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Update

Egg Markets Week of July 6, 2020

TONE: Retail demand mixed. Supplies of extra large & large well balanced &

held confidently. Market steady to full steady.

The regional egg markets are as follows:

Northeast Midwest Central Southeast

Lg $1.01 $0.97 $1.08 $1.06

Md $0.76 $0.72 $0.76 $0.76

Source: Esbenshade, Inc.

______________________________________________________________________________

Egg Markets Overview

The weekly Egg Markets Overview is now available on our website and may be accessed by clicking on the link or graphic below.

https://www.ams.usda.gov/sites/default/files/media/Egg%20Markets%20Overview.pdf

Source: USDA AMS Agricultural Analytics Division Egg Markets Overview

Wholesale prices for cartoned shell eggs firmed and moved higher through the week as offerings and supplies declined to light to moderate levels. Most of the increase was seen for heavier classes, currently in shorter supply on an increased percentage of younger layers in the national flock from replacement efforts. Wholesale loose egg prices continued their week-to-week rise and fall, up sharply this week as offerings tightened and supplies shrank. The pace of trading is slow to moderate for both cartoned and loose eggs. Prices for national trading of trucklot quantities of graded, loose, White Large shell eggs increased 25% (from $0.348 to $0.436 per dozen) with a firm undertone noted. The wholesale price on the New York market for Large cartoned shell eggs delivered to retailers increased 11% (from $0.81 to $0.90 per dozen) with a firm undertone. The Midwest wholesale price for Large, white, shell eggs delivered to retailers was unchanged at $0.65 per dozen as was the California benchmark for Large shell eggs at $1.32 per dozen. Both markets anticipate increased pricing into next week. Consumer demand for cartoned shell eggs was down over the past week as the market enters the summer marketing period which is typically characterized by reduced production and consumer demand as outdoor activity increases. Retailers have become more comfortable with featuring shell eggs in their weekly ads as product availability issues experienced during the height of COVID have eased Supermarket featuring of conventional shell eggs continues at a slow pace and the average ad falls 5% (from $1.04 to $0.99 per dozen). Instead, retailers shift focus to specialty shell eggs, especially cage-free offerings which are the dominate types on sale this cycle comprising three-quarters of shell egg ads. Feature activity for UEP-defined cage-free shell eggs increases tenfold and the average ad price drops 13% (from $2.76 to $2.40 per dozen) on actives features. The spread between the average ad price for 12-packs of Large conventional shell eggs and those for their cage-free counterparts, at $1.41 per dozen, narrows by 18% ($0.31). Retail purchasing of cartoned eggs will increase one percent into next week and were 5% higher this week. The overall inventory of shell eggs declined 5% for a combined 9% decline over the past two weeks. The nation-wide inventory of Large eggs decreased 10% and the inventory of Large eggs in the key Midwest production region declined 5%. The inventory share of Large class shell eggs decreased 2% a 48% share of all shell egg stocks on inventory at the start of the week. The share of stocks of ungraded eggs was up 2% as carton business into the current ad cycle slowed. Breaking stock inventories increased 10% as breakers moderated their schedules while increasing their spot market purchasing, made easier by increased offerings of surplus stocks from reduced carton business. Total table egg production for the week was about unchanged from last week but is 9% below the level of last year – about 13.8 million dozen. Production averaged 3% over 2019 through March but has averaged 4% below 2019 since the onset of COVID-19.

Egg Markets Overview

A weekly publication of the USDA AMS Livestock and Poultry Program, Agricultural Analytics Division June 26, 2020

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30

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

week

U.S. Table Egg Demand (Shell Egg Demand Index) 2018 2019 2020

Source: USDA AMS L&P Agricultural Analytics

0

45

90

135

180

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52week

Loose Shell Egg, Large, White, National Index (f.o.b. dock, cents per dozen) 2018 2019 2020

Source: USDA AMS L&P Agricultural Analytics

72.1 70.9 72.5 73.873.0 72.8 72.6 74.570.1 71.0 72.7 74.068

69

70

71

72

73

74

75

I II III IV

Egg Per Capita Disappearance vs. Production (as of June 2020) 2020 est. 2019 2018

Source: USDA ERS; AMS L&P Agricultural Analytics

Source: USDA AMS Agricultural Analytics Division Egg Markets Overview

The wholesale price for breaking stock in the Central States held steady through the week at $0.38 per dozen with a weak undertone. Demand remains light to moderate while offerings continue to increase, reaching moderate levels as the week progressed. Supplies are moderate to heavy as schedules run at near to slightly reduced rates. Trading is slow to moderate. The increase in available supplies and production slowdown has allowed breakers to rebuild stocks, increasing levels by 10% this week, 20% over the past two weeks. The volume of eggs processed during the past week increased 2%, representing 30% of weekly table egg production – a 2% increase in share – its highest share since early March. Production this week is 14% below the rate of production during the same week last year. Production of whole liquid eggs increased 2% while that for whites was up 4% and yolk production increased 6%. Dried egg production eased this week, down 4%, and down 5% from the level of production last year.

Wholesale prices for whole certified liquid whole eggs are too few to with a steady undertone. Offerings are moderate on moderate trading and light to moderate demand. The wholesale price for frozen whole egg products decreased 2% (from $0.57 to $0.56 per pound) while the price for liquid whites gained 2% (from $0.58 to $0.59 per pound). The undertone is steady on moderate offerings and light to moderate supplies. Trading is usually moderate on moderate interest. Wholesale prices for dried eggs are steady with whole dried egg prices steady at $2.10 per pound and those for dried yolk unchanged at $2.00 per pound. Prices for dried albumen were steady at $4.55 per pound. The undertone is steady on moderate offerings and light to moderate demand. Supplies are mostly moderate while trading is slow to moderate. According to NASS, the April monthly volume of frozen eggs in storage increased 14% from March, 25% over April 2020. This is the highest recorded level of monthly frozen egg stocks since statistics have been kept starting in 1923 – 97 years. Stocks of whole frozen egg increased 13% for the month and 21% from a year ago and is down a percent to 47% total frozen stocks. Stocks of frozen yolk rose sharply, up 74% for the month and 239% above the level of a year ago. Frozen white volume in storage increased 9% for the month, 5% below the level of a year ago. Stocks of unclassed eggs were up 11% for the month and 29% over April 2019 with a 42% of cold storage inventory of frozen eggs.

Cage-free commitments as of June 22 were unchanged, requiring 63.5 billion cage-free eggs per year to meet 100% of needs from an approximate cage-free flock of 229 million hens (71.5% of the U.S. non-organic flock), indicating a shortage of 161 million hens from the current non-organic cage-free flock of 68 million hens. The lay rate for non-organic cage-free production is currently estimated at 76%. 6.1%

21.3%

0%

5%

10%

15%

20%

25%

30%

20202019201820172016201520142013201220112010200920082007

% o

f US

flock

Cage-Free Flock (% of total U.S. flock as of June 22, 2020) organic cage-free

U.S. Table Egg Layer Flock Estimates(layers by system in millions)

System Flock %

Caged1 232.3 72.6%

Cage-Free 87.5 27.4%

Organic Total 19.5 6.1%

Organic 14.8 4.2%

Free-range 3.2 0.9%

Pastured 1.4 0.4%

Non-Organic Total 68.0 21.3%

Barn/Aviary 61.8 19.3%

Free-range 2.8 0.9%

Pastured 3.4 1.1%

1 - battery and enriched systems

June 2020

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

mill

ion

30-d

ozen

cas

es

week

Weekly Eggs Processed (30-dozen cases) 2018 2019 2020

Source: USDA AMS L&P Agricultural Analytics

Weekly Market Highlights

• Hard red spring wheat futures and basis premium prices are lower this week.

• Hard red winter wheat futures are higher following some surprises in recent USDA crop estimate reporting.

Basis premiums are mixed.

• USDA reporting issued early this week painted a bullish picture especially for corn and soybeans, less so for

wheat. Planted acres fell below previous estimates and trade expectations. This resulted in higher futures values

for each market close since.

• Wheat futures price increases were not as strong as those for corn and soybeans due to positive inputs like

harvest pressure, improving Russian crop outlook, and slow export sales.

• Weather events for wheat and row crops will be closely watched given the smaller than expected potential

planted acres. Increasing corn and soybean prices could pull wheat prices along for the ride.

Facts on Flour King Wheat

The standard of the winter wheat flours, King wheat is widely used in bakeries from the largest wholesaler to the

smallest retailer. It has very good tolerance and is recommended for all types of yeast-raised products.

Description: A high quality malted flour milled from a selected blend of Hard Red Winter Wheat, King wheat is

available bleached or unbleached.

Uses: Pan breads, soft rolls, sweet goods, thick crust pizza.

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

Bus

hel P

rice

Futures & Basis Markets

KC Future Spring 15% Basis

Mpls Future Winter 13% Basis

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.

JULY 2, 2020

Produce Market Update

“Produce from the Ground up”

For the week of 05-July-2020

Watermelon Salad

Prepare this cool, refreshing salad on a hot summer day. As a bonus, the watermelon is a good

source of both vitamins A and C. This watermelon salad has only 4 other ingredients — cucumbers,

fresh mint, feta cheese, and balsamic vinaigrette. See why we call it "refreshing"?

Ingredients

3 cups chopped watermelon (3/4-inch chunks) 1 cup chopped cucumbers (1/4-inch chunks) 1/2 cup crumbled Traditional Crumbled Feta Cheese 2 tablespoons chopped fresh mint 2 tablespoons Balsamic Vinaigrette Dressing Instructions

Combine ingredients. Serve cold.

Recipe from:: The Daily Meal

WEATHER UPDATE -- SALINAS, CALIFORNIA This week will be cooler than last week. The forecasts have been a little erratic lately. AVOCADO -- The market is level; 48-count and larger sizes are ample. Quality is very good, however higher oil content in the fruit, we are seeing shorter shelf life in storage. ASPARAGUS -- Alert Prices are elevated. Harvesting is ending in California and Michigan. Production will be centered in Central Mexico through October; expect steady prices once Mexican growers reach peak production in a week or two. Quality is very good. BROCOLLI -- Alert Supplies have improved but volumes are still well below normal. Additionally, I have had some reports on hollow core showing up. BRUSSELL SPROUTS -- We will have tight supplies this week, but we expect better volume beginning the week of 06-July. Quality is generally good to very good. Promotable volumes could be available by mid-July, this is your time of the year Don Hughes! CAULIFLOWER -- We are expecting excellent volume all week. CARROT -- Alert Many packs sizes, especially hand packed sizes, are in very short supply due to the social distancing regulations from the Coronavirus. Quality remains good. CABBAGE -- We will finish Delaware by mid-week and move into Colorado. By week after, we are finally anticipating a drop in market cost to more normal levels, fingers crossed. CELERY -- Business is much better in Salinas, with less supplies available in the industry. The market is elevated; supplies will remain tight until the Canadian and Michigan seasons ramp up. CILANTRO -- Bunched Cilantro supplies are expected to be plentiful this week. Now is a good opportunity to promote product. GREEN BEANS -- Supplies and quality are good.

GREEN ONIONS -- Supplies and quality are good. KALE -- Bunched Kale supplies are expected to be plentiful for the next few weeks. Now is a good opportunity for promoting product.

LETTUCE -- Volume continues to decline and the market is still active. Quality has been very good; color and solidity have been perfect. We have either sold out or come close every day, so holdover is very fresh. Anticipate an active market all week due to light supplies. LEAF LETTUCE --. The Romaine market is very active. Romaine production supplies are below normal budget volumes. Industry supplies are becoming limited. We expect reduced supplies for at least the next month. With the recent demand increase, we have seen market pricing advance dramatically. Lots are exhibiting good color, texture, and uniform sizing. We expect continual marginal fringe burn. Production volumes have corrected and are at budgeted numbers, for leaf items. Blocks are very nice with good texture, size, and weight. Demand has picked up and markets are settled in the low teens.

MUSHROOMS -- ALERT Foodservice could see shortages of fresh mushrooms over the next 6 to 10 weeks as retail is expecting the same according to a story released yesterday. The shortages are the fallout of heavy demand brought on by COVID 19 at retail and the uncertainty of demand in the foodservice segment. We are looking at upwards of twelve weeks for the mushroom industry to catch up because of the outbreak, growing cycles, and difficulties keeping up with demand at retail, after an extremely poor March. In addition to the immediate demand, adjustments have been made at the farm level to limit the number of workers onsite as part of social distancing practices further limiting productivity. ONIONS -- Sales have been good in spite of an interrupted shipping week, and we are currently moving onions out of Five Points, California and over wintering out of the Pasco, WA, area. Onion availability has been a little tight, and we have had little gaps here and there, but the quality has been good, and the market seems to be edging up a little. We should be finishing up in California in the middle of August, about the time that direct seed out of Washington gets going. On transportation, trucks are tight. Getting trucks has been difficult, but I chalk it up to the holiday. PARSLEY -- Bunched Parsley supplies are expected to be plentiful again this week. Now is a good opportunity for promotion.

PEPPERS/CUCUMBERS/RADISH/SQUASH – Peppers: Bell peppers remain tight out of California. Labor hours will be reduced next week due to triple digit heat in central California. Red and gold bells will be extremely short as Coachella will be mostly done for the season. Bakersfield, CA. will start around the 2nd week of July.

Cucumbers: market very strong as supply will be light for this week. Squash: Alert Zucchini and yellow squash very short due to weather and extreme demand POTATOES -- The Idaho potato market is rising. Low temperatures during the October 2019 harvests have affected the integrity of storage crop Burbank’s. Expect packing delays until new crop, fresh-run Norkotah become available in early August

RADISH -- Even though they are still a little spendy, they are great chopped up and added to turkey or chicken salad, great when served on the dark brown bread, that I can’t spell ..

Pump … Markets are firming up due to heavy precipitation and wind damage to fields. SPINACH -- Supply and quality are good. Quality is fair due to slight heat damage from previous weeks. SPRING MIX -- There is some mildew showing, as well as slight heat damage from previous weeks. TOMATOES --

CHERRY: Alert are currently grown in the Southeastern United States, Mexico and Baja, Mexico. The best quality is from the product from Baja, Mexico. The market is steady, and the Southeast is currently a couple of dollars higher than in Mexico. GRAPE: Alert There is heavy demand for United States grape tomatoes due the USDA Farmers to Families Food Box program. This has kept the market elevated a couple of dollars higher than the grapes from Mexico. The quality on both United States and Mexican grapes looks good on the product we see. ROUNDS: market is slightly down from last week. South Carolina is on the downhill side of their production season. They will be done picking the crown fruit later this week. The quality has been very good for the entire season on the South Carolina crop. Arkansas is in full swing and the quality there is very good. Their short season is only about 2-3 weeks longer, and then they will be done. Most of, if not all of the California growers have started. Quality is fair right now, but the expectation is it will only get better as they get deeper into the season. The Mexico crop is good quality, but there is not much coming up to the States currently. Overall, it seems as though demand continues to build, but it is at a very slow pace. A second round of outbreaks in some of the more populated states is keeping the demand stagnate. ROMAS: are coming out of several different growing areas during this time of the year, including Georgia, South Carolina, Alabama, Arkansas, mainland Mexico, Baja, Mexico, and Central California. Each area has different pricing and varying quality. Overall, the market is steady, and prices are stable.

APPLES / PEARS: The market will inch up through the summer; Washington storage stocks are adequate, but will continue to diminish until new crop production starts in the fall

BLUEBERRIES -- Maybe we’re a little biased, but blueberries are pretty amazing. And while we are always enjoying blueberries all year round, July is National Blueberry Month, so we’re celebrating what makes them the ultimate everyday treat. Toss a handful into a refreshing salad. Bake them into a drool-worthy cake. Mix up a satisfying smoothie. That’s

the beauty of blueberries: there’s truly no limit to what you can do. Just buy ‘em, eat ‘em,

love ‘em! CITRUS -- LEMONS: the market is advancing as better demand continues as restaurants open back up. LIMES: Movement is good on limes out of Mexico though some tightness in volume may be imminent. Our concern is the rain from the last three weeks. The quality is starting to decrease a little bit. At the same time demand right now for limes is stable. ORANGES: High markets are expected throughout the Valencia season. The crop is dominated by 88-count and larger sizes GRAPES -- (Green) The Mexican season will end by mid-July. California-grown green and red seedless supplies will start shipping July 13. The California market will start higher than current prices but will stabilize as harvesting ramps up. (Red) We have started red globes and demand is very good. Coachella grapes are available, and demand is very good with most shippers selling out weekly. KIWI FRUIT -- Chilean arrivals continue, better supply this week, prices steady. Fruit is hard well shaped; all sizes are available. Movement is good. MELONS -- Cantaloupe: The Westside District has started here in Central California on cantaloupes. Most desert cantaloupe growers will finish by the end of the week with a couple going into the following week. Honey Dew: should start next week in Bakersfield, whereas Westside district will start the next week. Nogales honeydews should go through next week. Quality on cantaloupe has been fair to good and honeydew quality has been good to excellent. PEACHES – A Picture is worth 1000 words!

Photo taken from our actual inventory. Code 180138 25 lb. VF 60/64 ct California Grown, famous “Summer Zee” variety. Come and get em ! Staff photo courtesy Jim Kindig.

WATERMELON -- supplies continue to struggle as we wind down Mexican supplies and work towards domestic supplies. Mexican fruit should limp thru June into early July. Arizona crops have been delayed by cooler temperatures and the Southeast has seen rain events over the last week causing additional delays. We should see an increase in domestic production this week, but additional retail demand will counter supply availability.

Mini seedless Watermellon 8/9 pack -- Now in stock! A great summertime favorite and … we have them on promotion!!! STRAWBERRIES -- Switch it up this year and celebrate the 4th with some edible sparklers!

This recipe is on the Driscoll web site, and the Driscoll

Strawberries are on Sale, be sure to ask your representative about the special pricing we have.

Ron Orr

Executive Director The Pro Mark Group [573] 680 - 1066

ronorr@promarkproduce.com

Market Watch . . . . . . .

Market Watch

July 2, 2020

Market Watch . . . . . . .July 2, 2020

Soybean Oil Futures

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.

What to Watch For

• Coronavirus – Apple closes 30 more stores as second wave of COVID continues to hit the US. Hospitalization rates overall ok with TX, AZ and to some extent FL being concerns.

• Fundamentals –Crop Progress, CFTC COT, Weekly Export data, WASDE, MPOB

• Weather – Sell off this afternoon as rain works into mid-day forecasts. Entering critical time period for Corn.

• Politics/Macro – China continues to buy US beans. Trade war concerns continue around recent Hong Kong stance by US government. State/Local government shut down responses continue to heap uncertainty into our markets. 6-10 Day Temperature Forecast

7 Day Forecast

Market Watch . . . . . . .

Soybean Oil

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.

Moving Averages (Cash) Flash Summary

July 2, 2020

Value Ranges *

Expected CBOT Range 27.00 – 29.00

• Up, Down, up again… this week was another up week as the USDA shocked the trade with the overall reduction of acres – principally Corn. This caught the managed money positions in a pickle as they were short 250k+ contracts going into the report. Coupled with a warming forecast and less rain, markets rallied Tuesday-Wednesday.

• Weather improvement mid-day Thursday saw prices ease back lower, but still positive on the holiday shortened week.

• NASS shows strong oil demand, but still above estimates for oil stocks. Oil stocks are 400+ M lbs above May 2019 levels into a more uncertain demand window for the summer.

• Biofuel mandate discussion on hold until November

Fundamental UpdatesSoybean Oil Market Pricing Trend

• Soybean ratings in the Good-Excellent categories improved from 70% to 71%.

• Acreage Report (M Acres):March June Range of guesses

• Corn 96.99 92.006 93.0-97.1• Soy 83.51 83.825 83.5-85.6

• Soy stocks were 1.386 B bu vs 1.275-1.49 estimates• NASS Crush saw 179.6 M bu of soybeans crushed in May• Soy oil stocks declined to 2.447 B lbs vs 2.372 avg guess

and 2.019 for May 2019

7/2/20 30.829-Day 30.94

20-Day 30.6550-Day 29.50

100-Day 29.89200-Day 32.21

Soy

Market Watch . . . . . . .

Canola/Rapeseed Oil

Fundamental Updates

Moving Averages (Cash) Flash Summary

July 2, 2020

• April 9 WASDE reported lower exports, seed, residual use,

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.

• Oil share tumbled this week as meal lead the products on the move higher and the oil led the break on Thursday.

• Continued strong Chinese demand for seed and oil out of Vancouver keeps the market at a strong premium to soy.

• Logistical issues get worse after the fire and other crushers are slow to get back up after downtime in June.

• Rains have led to massive flooding in the Chinese provinces of Guizhuo, Sichuan, and Hunan which produce roughly 33% of the Chinese rapeseed crop.

• Canola issues will likely see buyers able to switch over to soybean oil in Q3 and potentially Q4. High prices cure high prices…

• Stats Canada reports that Canola acreage is down 0.8% to 20.8M Acres for 2020.

• Canola crusher/refiner had a fire at its facility earlier this week, but details are still forthcoming. Early reports show an exterior fire and that no one was hurt.

• Canadian canola crush is up 8% YoY and canola exports are up 4% YoY.

• May Canola crush in the US was 194,813 Tons vs 177,350 in April and 133,790 in May 2019. This produced 162 M lbs of oil – up 10% vs April and up 43% vs May ’19.

Canola Oil Market Pricing Trend

7/2/20 41.549-Day 41.01

20-Day 40.0850-Day 37.24

100-Day 36.65200-Day 38.09

Canola

Market Watch . . . . . . .

• MPOB May final (June next Friday)• Production 1.651 MMT -0.09% MoM• Exports 1.369 MMT +10.69%• Stocks 2.034 MMT -0.49%

• SPPOMA June 1-25 (1-30 data is delayed)• Yield +25.26%• Production +25%

• June 1-30 Exports• ITS +29.13%• Amspec +28.66%

Tropical Oils

Moving Averages (Cash) Flash Summary

July 2, 2020

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.

• Early week rallies failed as the palm/soy spread widened this week. Late week rallies were only able to sustain in a lip-service fashion as external markets climbed.

• Export pace is slowing in the Month-on-Month numbers as May was back-end heavy.

• Production estimates for June are creeping higher. We appear to have worked through the late season dryness from last summer/fall. The production is ramping higher as the trees typically peak production in late Summer early Fall.

• India buying resurfaced helping to provide a fundamental reason for the late week rally but may have overdone it.

• Chinese fund buyers are still sitting on their hands.

Fundamental UpdatesPalm and Coconut Oil Market Pricing Trend

7/2/20 53.50 7/2/20 37.509-Day 54.17 9-Day 37.83

20-Day 53.94 20-Day 37.8050-Day 51.93 50-Day 35.90

100-Day 51.38 100-Day 36.65200-Day 52.17 200-Day 38.17

Coconut Palm Olein

Weekly Livestock, Poultry & Grain Market Highlights

Nat'l Purchased Carc Wtd Avg Price - Barrows & Gilts ($/cwt) 28.55 -1.3% -59.8%Pork Carcass Cutout FOB Plant ($/cwt) 65.34 0.6% -12.9%Segregated Early Weaned (SEW) Feeder Pigs ($/head) 6.07 -4.9% -81.4%Iowa/So. Minn Avg Weight Barrows & Gilts (lbs) 285.6 -0.3% 0.6%Est. Hog Slaughter 2,641,000 2.1% 10.7%YTD Est. Hog Slaughter 62,294,000 N/A -0.3%Est. Pork Production (mil lbs) 573.8 1.7% 13.6%YTD Est. Pork Production (mil lbs) 13,473.4 N/A 0.6%

Live Wtd Avg Steer Price, 5 Area FOB ($/cwt) 96.21 -4.5% -12.6%Dressed Wtd Avg Steer Price, 5 Area Del ($/cwt) 154.78 -3.7% -13.5%Boxed Beef Cutout, Choice ($/cwt) 207.17 -6.0% -5.6%Boxed Beef Cutout, Select ($/cwt) 109.85 -47.4% -44.5%Boxed Beef, Choice/Select Spread ($/cwt) 11.62 0.00 -9.97By-Product Drop Value, Steer ($/cwt live) 7.11 0.0% -16.0%CME Feeder Cattle Index ($/cwt) 129.82 1.4% -2.5%Texas Avg Live Weight Slaughter Cattle (lbs) 1,358.0 0.0% 4.2%Texas Percent Slaughter Heifers 40% 17.6% 21.2%Est. Cattle Slaughter 680,000 3.7% 1.5%YTD Est. Cattle Slaughter 15,285,000 N/A -6.0%Est. Beef Production (mil lbs) 562.3 3.9% 5.3%YTD Est. Beef Production (mil lbs) 12,604.0 N/A -3.5%

Slaughter Lamb, Comprehensive, Carc. Wtd Avg Price ($/cwt) 207.61 -3.7% -31.8%Lamb Carcass Cutout ($/cwt) 345.16 -2.6% 0.3%Est. Sheep Slaughter 38,000 0.0% 5.6%YTD Est. Sheep Slaughter 940,000 N/A -7.8%Est. Lamb Production (mil lbs) 2.6 0.0% 8.3%YTD Est. Lamb Production (mil lbs) 26171.3 N/A -1.5%Veal Carcass Wtd Avg Packer & Non-Packer Owned ($/cwt) 282.51 -0.7% N/A

June 29, 2020

Current WeekChange From

Past WeekChange From

Past Year

Source: USDA AMS Livestock, Poultry & Grain Market News Portal

20.0030.0040.0050.0060.0070.0080.0090.00

100.00110.00120.00

J F M A M J J A S O N D

Weekly Barrow & Gilt Price and Weekly Pork Cutout vs. 5 Year Average ($ per cwt)

Hog Price Pork Cutout 5 Year Avg Hog Price

Hogs and Pork

Cattle and Beef

Lamb and Veal

310.00

320.00

330.00

340.00

350.00

360.00

370.00

380.00

390.00

J F M A M J J A S O N D

Weekly Lamb Carcass Cutout vs 5 Year Average ($ per cwt)

2020 5-year

150.00175.00200.00225.00250.00275.00300.00325.00350.00375.00400.00425.00450.00475.00

J F M A M J J A S O N D

Weekly Dressed Steer Price and Weekly Boxed Beef Choice Cutout vs. 5 Year Averages ($ per cwt)

Steer Price Boxed Beef Choice Cutout5 Year Avg Steer Price 5 Year Avg Choice Cutout

Weekly Livestock, Poultry & Grain Market Highlights

Central Illinois Avg Corn Price ($/bu) 3.0500 -4.2% -26.7%Central Illinois Avg Soybean Price ($/bu) 8.4800 -1.9% -1.9%Central Illinois 48% Soybean Meal, Rail ($/ton) 285.80 -0.9% -10.2%Hard Red Winter Wheat Truck to Kansas City ($/bu) 4.4125 -1.6% -5.1%Dark Northern Spring Wheat, 14%, MN, Rail ($/bu) 6.2850 -7.5% -5.4%Soft White Wheat Portland ($/bu) 5.7250 N/A -5.0%Sorghum, Kansas City, Truck ($/cwt) 6.2500 -1.1% -16.7%

Nat'l Delivered Whole Body Price (cents/lb) 74.24 2.6% -20.0%Est. Young Chicken Slaughter - Current Week (000's) 161,847 0.6% N/AActual Slaughter of Young Chickens (000's) 1,618,890 894.6% 854.5%YTD Actual Slaughter of Young Chickens (000's) 4,102,714 N/A 1.2%Actual RTC Pounds of Young Chickens (000's) 788,663 -0.7% -2.4%YTD RTC Pounds of Young Chickens (000's) 19,611,879 N/A 3.4%

Nat'l FOB Frozen 8-16 lb. Hens,Wtd Avg Prices, cents/lb 110.00 2.0% 21.2%Actual Slaughter of Turkeys (000's) 3,969 0.1% -4.5%YTD Actual Slaughter of Turkeys (000's) 99,161 N/A -0.2%Actual RTC Pounds of Turkeys (000's) 100,888 -1.6% -6.6%YTD RTC Pounds of Turkeys (000's) 2,573,470 N/A -2.5%

Combined Regional Large Eggs (cents/dozen) 72.63 0.0% -0.5%National Shell Egg Inventory (30 doz. Cases/000,s) 1375.7 0.2% N/AShell Egg Demand Indicator (SEDI) -9.60 0.30 -13.90Central States Breaking Stock Av. Price (cents/dozen) 35.50 0.0% 54.3%National Breaking Stock Inventory (30 doz. Cases/000's) 335.7 3.1% N/AEggs Broken Under Federal Inspection (30 doz cases) 1,397,486 2.4% -13.8%YTD Eggs Broken Under Federal Inspection (30 doz cases) 35,295,886 N/A -10.2%

Source: USDA AMS Livestock, Poultry & Grain Market News Portal

June 29, 2020

Current WeekChange From

Past WeekChange From

Past YearGrain

Broilers

Turkeys

Eggs

45.00

55.00

65.00

75.00

85.00

95.00

105.00

115.00

125.00

J F M A M J J A S O N D

Weekly National Broiler Whole Body Delivered Price (Cents /lb)

2020 2019 5-year

75.00

80.00

85.00

90.00

95.00

100.00

105.00

110.00

115.00

J F M A M J J A S O N D

Weekly National Frozen Whole Body Hen Turkey FOB Price (cents/lb)

2020 2019 5-year

30.0060.0090.00

120.00150.00180.00210.00240.00270.00300.00330.00

J F M A M J J A S O N D

Weekly Combined Regional Large Egg Price (Cents/Dozen)

2020 2019 5-year

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Market Update — June 26th, 2020

Michael Greenberg

312.202.0002

@ResinGuru

bringing the market to you

Copyright © 2020 The Plastics Exchange, LLC | Patent Protected | All Rights Reserved.

Resin for Sale 12,914,284 lbs

Resin Total lbs Low High Bid Offer

HDPE - Inj 2,678,048 $ 0.360 $ 0.410 $ 0.350 $ 0.390

LLDPE - Film 2,268,392 $ 0.370 $ 0.455 $ 0.350 $ 0.390

PP Copo - Inj 1,741,828 $ 0.400 $ 0.500 $ 0.430 $ 0.470

PP Homo - Inj 1,403,564 $ 0.380 $ 0.500 $ 0.410 $ 0.450

LDPE - Film 1,135,932 $ 0.460 $ 0.550 $ 0.490 $ 0.530

HDPE - Blow 1,100,208 $ 0.380 $ 0.440 $ 0.350 $ 0.390

LLDPE - Inj 961,656 $ 0.460 $ 0.520 $ 0.430 $ 0.470

HMWPE - Inj 879,104 $ 0.385 $ 0.430 $ 0.360 $ 0.400

LDPE - Inj 745,552 $ 0.475 $ 0.540 $ 0.470 $ 0.510

TPE IndexSpot Range

HDPE Blow Molding

1 Year

PP Homopolymer

1 Year

Spot resin trading hummed along as the end of the second quarter drew near. Completed volumes were better than year ago levels, but fell short of our first quarter average. Both Polyethylene and Polypropylene prices were firm and the bottom end of both of those markets continued to lift. The flow of fresh railcars slowed as producers seek to raise prices in July, some PE and PP grades have become outright scarce. Processors were again searching for very well-priced resin, but by the end of the week, most seemed to recognize that the stellar opportunities that had been dwindling, yet still available weeks ago, were now all gone and a new higher price cycle was underway. June Polyethylene contracts have increased $.04/lb and producers are riding the upward momentum having nominated another $.05/lb increase for July. Polypropylene contracts seem to be rolling flat again in June, though could actually justify a small cost-push increase; at the very least, recently rising monomer costs should translate to a moderate July increase. While demand in some sectors like automotive remain slack, other areas have shined including medical, single use bags, and resin exports in general. The overall domestic processing community is still ramping back up. The major energy markets all settled lower this past week. WTI Crude Oil started off with strength and peaked Tuesday at $41.36/bbl. The market fell from there as the weekly storage report showed that despite the strong recovery rally, the overall fundamental picture remained relatively bleak. The August WTI contract ended Friday at $38.49/bbl down $1.34/bbl. Brent Oil rolled to September and saw a similar loss, shedding $1.21/bbl to $40.93/bbl. Natural Gas futures also rolled, the new front month August contract remained heavily pressured and chunked off a huge $.204/mmBtu to $1.544/mmBtu. The expiring July Nat Gas contract traded down to $1.432/mmBtu which was a fresh 25 year low. NGLs, largely affected by Nat Gas values, were also down big. Ethane lost $.032/gal to $.177/gal ($.075/lb). Propane dropped $.042/gal to $.47/gal ($.133/lb).

Monomer trading continued along last week’s tepid pace, volume was moderate as prices continued to work higher. Ethylene kicked off the week with good demand for prompt material before interest waned midweek. On Monday, spot June ethylene changed hands a couple times at $.12/lb in Louisiana while material in TX demanded a slight premium, deals were done there at $.1225/lb. Several more transactions were inked at similar prices midweek before June Ethylene was then bid up to $.125/lb Thursday and it ultimately settled at $.13/lb, a gain of $.0075/lb. Forward prices also rose to maintain the same contango shape, Ethylene pricing for the second half of peak 2021 currently rests at $.155/lb. Propylene saw growing interest with a few scattered deals completed throughout the week, mostly for future delivery, while July PGP was bid higher. By the end of the day Friday spot PGP settled up nearly a half cent to just under $.245/lb, with June PGP contracts targeted flat or up a cent, May contracts were priced at $.26/lb. With a key PDH unit still down, July PGP prices continued to edge higher and ended the week at $.2725/lb, which currently suggests that a few-cent increase could be seen for July.

Spot Polyethylene trading and pricing was solid this past week, though demand somewhat stalled as spot prices snugged up to reflect the $.04/lb increase being implemented for June contracts. Our trading desk managed to string together about an average number of deals, though business was more challenging than in previous weeks. Buyers were still looking for resin at old pricing, but availability continued to tighten and few special deals were to be found. Certain grades were difficult to source without jumping the price several cents, these included LDPE for film and injection, LLDPE Granular, as well as HDPE for film and blow molding. Most producers were essentially sold out for the remainder of the month as they turned their attention towards July along with their next $.05/lb increase. In the meantime, the middle market has provided good liquidity as savvy resellers added to inventories over the past couple months at historically cheap levels and their spec buying is starting to pay off. Export demand remained strong and buyers have become acclimated to higher price levels, which are starting to inch up again. We continue to have a positive outlook on PE pricing.

Polypropylene trading was good, but not great; completed volumes fell short of the previous week’s tally and prices ended flat, but with an upward bias as the bottom of the market cleaned up further. Prime truckload availability was adequate to fill most urgent requests, but premiums were sought and generally received, reseller inventories now seem to be thinning out. Generic prime railcar offers were limited, though there was a steady flow of good offgrade material, but those prices have been rising. Compounders continued to seek lower-end widespec railcars at low-ball pricing, but we have seen a growing trend for these cars to be sold into the export market, which has seen volumes grow in recent months. Braskem announced the construction completion of their new billion pound Polypropylene plant in LaPorte, TX. It is the first new PP plant built in the US in almost 20 years and will begin production of a full slate of Homopolymer, Copolymer and Random Copolymers later in the third quarter. Polypropylene contracts should be steady to up a cent in June and rising monomer costs currently point to a 3-4 cent increase for July. We remain somewhat bullish on PP pricing for the short / mid term.

07/02/2020

Dairy Market

BLOCK: Up .0350 @ $ 2.6750 6 SalesBARRELS: Up .0150 @ $ 2.4150 4 SalesBUTTER: Down .0125 @ $ 1.7375 0 SalesNFDM Grade A: Up .0050 @ $ 1.0100 0 SalesCME Dry Whey Unchanged @ $ .3300 0 Sales

Date Blocks Block Change Block Sales Barrels Barrel Change Barrel Sale Spread

06/29/2020 2.6200 Up .0450 9 2.4000 Unchanged 2 0.2200

06/30/2020 2.6400 Up .0200 5 2.4000 Unchanged 0 0.2400

07/01/2020 2.6400 Unchanged 0 2.4000 Unchanged 0 0.2400

07/02/2020 2.6750 Up .0350 6 2.4150 Up .0150 4 0.2600

Average Market: 2.6438 20 2.4037 6

Date Butter Butter Change Butter Sales Grd A Grd A Change Grd A Sales

06/29/2020 1.7650 Unchanged 0 1.0125 Down .0075 1

06/30/2020 1.7650 Unchanged 0 1.0050 Down .0075 6

07/01/2020 1.7500 Down .0150 4 1.0050 Unchanged 0

07/02/2020 1.7375 Down .0125 0 1.0100 Up .0050 0

Average Market: 1.7544 4 1.0081 7

Date Dry Whey Dry Whey Change Dry Whey Sales

06/29/2020 0.3175 Up .0050 6

06/30/2020 0.3175 Unchanged 5

07/01/2020 0.3300 Up .0125 7

07/02/2020 0.3300 Unchanged 0

Average Market: 0.3238 18

--Year Ago--

Date Blocks Barrels Butter NFDM Grade A Dry Whey

07/01/2019 1.8650 1.7800 2.4100 1.0500 0.3300

07/02/2019 1.8600 1.7800 2.4000 1.0475 0.3300

07/03/2019 1.8500 1.7800 2.4050 1.0450 0.3275