80

90

100

110

120

130

1/1

1/15

1/29

2/12

2/26

3/11

3/25 4/

8

4/22 5/

6

5/20 6/

3

6/17 7/

1

7/15

7/29

8/12

8/26 9/

9

9/23

10/7

10/2

1

11/4

11/1

8

12/2

12/1

6

'13 '12 '11 '08-'12 Avg

42% Lean Trim

32.00

45.25

38.33

31.45

63.47

25.71

97.00

29.08

64.83

10

20

30

40

50

60

70

80

90

100

110

1/1

1/15

1/29

2/12

2/26

3/11

3/25 4/

8

4/22 5/

6

5/20 6/

3

6/17 7/

1

7/15

7/29

8/12

8/26 9/

9

9/23

10/7

10/2

1

11/4

11/1

8

12/2

12/1

6

'13 '12 '11 '08-'12 Avg

Pork Prices

JBS USA, LLC

1770 Promontory Circle

Greeley, CO 80634

Toll Free: 1-877-540-0872

Copyright © 2013 JBS USA, LLC. All rights reserved. This publication is provided as a privilege. Forwarding without permission may result in the loss of that privilege.

Egg Sets

201,551

178,114

203,696

185,861

193,374

170,000

175,000

180,000

185,000

190,000

195,000

200,000

205,000

210,000

215,000

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

4/13

4/27

5/11

5/25 6/

8

6/22 7/

6

7/20 8/

3

8/17

8/31

9/14

9/28

10/1

2

10/2

6

11/9

11/2

3

12/7

12/2

1

Thou

sand

Egg

'11 '12 '13 '13 Est '08-'12 Avg

Omaha #2 Yellow Corn

7.620

4.210

5.900

8.280

5.830

7.520

4.819

5.660

3.5

4.5

5.5

6.5

7.5

8.5

9.5

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

/ B

U

2013 2012 2011 '08-'12 Avg CBOT '13 CBOT '14 Chicks Placed

167,910

147,821

168,164

153,206

140,000

145,000

150,000

155,000

160,000

165,000

170,000

175,000

180,000

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

4/13

4/27

5/11

5/25 6/

8

6/22 7/

6

7/20 8/

3

8/17

8/31

9/14

9/28

10/1

2

10/2

6

11/9

11/2

3

12/7

12/2

1

Tho

usa

nd

He

ad

'11 '12 '13 '13 Est '08-'12 Avg

48% Soybean Meal

407.010

558.840

438.460

302.990

571.120

379.900

272.100

321.482

415.668

200

250

300

350

400

450

500

550

600

1/6

1/20 2/

3

2/17 3/

3

3/17

3/31

4/14

4/28

5/12

5/26 6/

9

6/23 7/

7

7/21 8/

4

8/18 9/

1

9/15

9/29

10/1

3

10/2

7

11/1

0

11/2

4

12/8

12/2

2

USD

/ T

on

2013 2012 2011 '08-'12 Avg CBOT '13 CBOT '14

Broiler Slaughter

160,847

115,385

130,573

163,183

158,820

100,000

110,000

120,000

130,000

140,000

150,000

160,000

170,000

180,000

1/5

1/19 2/

2

2/16 3/

2

3/16

3/30

4/13

4/27

5/11

5/25 6/

8

6/22 7/

6

7/20 8/

3

8/17

8/31

9/14

9/28

10/1

2

10/2

6

11/9

11/2

3

12/7

12/2

1

Thou

sand

Hea

d

'11 '12 '13 '13 Est '08-'12 Avg

12 City Whole Broiler Without Giblets

113.53

88.94

93.30

79.87

99.57

84.58

72.29

80.01

85.39

76.26

65

75

85

95

105

115

125

1/1

1/15

1/29

2/12

2/26

3/11

3/25 4/

8

4/22 5/

6

5/20 6/

3

6/17 7/

1

7/15

7/29

8/12

8/26 9/

9

9/23

10/7

10/2

1

11/4

11/1

8

12/2

12/1

6

'13 '12 '11 '08-'12 Avg

Other Indicators & Commodities

JBS USA, LLC

1770 Promontory Circle

Greeley, CO 80634

Toll Free: 1-877-540-0872

Copyright © 2013 JBS USA, LLC. All rights reserved. This publication is provided as a privilege. Forwarding without permission may result in the loss of that privilege.

Beef Cold Storage

517,852.0

424,930.0

511,233.0

430,236.0

445,047.0

380,000.0

400,000.0

420,000.0

440,000.0

460,000.0

480,000.0

500,000.0

520,000.0

540,000.0Ja

n

Feb

Mar

Ap

r

May Jun

Jul

Au

g

Sep

Oct

No

v

Dec

Ytd

Avg

Tho

usa

nd

Po

un

d

'11 '12 '13 '13 Est '08-'12 Avg

Beef Exports

177.1

264.6

239.5

182.1

230.6

190.1

269.7

159.6

217.6

120

140

160

180

200

220

240

260

280

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mill

ion

Po

un

ds

2013 2012 2011 '08-'12 Avg Pork Cold Storage

659,726.0

549,621.0

700,977.0

543,668.0

566,367.0

350,000.0

400,000.0

450,000.0

500,000.0

550,000.0

600,000.0

650,000.0

700,000.0

750,000.0

Jan

Feb

Mar

Ap

r

May Jun

Jul

Au

g

Sep

Oct

No

v

Dec

Ytd

Avg

Tho

usa

nd

Po

un

d

'11 '12 '13 '13 Est '08-'12 Avg

Pork Exports

396.8

430.6

403.6

500.5

398.4

368.7

504.9

366.2

420.3

340

360

380

400

420

440

460

480

500

520

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mill

ion

Po

un

ds

2013 2012 2011 '08-'12 Avg Chicken Cold Storage

574,455.0

676,442.0

617,903.0

689,452.0

658,975.0

500,000.0

550,000.0

600,000.0

650,000.0

700,000.0

750,000.0

800,000.0

Jan

Feb

Mar

Ap

r

May Jun

Jul

Au

g

Sep

Oct

No

v

Dec

Ytd

Avg

Tho

usa

nd

Po

un

d

'11 '12 '13 '13 Est '08-'12 Avg

Chicken Exports

519.6

651.0

628.8

506.2

649.0

462.4

692.9

501.6

655.0

400

450

500

550

600

650

700

750

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mill

ion

Po

un

ds

2013 2012 2011 '08-'12 Avg

Other Indicators & Commodities

Global Market Report OCTOBER 1, 2013

Skipjack Tuna The situation and price of skipjack raw material has been stable for several weeks. Nobody seems to be able to forecast future prices, and many believe that today’s price at $1900/MT may remain as is for some more time. Japanese, Taiwanese and Korean fishing boats operating in the Western Pacific region are reporting that they are only getting on average 15 to20 Metric Tons per boat, per day. Spanish and French fleets operating in the Indian Ocean are observing a slight improvement in the catch with 15/MT per boat per day but 30% to 40 % of their overall catch is yellowfin tuna. Aside from the FAD ban, July to September is normally the typhoon season in Philippines and the fresh fish landing in General Santos has dropped due to the bad weather conditions. Most of the canneries in General Santos were still doing single shift since production depends on market demand and availability of raw material for processing. However, some were just shutting down in case of no delivery. Demand from the European market has been slow. Europe generally is mainly on pole and line. The Middle Eastern market has been active after the holidays. Japan is quiet due to the weak Yen situation. Canneries are reportedly trying to negotiate for lower prices but indicating that they are unsuccessful as some raw material suppliers seem to be diverting product to Ecuador. Current raw material pricing is $1,880-$1,900 in Bangkok, $1,900 in the Philippines and $2,100 in Ecuador. On another note the 15th Philippines Tuna Congress was held in General Santos in early September. Different topics in discussion at the meeting included in the decline in volume of the Philippines tuna exports industry. Mr. Francisco Buencamino of TCAP was one of the guest speakers at the conference. Given that the 2 major importing continents for Tuna from the Philippines are Europe and North America, the Philippines would like to improve on the number of cases they can export. The “GSP+ advantage” is a zero duty into EU. This will be a big opportunity for the Philippines to compete with other countries that are currently at zero duty. The final paper work is expected to be submitted this month. Once approved, Philippines anticipate enjoying the zero duty advantage from EU starting July 2014. Philippines overall production capacity is expected to increase in the future. Outlook: Stable

Contact: Dennis Bradley d.bradley@mitsuifoods.com

Phone:

678-496-3310

Cell: 678-896-8407

We’re on the Web! www.mitsuifoods.com

PRICE TRENDS: Albacore - Stable Tongol – Stable Skipjack- Stable Yellowfin- Stable Pineapple- FIRM ! Mushroom- Soft Mandarins - Soft Artichokes - Soft Olives – Firm Peaches – Firm Pears – Firm Coconut – Stable Baby Corn – FIRM! Peppers – Firm Water Chestnuts– Firm

Tongol Tuna No major changes from the last report. Pricing in Bangkok is steady at 54Bhat/kg. Catch rates remain poor in Thailand. The season in Vietnam is starting slowly now and will end around late December, early January.

Outlook: Stable

Yellowfin Tuna Reports indicate good catching in all regions. In some areas the ratio of skipjack to yellowfin is as high as 60 to 40. The Raw Material price on yellowfin that is less than 10 kg is $2,650 and for 10 kg and up is $2,930. Outlook: Stable

Albacore Tuna Landing for long liner, good quality albacore in the Indian and Pacific Ocean has ceased until end of the year. We have heard of some deliveries of Atlantic albacore into some canneries at low prices. The raw material from this region is not preferred by serious packers since the fish is dark and oily. The current raw material price in Bangkok is $2,650 per Metric Ton.

Outlook: Stable

Pineapple: This season crop has been delayed. As we get closer to the period, it seems to be the volume is under what we have anticipated. The total volume was expected to come in at 1.8-2.0 million tons. This is still considered to be lower than the level of 2.2 million tons annually. With the current situation, most packers are still closed due to insufficient raw material needed for production from all over the country. The potentially small summer crop will be the result of the excess supply which drove down the price of the raw material. The incentive for the farmer to regrow the crop was quite low which was reflected in a reduction of the plantation area and so does the crop yield. The outlook for 2014 winter crop is still to be determined. However, over all expectation of the annual crop volume will not be so much more than what we have in this year. Total tonnage Thailand now is around 2,500-3,000 MT/day (considered as low volume) and mainly harvested in the East area (5.50 +/- baht/kg). The Southern area harvest got delayed and now packers are paying a premium of an additional 0.50 to 0.80 baht/kg to compete for the fruit from the East. For this winter crop, many anticipate a delay in the season. Expect the peak pack around the end of November or possibly December. Outlook: Firm

Mandarin Oranges: Due to the extreme hot weather conditions (many days often above 100 degree F) and lack of rainfall over 30-45 days, that the growers in China experienced during July-August the orange trees in the major growing areas like Hunan, Hubei and Zhejiang reportedly withered. Due to the drought situation at beginning of the mandarin growing stage, the mandarin fruit is small and the skin of fruit is very thin this year. Under these circumstances, the packers need to spend longer time to peel the mandarin skin and the production output is expected to go down. Packers originally estimated a 30% reduction in output. However, according to the latest reports Zhejiang and Fujian provinces did receive rainfall during the 2nd half of August which has helped the trees from suffering major damage and the growing situation got better. In Hunan and Hubei province, the mandarin output this year is expected to decrease only about 15% -20%. The current year’s mandarin production season is delayed; it will begin around end of October or early November. Our suppliers advised the first production season will be just for 75 days, because the Chinese Lunar New Year holiday is starting January 30th, 2014 so the factories will stop production 10 days before the holiday. The raw material price last year was RMB 1.2-1.4/kg. Suppliers expect the raw material price this year will keep at the same level or possibly be RMB 0.1 to 0.2/kg higher than last year, depending on the market demand. The average export quantity of mandarin oranges from China for the past 5 years was about 350,000 MT per year. Due to the good pricing of 2010-2011 seasons and no carry over inventory, packers became optimistic and produced about 440,000 MT during 2011-2012 pack. The total production of 2012-2013 was reduced to 280,000 MT. However as per reports the industry still holds about 50,000 MT of unsold inventory from the last crop. The US is the largest importer of mandarins from China. Last year, the export to the US was about 170,000 MT. Japan imports about 50-60,000 MT and Europe about 50-60,000 MT. The total export from China last year was about 340,000 MT. A substantial drop in price happened during the past 18 months due to the over-production in 2011-2012. Many packers reportedly suffered huge losses and in some cases customers could not draw their booking volumes on time. The available stock is expected to be sold by the packers aggressively during the beginning of the season just for cash flow. Also the labor cost continues to increase and RMB exchange rate is still staying high against US dollar. The industry predicts the price has already hit bottom during the past season so do not expect any drops in the upcoming season. Moreover many packers are in difficult financial situation and the total production for 2013-2014 is expected to be much lower than last year.

Apricots:    Spain reported a good production season for pulp but very little for canned due to soft texture issues. Towards the beginning of the season in China, packers thought the harvest would be abundant, so they quoted low prices. Reality was the supply was much less than expected and the price of the raw material firmed up drastically. Some suppliers claim that they suffered huge losses as they made commitments early predicated on low raw material costs. The total export from China to the US is not significant as a majority of Chinese production goes to Europe.  Outlook:  Firm  

Peaches/Pears/Fruit Cocktail: The two major producing countries China and Greece had a very difficult year in terms of raw material procurement. The extreme weather conditions (hail in Greece and frost in China) caused a reduction in the crop by 30-50% The Dangshan area in China finished their crop by end of August and reported 30 % crop failure. The northern region has completed their crop during the 1st half of September and reported a 20% shortfall. The average price of the raw material was 20% higher than the last season. The domestic consumption is increasing drastically in China. The local market consumes about 70% of the crop. The local market pays a much higher price than the export market which is why many packers give first priority to the domestic market. During the 2012 season China processed about 600,000 MT. The total production of this season is about 400-450,000 MT. There are about 4-5 peach varieties in China with only 2 varieties displaying good color and texture properties. Those varieties are #83 and #19. Suppliers are indicating that the majority of the current season's production has already been sold out. Even if some small volumes are available, they may not be of the desired variety. During 2012 China exported about 132,000 MT of which the US imported 44,000 MT, Japan 37,000 MT, Russia 13,000 MT with the remaining going to Australia, Chile, and Canada. There are 3 major varieties of pears in China. The Dangshan pear variety is crispy and less juicy. This variety can be preserved in a chilled condition for a longer period of time for further processing. Therefore, this variety can be used for canning from November thru April the following year. The Snow pear variety goes to the Chinese fresh market. It does have a better color, a good appearance, is crispy, juicy and very refreshing. This variety cannot be preserved for a longer period due to its characteristics. The Bartlett pear variety is soft and juicy. It is harvested during the month of August but canned during September after ripening. The output volume of this variety is very small and the cost is much higher than the regular Chinese pears. The harvest season for pears in China began during late August, early September and ends by December. This year was marked as a disastrous year for pears due to extreme low temperatures in the growing areas during the blossoming period. Due to frost conditions about 70% of the fruits withered and the total fruit output dropped considerably. Generally only 10% the total output in China goes to the canning industry. As the harvest continues and it was holiday season in China, Canneries are currently receiving the secondary fruit for canning. The raw material price is about 1-1.2Rmb per kg. Suppliers indicate that the price will move up drastically once the holidays are over. Chinese total exports during 2012-2013 was about 50,000 MT with the US importing 21,000 MT, Europe about 15,000, Thailand 5,300 and Japan 2,600 MT. The industry reports no carryover stock in China from the last season. Currently the finished goods pricing is about 10-15% higher than the last season The major portion of fruit cocktail production is done between September and March. Most packers produce during this period subject to firm commitments. There may be some year round production but packers use the highest volume of ingredients namely peaches and pears from frozen raw material. In the past the industry used to use diced peaches and pears from canned raw material. However, due to high cost of canning, they have moved to frozen raw material. The main problem for using frozen raw material is the product become very soft after further throwing and canning. Due to the shortage of peaches and pears the present price of fruit cocktail is 10-12% higher than last season. Suppliers indicate that price may go up further due to increase demand from Europe and the USA. The total fruit cocktail export from China during 2012 was about 59,000MT. (US 17,000MT, Europe 15,000MT and Canada 7,000MT) Outlook: Firm

Tropical Fruit Salad: The Papaya crop will start in October thru December but will slow down from January thru April. Guava is reported as a very small crop and the harvest period is every other two consecutive months. Since papaya and guava supply usage is considered small compared to the demand of domestic consumption, the price is extremely volatile and influenced mainly by the domestic consumption market. The growing area of papaya and guava does go up and down as much as pineapple since it is a tree that can yield fruits for quite a long time but has enough domestic consumption to support. With that being said, the factories have to fight aggressively for product with the domestic fresh market. Today, the raw material price is around 10 baht +/- per kg. In addition, a thunder storms the last couple of weeks (which continues even now) may adversely affect the crops. This needs to be closely monitored. Outlook: Firm

Mushrooms: There have been no major changes in China from the last update. With the increase in the fresh market consumption the raw material supply in China has been reduced drastically since the beginning of 2013 season. Very few offers are coming from China into the US market. At this time only small volumes are available from brine pack. Demand in the US has dropped further as the US market has been focusing mainly on product from Holland. Outlook: Soft Forecast: Soft

Olives: The latest reports indicate the harvest volume for 2013 will be about 499,000 MT, about 8,000 MT less than the previous crop. In some areas the fruit was affected by the high temperatures in August and is consequently too small for canning so it may have to be shipped to pressing plants. The Manzanilla variety has been negatively affected by the phenomenon called “Veceria” (irregular annual yield). Due to the poor condition of the trees, the yield will be limited and irregular. About 40% of the Gordal variety is of too small and not good for commercial purposes. The Hojiblanca variety appears to be of good quality and the yield may have benefited from the autumn rains as its harvesting begins later. The Cacerena variety is positively affected by Veceria phenomenon and its output may be compensated for the low yield of the previous year. Carrasquena variety is reportedly in good shape and it is expected to be good yield and quality  Outlook: Firm

Artichokes: Spain is reporting good sales this year due to the favorable pricing and the preferred quality. Packers anticipate selling out all volumes before the new crop begins. As inventories are depleted, the price is slowly moving up as well. Europe reportedly purchased sizable volumes during last month. Chile and Peru commenced new crop production, but still have volumes in stock from the old crop mainly on the 3 kg. Pricing from these 2 countries is lower than for product packed during last 2 years. Due to low market price, suppliers are indicating that they would like to limit their production just to firm the committed volumes. Outlook: Soft

Peppers and Pimientos Production in Spain continues. Price of raw material is higher than last season due to high demand from fresh market. The new crop price is about 10% to 15% higher than the last crop. Peru anticipates good production volume this year and offers are cheaper than last season. Chile produces only small volumes but the price is higher than the last crop season. Outlook: Firm

Baby Corn: Raw material supply situation has not recovered much and price is still on the high side. The standard 150-180 count corn is still very limited. Most of the packers are fully occupied with pending orders and may not be in a position to offer until the beginning of 2014. Outlook: Firm/Severe Shortage

Coconut: No major changes since last reported. Since the beginning of this year until June, the cost of coconut meat has been increasing much more than previous expectations. However, price of raw coconut meat has remained stable over the past 2 months as the supply situation gets back to normal. Moreover the general consumption and demand has also slowed down. Raw material price is about 25 to 27Bht per kg. Outlook: Stable

Bamboo Shoots: The harvest for this season is much less than the last crop. The main crop season is August thru September. The crop has not been that good due to drought situation in the growing areas during the month of July. Suppliers claim that they have suffered huge losses during the last crop due to slow demand and oversupply in 2012. Many canneries say they will only pack small volumes. Outlook: Stable

Water chestnuts: During 2011-2012 seasons, China exported approximately 40,000 MT of water chestnuts. In the 2012-2013 pack season, the export volume dropped by 20%. The main reasons for the reduction was due to the farmers’ efforts to concentrate more on the domestic market by letting the water chestnuts grow to a larger size to get a greater yield for domestic fresh/frozen market consumption. Production of canned water chestnut (especially the a10 size) was also reduced due to a labor shortage. Canneries could not find enough skilled workers for peeling at the right time. Wages were increased considerably. Finished goods increased by 30% just over the past 6 months. Currently there are no stocks available in China until new season begins. The situation of retail size is the opposite. During the past season, canneries produced about 15-20% more retail size than the previous year. According to reports, packers still have unsold stock of retail size product. Planting for 2013-2014 pack was started in July. According to reports due to high labor cost and low profits, many farmers have reduced their plantation area and changed to other more profitable agricultural products. The recent reports from the Farmers Association in the growing areas is the reduction in growing acreage is about 20-30% compared to the last season   Outlook: Firm

The opinions expressed here are an interpretation of the current commodity markets. They are not

recommendations or future guarantees of performance in specific commodity markets. Trinidad

Benham is not responsible for any damage or losses as a result of this information. August 1, 2013

The opinions expressed here are an interpretation of the current commodity markets. They are not recommendations or future guarantees of performance in specific commodity markets. Trinidad

Benham is not responsible for any damage or losses as a result of this information. October 31, 2013

October 2013 Aluminum Foil Market Update

Sideways Trading Pattern Remains

In October, aluminum prices traded mostly higher than September causing the monthly LME cash price to rise by

just over 2¢. The price was able to break above the 100-day moving average and has touched the 200-day moving

average (see chart above left). However, the upward move lacks momentum and thus is not convincing that prices

will continue higher. Prices remain in a wide sideways pattern. One of the key impacts on the price has been the

weakening US Dollar which moved from $1.35 to the euro to near $1.38 in recent weeks (see chart above right).

The USD was pressured by the government shutdown, the debt ceiling negotiations and weak jobs figures. In the

past days, the latest Fed policy statement strengthened the US Dollar as most analysts now believe that tapering of

asset purchases will not start until March or April’14. The next Fed meeting is not scheduled until December.

Global Economic Outlook Worsens

During the past month, the International Monetary Fund cut its global economic growth forecast for this year and

next; 2014 global growth is now projected at 3.6% (down 0.2%). A similar decline was predicted for US economic

growth in 2014 and the outlook for China worsened by a greater amount (down 0.4%). The IMF is concerned about

a slowdown in the major emerging markets of China, Russia, India and Mexico. The more negative economic out-

look is one of the reasons that oil prices continue to weaken (see chart above right). The weak economic sentiment

was also reflected in the latest analyst aluminum price forecast poll by Reuters. The results released last week

showed a mean aluminum price forecast for 2014 of 86.4¢, down 5.9¢ from July. Additionally, the low forecast

dropped to 77¢, down 6.4¢ from July. These results are indicative of the uncertainty of global economic growth.

Metal Warehousing Update

This week, the London Metal Exchange announced that it has reached an in-principle decision regarding the rules

for its warehousing network. No further details were available at this time, but an announcement should follow in

“due course.” However, even if new rules are enacted, the impact could be limited if warehouse financing of metal

continues merely in non-LME warehouses. This could help to keep global premiums high including the Midwest

Premium (US delivered price for aluminum). In fact, the premium only declined slightly during the past month.

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Pro News Market Update

“Produce from the Ground Up”

For the week of: November 3, 2013

Spinach Salad with Mango Vinaigrette

Ingredients

• 1(10 ounce) bag baby spinach 1 1/2ripe mangos, peeled, pitted and cubed • 1medium tomato, cored, seeded and finely chopped • 1/3cup walnuts, toasted and chopped • 1/3cup green onions, sliced • 1/3cup crumbled blue cheese freshly ground pepper to taste

Mango Vinaigrette

• 1/2mango, peeled, pitted and pureed • 3tablespoons extra virgin olive oil • 3tablespoons white balsamic vinegar • 1/4teaspoon salt

See more at: http://mango.org/recipe/spinach-salad-mango-vinaigrette#sthash.l7RN6maW.dpuf

Instructions To Prepare the Salad: Place spinach, mango, tomato walnuts and green onions in a large bowl. Drizzle with Mango Vinaigrette and toss well to coat. Add blue cheese and toss again very lightly. Serve immediately with freshly ground pepper. To Prepare the Mango Vinaigrette: Combine mango, extra virgin olive oil, white balsamic vinegar and salt in a blender container or small food processor; blend until smooth.

ASPARAGUS -- Demand exceeds supply, extremely tight; waiting for production volume to increase in the Obregon district of Mexico. AVOCADOES -- The increased volumes and growing inventory levels of the last few weeks has caused the avocado market to adjust. There is still more than enough fruit in the market. Due to this fact, pricing has been adjusting accordingly and many retail chains have already lowered their pricing on all Avocados (bagged, small or large size). This will help move current inventories and allow for a stable market to prevail, though this may take another week or two. Demand however will soon catch up to supply and retailers, growers, shippers and consumers will all benefit from a stable Avocado market. The California Avocado season is in final weeks and the pricing gap vs. imported Avocados is forcing many retailers and those in food-service distribution to make the switch. Harvesting will decrease each week with fewer and fewer growers left with fruit on the trees. By January 2014, Chilean Avocados supplies will likely increase in preparation for the Super Bowl pull which will start in early January.

BROCOLLI -- Continued light supplies with overall good quality with fairly good size, shape, texture and green color. Some fields are showing some hollow core. Industry wide supplies remain light; however, demand is also lighter for this time of year. There is a wide range in FOB markets. Expect to see lighter than normal production volumes through transition to the Southern growing region.

CARROTS -- Movement expected about the same. Currently, supplies are good, and quality is very good as well. CAULIFLOWER -- Extremely tight supplies for the balance of this week and into mid-next week. As volume increases, quality and condition should be fairly good but with smaller head sizes. Please pre-book orders being aware of the chance that your order will be prorated.

CELERY -- Good supplies in Salinas with best prices on 24s and 30s with weights 56-58 lbs. Quality is excellent with dark green, meaty stalks. Light supplies out of Santa Maria district and Oxnard will begin producing in the next few weeks as well as Baja Mexico. GREEN BEANS – What a difference makes, from beautiful very reasonably priced product from Wisconsin, to very expensive [doubled in 1 week], beans now out of Georgia. LETTUCE -- Average supplies this week. Prices are lower and quality is good although yields are decreasing as Salinas production is in its final week. Demand remains good; Canadians are continuing to purchase California lettuce. Huron is harvesting weights are 38-40 lbs., medium head size with good green color although there is currently a shortage of water. Yuma will start November 4th.

LEAF LETTUCE / ROMAINE -- The market is easing; last week’s high prices diminished demand. Quality is very good.

PEPPERS/CUCUMBERS/SQUASH -- Peppers -- Strong demand for new crop green bells in the Coachella Valley of California; prices are firming. Good availability for red bell peppers in the Coastal districts of Southern California. Cucumbers -- Oversupply from all districts in Mexico (Baja California, Northern Mexico). Adequate supplies in South Georgia, despite and rain and cool weather conditions. POTATOES -- Colorado Yukon Gold’s are making their way into the market place and are a real bargain. Idaho crop estimates are in and they advise the 316,000 acres harvested this year represents an approximate reduction of about 8%. Currently, markets are stable however that said, with the retail ad push you could see a short term increase in cost of goods. ONIONS -- Onion market is strong. Demand is good both domestically and abroad. Without pressure to sell from growers a demand exceeds supply situation has developed. The market is very likely to increase in subtle amounts through the end of the year. TOMATOES -- Rounds: As California growers clean up fruit this week, they have left the market steady as they finish out the season. Very few growers will have fruit into next week and will be clean up product. We are fortunate that the rain has stayed out of California allowing for there to be a continual supply of fruit to the country in light of the Florida crop being late. Florida is very limited on fruit and they do have good demand from the east for it. In this current demand exceeds supply situation, the few Florida growers that are able to harvest, have pushed their market cost up. Cherry and Grape: The grape tomato market took a jump this week with the Virginia crop now gone and lower yields from the Florida plantings. Baja is experiencing lighter harvest as well at this time. Cherry tomatoes are following this same pattern with less availability during the transition. Roma: The Roma tomato market has leveled off and has a slight undertone. Supplies out of Baja seem to be increasing a bit as well as crossings through McAllen, Texas. The demand for Roma tomatoes has slowed due to the current high market price. This along with the slight increase in supplies out of Mexico is giving the market a nudge downward.

APPLES – Demand and movement is very good, Demand exceeds supplies 125s smaller, mostly lower grade, all varieties. Sizes continue to peak on 88 and larger. Prices stable, minor tweaks depending on supply. Eastern apple shippers continue to harvest with reports of excellent quality. Demand on small pears continues to exceed supplies. Pears are peaking on 90 & larger. Prices have been adjusted to reflect supply. STRAWBERRIES Prices  have  stabilized;  the  market  is  expected  to  rise  when  the  Salinas/Watsonville  season  ends  in  a  few  weeks.  New  crop  Oxnard  and  Santa  Maria  supplies  are  commanding  higher  prices  than  summer  berries.  Quality  is  good      . Lemons: Lemons continue to be in extremely tight supply with improving quality. Demand still exceeds supplies on all sizes from all shippers. This will continue on for another 2 to 4 weeks as the new crop Desert fruit builds inventory.

Oranges: Good supplies have started on 72/88/113 fancy and choice. 56s larger and 138s smaller are limited. Limes: Weather has improved over the last week or so. We are still getting rain but not as heavy. We are seeing afternoon showers which is typical for the area. We are seeing daytime highs in the upper 70's with overnight lows in the upper 60's. Quality has been very good with little defects being seen. We are seeing some brown spots but they are being removed on the grading line. Sizing on the limes is shifting to the larger sizes GRAPES -- Red and green seedless varieties will continue to be available through November, after which the potential exists for a gap in supply to occur, prior to the beginning of new crop imports from Chile. Prices for late season California shipments will continue to firm for Crimson (red) and Autumn King (green) varieties. KIWI FRUIT – Still have Chilean, even though California are now available, chiefly due to the flavor profile. Expect about two more weeks before we switch to California. MANGOES -- “A plethora of resources and information are available on our website for consumers, retailers, foodservice and nutrition professionals, but most of all mango industry members. Our industry section of our website is a great source of information and is enriched with free research resources that will help better support you and your business.” That sentence came from their web site, but I am pretty certain William Watson [Originally from McAllen, TX], did not construct it.

MELONS -- Cantaloupe / Honeydew: Tight supplies for most sizes of cantaloupes, with the San Joaquin Valley harvest now finished. A gap in supply has occurred prior to the beginning of new crop production in the Desert Southwest, with extremely light production volume. Honeydews are in adequate supply in Central Arizona and Nogales. Watermelon: Availability will increase in Nogales by early November; however in the meantime both California and Florida supplies are very limited and thus the market is extremely expensive. Ron Orr

Executive Director Pro Mark [573] 680-1066 ronorr@promarkproduce.com

Market Watch . . . . . . .

Market Watch

November 1, 2013

Market Watch . . . . . . .

• Strength in the palm oil market and unwinding of meal/oil trades sent prices higher.

Soybean Oil

• The US crop is 77% harvested vs. 63% last week, 86% last year and 81% average. 98% of the crop is dropping leaves vs. 94% last week, 99% last year and 99% average.

• USDA forecast Brazil’s 2014 at a record 88 MMT vs. last year’s 82. Argentina’s crop was forecast at 53.5 MMT vs. 49.4 last year.

• Planting in Brazil is 34% complete vs. 32% last year. • Production estimates in India are falling due to heavy rains.

Crop Updates

Expected Value Range $37.00 - $39.00 cash

Soybean Oil Market Pricing Trend

Value Ranges *

The information above reflects the current opinion of Stratas Foods but does not represent a guarantee of future market conditions. All final oil booking decisions should be made by the end customer and not Stratas Foods.

* Value ranges represent good booking levels if the market dips into this range

The possibility of an unchanged biodiesel mandate is keeping a lid on prices.

Talk of higher than expected yields pressured prices.

Weather, higher edible oil prices worldwide and meal tightness prompted some short covering.

Misc. Influences Impact

Key Factors Recent Trend

November 1, 2013

Bearish Bullish Neutral

• Weekly US exports were 83.6 million bushels vs. 59.9 last week and 64 last year.

• There is speculation that a depreciation of the official exchange rate in Argentina could happen which could increase farmer selling.

• August biodiesel data from EIA showed production at 128 billion gallons, equal to July. There was a slight shift in feedstock with soy oil increasing to 510 million pounds from 480 in July or 52% of the total feedstock. There were small reductions in corn oil, white and yellow grease.

• US export bookings for the weeks of October 10, October 17 and October 24 were released yesterday and were much higher than expected at 174.2 million bushels. Meal was at the low end of expectations and oil was below guesses.

Flash Summary

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• Cornern about a lower ethanol mandate and talk of higher yields offered resistance and offset good weekly sales and ethanol production.

Corn Oil

• The US harvest is 59% complete vs. 39% last week, 91% last year and 65% average. 62% of the crop was rated good to excellent, an increase of 2% from last week.

• Brazil’s crop is 67% planted. Weather remains favorable. • Argentina’s forecast calls for normal amounts of

precipitation.

Crop Updates

Expected Value Range $37.50 - $39.50 cash

Corn Oil Market Pricing Trend

Value Ranges *

The information above reflects the current opinion of Stratas Foods but does not represent a guarantee of future market conditions. All final oil booking decisions should be made by the end customer and not Stratas Foods.

* Value ranges represent good booking levels if the market dips into this range

Misc. Influences Impact

Key Factors Recent Trend

• Weekly US exports were 25.5 million bushels vs. 32.3 last week and 15 last year.

• CNGOIC believes 2013 imports will be near 5 million tonnes. • USDA forecast 2013/14 Chinese imports near 7 million

tonnes. • South Korea bought US corn for January. This was their

first purchase from the US in 16 months. • Weekly US ethanol production was higher than last week

and last year. Stocks were lower than last week and last year. Margins are positive. There were no imports as import margins are quite negative.

• Farmer selling remains slow. • IGC increased world corn stocks by 4 MMT to 152 vs. 126

last year. • The three week catch-up report of US export bookings came

in higher than expected at 179.3 million bushels.

Flash Summary

Bearish Bullish Neutral

Higher than expected yield reports continue to pressure prices.

Good margins in ethanol and livestock feeding offered support.

Lower prices mean that US corn is now competitive for export.

November 1, 2013

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Market Watch . . . . . . .

• A lack of fresh data has canola following soybeans and other outside markets for direction.

Canola/Rapeseed Oil

• Oil World forecast the 2013 EU harvest at 20.5 million tonnes, up from 19.41 million in 2012. They pegged Germany’s crop at 5.75 million tonnes, up from 4.82 million in 2012. The French crop is expected to decline to 5.0 million tonnes from 2012’s 5.48 million. Britain’s crop should fall to 2.0 million tonnes from 2.56 million last year. Crops in Poland, Romania and Bulgaria are all expected to be larger than last year.

• Harvesting in Canada is almost complete.

Crop Updates

Expected Value Range $45.50 - $46.50 cash

Canola Oil Market Pricing Trend

Value Ranges *

The information above reflects the current opinion of Stratas Foods but does not represent a guarantee of future market conditions. All final oil booking decisions should be made by the end customer and not Stratas Foods.

* Value ranges represent good booking levels if the market dips into this range

Misc. Influences Impact

Key Factors Recent Trend • COPA reported crush for the week ending 10/23 at 139.3

TMT vs. 146.5 last week and 155.2 last year. Rail car logistics is making it hard to move meal. This is limiting the crush despite the record crop.

• There has been talk of strong demand from China. • Crush margins remain very good. Gains in CBOT soyoil

and weakness in the Canadian dollar are keeping domestic processors on the buy side.

• A firmer Canadian dollar pressured prices during yesterday’s trade.

• Steady commercial demand from both exporters and domestic crushers offered support.

Flash Summary

Bearish Bullish Neutral

The quality of the Canadian crop seems to be very good. This could create some additional demand.

Farmer offers are lower as the harvest is winding down, leaving less available supply.

Month-end profit taking pressured prices.

November 1, 2013

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• Palm continues to show strength with production/ending stocks concerns driving values higher.

Tropical Oils

• Wet weather in Malaysia could slow harvesting and deliveries. Yields could also be affected.

• Copra arrivals for October should be about the same as September with some improvement in Mindanao. This is good news for the export market.

Crop Updates Palm and Coconut Oil Market Pricing Trends

The information above reflects the current opinion of Stratas Foods but does not represent a guarantee of future market conditions. All final oil booking decisions should be made by the end customer and not Stratas Foods.

Misc. Influences Impact

Key Factors Recent Trend

Bearish Bullish Neutral

The Ringgit hit a 4-month high early this week which pressured prices.

Spillover support from gains in soyoil and talk of increased demand from the higher biodiesel blend offered support.

Demand for certified PKO from Europe has increased.

November 1, 2013

Flash Summary

• Exports of palm oil from Malaysia for the first 25 days of October were reported 0.56% lower by ITS and 3.8% higher by SGS.

• The BMD will be closed Tuesday in observance of Awal Muharram.

• UCAP’s estimate of YTD shipments of CNO from the PI is 34.8% higher than last year.

• Malaysia is increasing the biofuel mandate from 5% to 7%. • Chinese palm oil stocks were reported at 930,000 tonnes,

slightly higher than expected. • Palm oil hit a one year high yesterday. • October palm oil exports were reported about 3% higher

at 1.548 MT (vs. 1.504 last month) by SGS and 1.521 MT (vs. 1.530 MT last month) by ITS.

• Palm oil prices increased around 10% in the month of October.

• In order for palm oil to sustain its upward trend, prices of other oils will need to increase as palm is becoming relatively high priced when compared with other oils.

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