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Egg Markets Week of May 25, 2020

TONE: Retail demand fairly good to good. Supplies of Extra Large & Large fully

adequate. Market continues to test.

The regional egg markets are as follows:

Northeast Midwest Central Southeast

Lg $0.97 $0.93 $1.04 $1.02

Md $0.83 $0.79 $0.83 $0.83

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

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 shell eggs moved lower through the week with a prevailing weak undertone noted. Retail business remains good and foodservice business has begun to recover as states begin reopening for business across the country. However, supplies and offerings have increased to moderate to heavy levels which is pressuring prices lower. The pace of trading is slow to moderate. Prices for national trading of trucklot quantities of graded, loose, White Large shell eggs declined 27% (from $0.588 to $0.427 per dozen) with a weak undertone noted. The wholesale price on the bellwether New York market for Large cartoned shell eggs delivered to retailers declined 10% (from $1.03 to $0.93 per dozen) with a barely steady undertone. The Midwest wholesale price for Large, white, shell eggs delivered to retailers declined 2% (from $0.91 to $0.89 per dozen) and the California benchmark for Large shell eggs declined one percent (from $1.63 to $1.61 per dozen). Both markets have a weak undertone prevailing into next week. Consumer demand for cartoned shell eggs continues at an above average level even as many grocers have been able to maintain a supply sufficient to keep shelves stocked. Nagging concern over reported limits on meat purchases in some locations in the country have helped to support egg demand as an available protein. Foodservice demand has begun to revive as more businesses begin to open across the nation but interest is outpaced by supply. Retail purchasing of cartoned eggs will increase one percent into next week and were down 12 percent this week. Supermarket featuring of shell eggs continues to build steam, nearing levels last seen in mid-March as more stores becomes confident enough in their supply chains to offer price incentives. The average ad price drops again this week, down 13% (from $1.19 to $1.03 per dozen). Feature activity for specialty eggs remains very limited with most focused again this week on cage-free types. Offerings of UEP-defined cage-free shell eggs double from last week also to their highest level since mid-March and the average ad price drops 19% (from $2.79 to $2.26 per dozen). The spread between the average ad price for 12-packs of Large conventional shell eggs and those for their cage-free counterparts, at $1.23 per dozen, narrows by 23%. The overall inventory of shell eggs decreased 2% as did the nation-wide inventory of Large eggs. The inventory of Large eggs in the key Midwest production region declined 13% as eggs cleared into retail channels to support continued good consumer demand. The inventory share of Large class shell eggs was unchanged at nearly 50% share of all shell egg stocks on inventory at the start of the week. The share of stocks of ungraded eggs decreased 9% as eggs moved to support retail demand for cartoned use. Breaking stock inventories declined 12% as breakers opted to draw from their own already reduced supplies, made less by flock adjustments and reduced breaking schedules. Total table egg production for the week was just slightly higher than last week just slightly less than last year at 264 thousand dozen.

Egg Markets Overview

A weekly publication of the USDA AMS Livestock and Poultry Program, Agricultural Analytics Division May 15, 2020

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Source: USDA AMS L&P Agricultural Analytics

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


Source: USDA AMS Agricultural Analytics Division Egg Markets Overview

The wholesale price for breaking stock in the Central States advanced 50% (from $0.20 to $0.30 per dozen) with a firm undertone noted. Demand is increasing and is currently moderate to fairly good on light to moderate supplies and mostly light offerings. Schedules remain varied and trading has increased to a moderate pace. The reopening of many states has stirred foodservice business which, coupled with flock adjustments, is helping to alleviate the surplus of stocks that has burdened the market in recent weeks. Breakers have been drawing down their stocks and are now looking to replenish them as business has begun to slowly increase. The volume of eggs processed during the past week was unchanged, representing just under 23% of weekly table egg production. This is its lowest point since December 2015 following the aftereffects of the avian influenza depopulations of the breaking stock layer flocks. Production of whole liquid eggs decreased 3%. Production of whites and yolk increased after last week’s sharp decline with whites up 6% and yolk up 9%. Dried egg production declined 15% growing inventories are making drying a less desirable option. This is a 21% decline from the record peak reached two weeks ago. Wholesale prices for whole certified liquid whole eggs moved sharply higher since the last test with a higher undertone. Spot demand is mostly good, best for whole egg. Offerings are light to moderate; trading is active. The wholesale price for frozen whole egg products jumped 19% (from $0.42 to $0.50 per pound) while the price for liquid whites was unchanged at $0.59 per pound. The undertone higher on whole egg, weak on the balance. Offerings are mostly moderate on moderate supplies. Trading is mostly slow on light to moderate interest. Wholesale prices for dried eggs are steady with whole dried egg at $2.05 per pound, dried yolk at $2.00 per pound, and prices for dried albumen at $4.70 per pound. The undertone is steady on light to moderate demand. Offerings are moderate on fully sufficient supplies. Trading is mostly slow to, at times, moderate. NOTE: The AMS Market News Monthly Dried Egg Inventory Report is unable to be published at this time due to incomplete information resulting from reduced cooperation. According to NASS, the March monthly volume of frozen eggs in storage increased 3% from February, 5% over March 2019. Stocks of whole frozen egg increased a percent for the month and 3% from a year ago and is down a percent as a share of total stocks (at 48% of all frozen egg stocks. Stocks of frozen yolk rose sharply, up 77% for the month and 34% above the level of a year ago. Frozen white volume in storage decreased 3% for the month, 6% below the level of a year ago. Stocks of unclassed eggs were up 4% for the month and 10% over March 2019, and the share of stocks was 43% of cold storage inventory of frozen eggs. Cage-free commitments as of April 21 were unchanged, requiring 63.5 billion cage-free eggs per year to meet 100% of needs from an approximate cage-free flock of 221 million hens (67% of the U.S. non-organic flock), indicating a shortage of 153.5 million hens from the current non-organic cage-free flock of 67 million hens. The lay rate for non-organic cage-free production is currently estimated at 79%.

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


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Weekly Eggs Processed into Dried Eggs (pounds) 2020 2019 2018

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Relationship Between Shell Egg Retail Ad Price and Demand (SEDI)Advertised prices to consumers by U.S. supermarkets for conventional caged shell eggs

Price 2020 Demand 2020


Weekly Market Highlights

• Wheat futures prices that had been trending flat to lower made a sharp turn higher in Wednesday’s trading session.

• Basis premium prices have been firm.

• Hard red U.S. winter wheat crop condition concerns deepened this week as the first Virtual Wheat Tour provided closer

looks and insight into the maturing fields.

• As global demand for wheat exports returns, U.S. spring wheat futures were supported by sharply higher Russian and

French prices. Conditions are deteriorating again in these regions, threatening to deliver another small Russian crop.

• We can expect weather and potential harvest forecasts to continue to strongly influence wheat markets. Currently healthy

wheat stocks can be expected to continue to keep wheat prices trading in a narrow range.

Facts on Flour Protein Quality

Last week we discussed the characteristic of wheat flour protein to form gluten. So, if we buy flour with a higher protein content

(quantity), can we back a better (quality) product? This is not always the case. High quality, low quantity protein flour will

outperform a high quantity, low quality flour in producing acceptable baked goods.

Whole wheat is a great example – it can have a protein quantity between 13.5 and 15 percent. This is a higher protein range than

high gluten flour (13.5 to 14.5 percent). Will the whole wheat flour outperform the high gluten? No. The bran and the germ are

rich in non-gluten forming protein, which will contribute to the overall protein quantity, not quality.

In relative terms, protein quantity can be used as a predictor of the suitability of flour in specific baking applications. But the

protein content of a flour can be affected by many agronomic factors, such as amount of rainfall, fertilizer usage, temperature

stressed, etc. A quality miller is going to balance protein quantity with the appropriate quality testing to prepare the best flours

available for specific baking needs. So how do we measure protein quality? Just wait until next week!

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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.

MAY 21, 2020

Produce Market Update

“Produce from the Ground up”

For the week of 24-May-2020

Cantaloupe Breakfast Bowls

Ingredients 1. 1 cantaloupe

2. 1/2 cup greek yogurt

3. Small amount of granola

4. 3 oz. each of raspberries and blackberries

5. Honey

6. Mint sprig

Directions 1. Cut the cantaloupe in half and remove the seeds

2. Fill the cavity with the yogurt

3. Top with granola and berries

4. Drizzle with honey and mint

5. Enjoy!

You can easily swap the yogurt with ice cream and make a great dessert Recipe from: California Grown, and I think was submitted by blogger Susan Phillips

WEATHER OUTLOOK -- High pressure will ridge over the region next Thursday thru Wednesday, May 27 with northerly winds and slightly above normal temps. A trough will pass over the area on May 28 with cooler temps and a chance of showers. Weak high pressure is over the area on May 29, with warmer temps. A cold front will begin to move into the region on May 30 with cooler temps. AVOCADO -- Michoacán Mexico. Supply is matching demand. 80% of crop has been harvested to date. Import volume will be a slightly lighter each week with normal seasonal decline. Expecting promotable supplies through spring and summer. This is old crop fruit, has high maturity and excellent flavor, external color will tend to be darker green to black. #2 fruit available for foodservice. California is harvesting daily with good volume. 5-day forecast is for a cooling trend with normal temperatures. Quality is very good, with consistent sizing; peaking on 48's, 60's and 40's. 25% of California's crop has been harvested to date. Promotable supplies expected through August. Fruit is available in Santa Paula, CA. Select sizes available at Calavo, NJ. Peru: limited amounts arriving weekly now; volume arrivals in mid to late June. US imports expected 200 million pounds. Expect good volume middle of June to August. Promotable volume expected, inquire for program pricing. ASPARAGUS -- As consumers eagerly await the arrival of this season’s crop of Michigan

asparagus, the weather decided to make them wait just a little longer. Cooler temperatures in late April and early May – and even a late season snowfall – delayed the harvest by about a week but did not harm the excitement of those awaiting its’ arrival. Now, Michigan asparagus season is officially underway with some grower shippers beginning to ship orders this week and many others beginning to ship next week. Quality, volumes and pricing will be similar to last season and peak volumes in late May and early June. “Asparagus is a weather-dependent crop and can sometimes be unpredictable,” said John Bakker, executive director of the Michigan Asparagus Advisory Board. “We expect to see promotional volumes the week of May 25th as we head into Memorial Day weekend.”

BROCOLLI -- Good quality and color. Plentiful supplies will still be available keeping the market in a supply-exceeds-demand situation. There is a concern on hollow core showing up in broccoli, but it has been limited, so far, and does not look to become a major concern.

BRUSSELL SPROUTS -- Sorry Don, yet another week of tight supply and only fair quality. CARROTS -- Fresh carrots appear immune from the pandemic as domestic and import volumes have remained in normal ranges. Likewise, pricing has been steady from California and Georgia, while Mexican imports have seen prices double in the past month. CAULIFLOWER -- Great sizing and quality. Cauliflower prices are low, and volume and quality are strong. It looks to be another case of a crop planted before any pandemic knowledge, and now there are more supplies than demand. CELERY -- The unbelievable amounts of celery sticks going through the foodservice school sector has really created demand and growers are having a hard time keeping up.

GREEN BEAN -- Seeing a mixed market, good supply available in the East Florida and South Georgia while Mexico is finishing up. California has good supply and highest prices of the three regions. Quality is good in all regions. GREEN ONIONS -- This item is really doing well, with great quality, however supplies are on the lighter side.

LETTUCE -- Quality showing low percentages of mildew from recent weather pat-terns. We will be heavily monitoring raw quality and trimming down at field to mitigate any shelf life challenges. LEAF LETTUCE -- Managing a low percentage of weather-related fringe burn, on Romaine. We will be trimming product at the field level to mitigate any potential for shelf life issues. Overall great quality on Romaine as well as all leaf lettuce items. SPINACH -- Light texture from recent weather patterns. We continue to heavily monitor at field level. SPRING MIX -- Overall good quality. Working through best lots available to minimize any shelf life challenges from recent weather patterns. MUSHROOMS --

We can expect shortages of mushrooms for the next six to 10 weeks, as mushroom production catches up to shifts in demand brought on by the COVID-19 pandemic. Mushrooms grow in six- to 12-week cycles, according to the American Mushroom Institute, which includes a period to preparing compost and a period of two or three growth cycles, supporting a maximum of three harvest. Growers adapted production cycles to the COVID-19 conditions in March, affecting availability now. “When the coronavirus hit, no one could have foreseen the markets’ unpredictability,” Rachel Roberts, president of the American Mushroom Institute, said in a statement on mushroom availability. “Mushroom growers made rapid decisions to sustain the health of their busi-nesses and to protect the industry’s workforce in unprecedented and uncertain circum-stances.” Despite that six- 10-week period of shortages, “growers are working diligently to fill retail cus-tomer demand, and we expect more farms to come online and ramp up production,” as more states lift stay-at-home orders, Roberts said in the statement. In mid-March, mushroom farms saw a significant drop in mushroom orders, and many had coolers full of product that had to be donated or thrown out. Growers were also forced to limit workers on-site, leading to cuts or delays in plantings, according to the statement. After the immediate drop in demand, consumers who were cooking at home drove an in-crease in retail sales. “Mushroom farms sometimes source from other growers to fill shortages; but because some were forced to reduce or delay the growing cycle, and because many farms with a majority of restaurant and foodservice customers had either shut down completely or scaled back to a negligible amount, it is still proving difficult to source mushrooms to fill shortages today,” PEPPERS/CUCUMBERS/RADISH/SQUASH -- Bell Peppers: The market is easing a bit. Greens are done in Mexico. Reds will go for a couple more weeks there and Mexican growers are dropping their prices to stay relevant with California production ramping up. California is off to a good start with all the warm weather they have had. Quality in the West is best out of California so that is where we are booking.

Cucumbers: Cucumber market is much better this week as demand is increasing. Radish: Markets are firming up due to heavy precipitation and wind damage to fields. Squash: Zucchini and yellow squash will be light in Fresno this week due to cooler weather we are experiencing. ONIONS -- Shelf life performance has been good on both reds and yellows. Ring colors are consistent with great sizing and minimal defects. We continue to work with our growers on quality and providing best lots available. POTATOES -- The 40- to 70-count market remains up; demand is strong and Norkotah stocks are limited. Northwest storage crop quality is good: pressure bruising, and hollow heart are occasional problems, mostly in large sizes. New crop production will begin in early August, as previously reported.

TOMATOES --

Rounds: are another story. Prices remain elevated. Western Mexico is winding down, and the new crop will not start out of Jalisco for a few more weeks. Florida is the main region. We are hearing mixed reviews about California starting. Typically, it is mid to late June, but we heard today from one large grower that they started in a light way this week. We are really waiting for California to ramp up before pricing returns to normal. We expect prices to stay high through next week. Grape: The grape tomato market is moving upward this week, and demand is very strong. Florida is finishing one growing area and moving to another. Production will be down until the new growing area picks up. There are grapes crossing from Mexico, but not enough volume to slow the demand or stop the market from going up. Roma: are affordable right now, but increasing demand indicates that the market will go up. Baja, Mexico is starting to increase in volume, but both Florida and mainland Mexico are decreasing in volume. There are some quality issues out of mainland Mexico from the hot weather and picking crews falling behind. Cherry: There is a split market on cherries between the west coast and east coast. Cherries have started in Baja, Mexico, but are mostly staying on the west coast and are quite a bit more expensive than the cherries from Florida. The market in Florida is increasing

APPLES / PEARS -- Retail demand is moving larger fruit and bags and now the USDA Produce Box program is causing high demand on small fruit. BANANAS --

Here you go Matt, as promised. STRAWBERRIES -- Oxnard has seen a reduction in fruit size. Oxnard should be ending production soon as the North picks up. Not much change in Organic production this week. CITRUS -- Lemons: The California lemon market is still going strong; inventories are down a little which will help improve pricing and market. This would be a great time to promote 75s or bags using a 75. Big fruit is very nice, and we have a decent amount of it when it comes to 75/95, choice and fancy. Now, is a good time for promoting larger fruit. Quality has been excellent, and the fruit is beautiful. We are having optimal growing weather and the fruit will continue to be exceptional if we continue to have this weather. Oranges: Alert Navels -- Demand exceeds on all product. Growers are losing labor pools to cherries & tree fruit. So, the market will be advancing on all products. Navels are peaking on 88 & larger. Valencia’s are also on the large size with very few 113-138 showing up. This market is also advancing. LIMES are stable right now. No sudden increases for next week coming MANGO -- Although mangos are ubiquitous, there is still plenty of room for the tropical fruit to grow on menus. In fact, mangos have increased 16% on menus within the past 4 years and are projected to grow another 10% in the next 4 years. As consumers increasingly gravitate toward global cuisines, such as Thai or Filipino, interest in mangos is likely to grow. While desserts and beverages are the most obvious application for mangos (the trendy, over-the-top Mexican Mangonada makes use of fresh mango purée as well as chopped mangos, for instance), they can also be found in savory dishes. Take inspiration from operators like Chicago’s 90 Miles Cuban Cafe, which menus Salmon a la Plancha with mango sauce, white rice, mixed vegetables, and fried plantains. KIWI -- Chilean kiwi arrivals continue. However, less volume will be arriving in the next 10 days. Kiwi has good quality, is firm and well-shaped, mostly 39 & larger. Movement is steady.

GRAPES -- (Green) The old crop storage is really poor, no really poor. If you have not done so, now is the time to shift over to new crop. (Red) seedless from Chile are cleaning up quickly. Flames in Mexico are demand exceeds. Coachella has started Flames in a light way. Good supplies of red globes in Parlier. MELONS: Cantaloupes -- Current cantaloupe arrivals have been showing a significant shift to larger sizing (9ct and larger) with very limited 12/15s finding their way in. We do anticipate this trend to continue over the next couple weeks as we conclude the import melon season. Cantaloupes in the desert will start in a small way next week with mostly smaller fruit being available from the outset. Melons we have coming from Guatemala continue to show excellent quality characteristics. Melons have sizing, color, and strong consistent brix levels. We are seeing some light numbers available out of Mexico as well. Honeydew -- The market is inching up. The offshore season is ending, but Mexican supplies are abundant. Quality is very good: sugar levels range from 10 to 13 Brix.

PINEAPPLE -- have been one of the hardest hit produce commodities, seeing volumes less than half of a normal year after mid-March. Likewise, as demand dropped after stay-at-home orders started two months ago, prices be-gan a steady decline. However, since the start of May, prices have shown some strength, suggesting some supply-demand equilibrium.

WATERMELONS -- As we move into the summer months, I have had several email posts containing the proper technique for watermelon selection. Toward that end, while there are many out there who over think the process, it as simple as 1-2-3: 1. Look the watermelon over. You are looking for a firm, symmetrical watermelon that is free

from bruises, cuts or dents. 2. Lift it up. The watermelon should be heavy for its size. Watermelon is 92% water; most of

the weight is water. 3. Turn it over. The underside of the watermelon should have a creamy yellow spot from

where it sat on the ground and ripened in the sun.

Ron Orr

Executive Director Pro Mark

[573] 680-1066 [email protected]

mailto:[email protected]

Market Watch . . . . . . .

Market Watch

May 22, 2020

Market Watch . . . . . . .May 22, 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 –Continued re-openings and restocking has the market cautiously optimistic.

• Fundamentals – Crop Progress, CFTC COT, Export Sales • Weather – Rain is probably more bearish than bullish at this

point due to the speed with which crops have been planted. Warming temperatures should advance crops quickly.

• Politics/Macro – US/China continues to turn on a dime and the markets are following the latest warming or cooling of relations. Issues over Hong Kong, Coronavirus, Chinese access to US Capital markets are all potential landmines for the market heading into the 3-day weekend.

7 Day Forecast

Last 2 wk rainfall vs Normal


Soybean Oil


Moving Averages (Cash) Flash Summary

May 22, 2020

Value Ranges *

Expected CBOT Range 25.00 – 27.50

• Soybean oil was stronger most of the week as Crude oil strength continued to guide markets higher. Late week China/US tensions put markets on the defensive heading into the 3-day weekend.

• Biodiesel pull on bean oil is off significantly from 2019 but perhaps the lows for 2020 are in? More and more states re-emerge and that should see more miles driven.

• Soybean oil futures will follow beans on broad moves and that means that continued export sales of soybeans will be necessary for any sustained soybean oil futures rally. Rhetoric to end the week has traders defensive.

Fundamental UpdatesSoybean Oil Market Pricing Trend

• Soybean crop progress pacing well at 53% vs 38% last week and 38% average.

• Soybean emergence at 18% vs 7% last week and 12% on average

• SBO export sales up at 62,100 MT and shipments were 11,700 MT.

• Chinese sale from last week included in the above, but South Korea still the leading buyer on the week

• April saw 149.3 M gallons of biodiesel RINs generated. March was 149.9 and April 2019 was 160.9.

5/21/20 29.219-Day 28.80

20-Day 28.3850-Day 28.71

100-Day 31.32200-Day 32.60


Canola/Rapeseed Oil

Fundamental Updates


May 22, 2020

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


• Canola margins remained weak this week despite the oil share rally. The Canadian dollar strength and rising seed price ate into margins throughout the week.

• Canadian farmers are starting to fall behind on plantings, but no major concerns as of yet.

• Chinese demand for export canola oil has tightened up the market allowing for canola oil to not experience a drastic stock build as a result of COVID

• Return to normal? What is normal now anyway? The New England area remains largely closed with New York putting restaurants in Phase 3 for June 15 target opening.

• Summer downtime schedules are upon us, further helping from over-production.

Canola Oil Market Pricing Trend

• Stats Canada projected 20.6 M Ac of canola planted this year down 1.6% vs 2019 and the lowest total since 2013.

• March canola crush in the US was 187,954 Tons vs. 175,341 last month and 142,921 last year.

• US Canola production of 122 M lbs in March• Canadian canola crush in February was 812,633 MT. This

was significantly higher than the previous Feb record.• Manitoba is 42% planted vs 55% 3-yr average• Saskatchewan canola is 38% seeded

5/21/20 35.619-Day 35.20

20-Day 34.9150-Day 35.07

100-Day 36.94200-Day 37.98


• MPOA May 1-20 by region• Peninsular Malay +2.15%• Sabah +48.62%• Sarawak -1.89%• East Malaysia +36.49%• Malaysia +11.82%

• MAY 1-20 Exports• ITS +11.6%• Amspec +14.2%

• India and China show up to buy Malaysian Palm oil.

Tropical Oils


May 22, 2020


• Palm lower on the day as futures sagged into the long weekend amidst Chinese uncertainty.

• US/China fighting as well as China lowering GDP guidance has the global economy less confident of a V-bottom recovery

• Chinese and Indian demand has helped support palm oil prices this week, but bids have not followed the rally higher in the late week moves

• Global Vegoil prices will take their lead from palm and the trend is currently higher. Strong production numbers from Malaysia indicate that the trees are producing well despite Q3 dryness in 2019 and should continue to trend upward.

• BMD will be closed Monday and Tuesday

Fundamental UpdatesPalm and Coconut Oil Market Pricing Trend

5/21/20 51.00 5/21/20 34.509-Day 50.00 9-Day 34.06

20-Day 49.94 20-Day 34.0850-Day 50.44 50-Day 35.33

100-Day 52.77 100-Day 38.68200-Day 51.07 200-Day 37.76

Coconut Palm Olein

Weekly Livestock, Poultry & Grain Market Highlights

Nat'l Purchased Carc Wtd Avg Price - Barrows & Gilts ($/cwt) 37.00 0.8% -54.6%Pork Carcass Cutout FOB Plant ($/cwt) 115.12 1.0% 32.3%Segregated Early Weaned (SEW) Feeder Pigs ($/head) 7.20 2.3% -87.0%Iowa/So. Minn Avg Weight Barrows & Gilts (lbs) 295.1 1.3% 3.1%Est. Hog Slaughter 2,103,000 18.5% -10.6%YTD Est. Hog Slaughter 47,936,000 N/A -0.8%Est. Pork Production (mil lbs) 456.0 19.1% -9.5%YTD Est. Pork Production (mil lbs) 10,337.1 N/A -0.4%

Live Wtd Avg Steer Price, 5 Area FOB ($/cwt) 112.31 7.5% -3.7%Dressed Wtd Avg Steer Price, 5 Area Del ($/cwt) 179.65 12.4% -3.3%Boxed Beef Cutout, Choice ($/cwt) 459.04 4.0% 108.4%Boxed Beef Cutout, Select ($/cwt) 439.53 3.8% 110.9%Boxed Beef, Choice/Select Spread ($/cwt) 19.51 1.36 7.69By-Product Drop Value, Steer ($/cwt live) 6.79 -1.2% -18.4%CME Feeder Cattle Index ($/cwt) 124.80 3.0% -6.0%Texas Avg Live Weight Slaughter Cattle (lbs) 1,346.0 1.7% 4.3%Texas Percent Slaughter Heifers 34% -8.1% 3.0%Est. Cattle Slaughter 499,000 10.4% -24.6%YTD Est. Cattle Slaughter 11,534,000 N/A -6.7%Est. Beef Production (mil lbs) 405.2 10.2% -23.0%YTD Est. Beef Production (mil lbs) 9,497.8 N/A -4.7%

Slaughter Lamb, Comprehensive, Carc. Wtd Avg Price ($/cwt) 216.91 -3.6% -27.5%Lamb Carcass Cutout ($/cwt) 350.26 -0.5% 3.8%Est. Sheep Slaughter 38,000 5.6% -5.0%YTD Est. Sheep Slaughter 704,000 N/A -10.9%Est. Lamb Production (mil lbs) 2.4 9.1% -11.1%YTD Est. Lamb Production (mil lbs) 46.7 N/A -13.5%Veal Carcass Wtd Avg Packer & Non-Packer Owned ($/cwt) 284.28 0.3% N/A

May 18, 2020

Current WeekChange From

Past WeekChange From

Past Year

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

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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


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


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 ($/bu) 2.9950 0.5% -16.6%Central Illinois Avg Soybean Price ($/bu) 8.2450 -1.7% 7.1%Central Illinois 48% Soybean Meal, Rail ($/ton) 289.00 -1.1% -0.8%Hard Red Winter Wheat Truck to Kansas City ($/bu) 4.6475 -5.6% 8.4%Dark Northern Spring Wheat, 14%, MN, Rail ($/bu) 6.3125 5.0% 4.6%Soft White Wheat Portland ($/bu) 6.0750 0.6% 4.3%Sorghum, Kansas City, Truck ($/cwt) 6.0200 6.4% -0.2%

Nat'l Delivered Whole Body Price (cents/lb) 77.45 13.2% -24.0%Est. Young Chicken Slaughter - Current Week (000's) 162,486 0.0% N/AActual Slaughter of Young Chickens (000's) 162,954 0.6% -0.9%YTD Actual Slaughter of Young Chickens (000's) 3,147,898 N/A 2.9%Actual RTC Pounds of Young Chickens (000's) 788,893 2.0% 1.0%YTD RTC Pounds of Young Chickens (000's) 14,951,912 N/A 4.6%

Nat'l FOB Frozen 8-16 lb. Hens,Wtd Avg Prices, cents/lb 103.40 -1.5% 19.3%Actual Slaughter of Turkeys (000's) 3,808 -5.5% -6.2%YTD Actual Slaughter of Turkeys (000's) 75,307 N/A 0.2%Actual RTC Pounds of Turkeys (000's) 95,296 -6.6% -10.0%YTD RTC Pounds of Turkeys (000's) 1,983,988 N/A -1.3%

Combined Regional Large Eggs (cents/dozen) 96.63 -2.0% 93.6%National Shell Egg Inventory (30 doz. Cases/000,s) 1,454.80 6.8% N/AShell Egg Demand Indicator (SEDI) 11.60 0.21 21.20Central States Breaking Stock Av. Price (cents/dozen) 29.00 56.8% 52.6%National Breaking Stock Inventory (30 doz. Cases/000's) 247.5 -6.6% N/AEggs Broken Under Federal Inspection (30 doz cases) 1,156,640 -0.3% -28.4%YTD Eggs Broken Under Federal Inspection (30 doz cases) 27,705,475 N/A -6.5%

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

May 18, 2020

Current WeekChange From

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Past YearGrain

Broilers

Turkeys

Eggs

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

2020 2019 5-year

75.00

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85.00

90.00

95.00

100.00

105.00

110.00


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


Weekly Combined Regional Large Egg Price (Cents/Dozen)

2020 2019 5-year

Source: USDA AMS Agricultural Analytics Division Page 1 Any opinions expressed represent those of the authors for the limited purpose of this newsletter and do not represent the official position of the Department.

A monthly publication of the USDA AMS, Livestock and Poultry, Agricultural Analytics Division Volume 5-20 May 2020

EGGS

Production

Production indicators for March preceded much of the recent market events associated with the covid-19 outbreak. Compared with February 2020, March egg production rose 6.4 percent to 690.4 million dozen, broiler-type hatching egg production fell 7.1 percent to 95.8 million dozen, and egg-type hatching eggs fell 6 percent to 7.5 million dozen. Compared with March 2019, however, egg production was down 2.1 percent, broiler-type hatching egg production rose 3.1 percent, and egg-type hatching eggs rose 11.8 percent. Stocks showed modest mixed adjustments. Compared with March first-of-the-month figures, table-egg layers held steady in April at 330.8 million, broiler hatching-egg layers rose 1.5 percent to 61.8 million, and egg-type hatching-egg layers rose 1.4 percent to 3.4 million. Compared to April 2019, table-egg layers fell 4 percent, broiler hatching-egg layers rose 4 percent, and egg-type hatching-egg layers rose 1 percent. Pullets added during March for all types of egg production was 27.9 million, up 2 percent monthly, but down 1 percent annually.

Price

Egg prices peaked in late March amidst stockpiling and panic buying over the covid-19 outbreak. While weekly prices fell steadily in April across both table and breaking eggs, the residual effect of this price spike kept monthly average prices high. Compared to March, the April price for a dozen Large Grade A eggs in the New York wholesale market rose 10 percent to 214 cents per dozen, the National Index Price fell 44 percent to 86.9 cents per dozen, and the Central States Breaking Stock price fell 38 percent to 39 cents per dozen.

International Trade

U.S. table shell egg exports in March totaled 9.3 million dozen, up 9 percent from February but down 19 percent from March 2019. The export value was $11.2 million, up 55 percent monthly and 20 percent yearly. At 3.3 thousand metric tons, the volume of egg products exported was down 24 percent monthly but up 38 percent from March 2019. Egg product exports in March were valued at $11.1 million, down 16 percent from February and 5 percent from March last year. Canada, Hong Kong, Mexico, and Canada respectively comprised 48, 26, and 10 percent of all egg exports by value.

TURKEY

Production

The U.S. produced 507 million pounds of turkey on a ready-to-cook basis in March, up 13 percent monthly and 6.2 percent yearly. Turkey eggs in incubators on the first of April were down 1.5 percent monthly and 2.3 percent year on year at 27.5 million eggs. March poult placements were up 3 percent on a monthly basis and down 3 percent year-over-year, at 21.4 million. Although total turkey in cold storage rose 14 percent to 389 million pounds on a monthly basis, this figure is down 17 percent year on year. Across categories, turkey stocks were down from March 2019 levels. Total stocks of whole frozen birds, hens, and toms were down 27, 37, and 15 percent, respectively, from last year. Breast meat and leg meat stocks were down 14 and 19 percent year-over-year.

Price

Prices rose modestly in April for both fresh and frozen turkeys. Fresh toms and hens rose 1 and 2 percent over the March 2020 prices to 120 cents per lb. respectively. Frozen toms and hens both rose 2 percent to 101 and 102. Compared to their April 2019 prices, the fresh tom and hen prices rose 12 percent and frozen tom and hen prices rose 23 and 21 percent respectively. For individual cuts, on a monthly basis, the fresh tom breast price fell 15 percent to 147 cents per lb., the fresh boneless, skinless thigh meat fell 19 percent to 109 cents per lb., and the fresh drumstick price fell 7 percent to 69 cents per lb. On a year-to-year basis, the breast price fell 29 percent, the thigh price fell 10 percent, and the drumstick price fell 10 percent.

International Trade

In March 2020, the U.S. exported 23.5 thousand metric tons of turkey products with a value of $56 million. On a month-to-month basis, the volume and value of exports was up 19 and 15 percent, but on a yearly basis these values were down 3 and 10 percent. Mexico imported 37 thousand metric tons of U.S. turkey meat and accounted for 66 percent of U.S. exports.


CHICKEN

Production

Production volume of young chicken in March 2019 (ready-to-cook weight) totaled 4.42 billion pounds, up 12 percent from March 2019 and up 13 percent from February 2020. Both eggs set and chicks placed in April 2020 were 10 percent lower on a monthly basis and 6 percent lower on a year-to-year basis.

Total stocks of chicken in cold storage at the end of March were 925 million pounds, down 3 percent from the end of February 2020 and up 7 percent from March 2019.

Stocks of whole broilers were up 1 percent from the previous month and up 3 percent from the year before. As measured on yearly basis, thighs, breasts and leg quarters increased stocks in cold storage while wings and drumsticks decreased them. Bone-in thighs in cold storage were up 21 percent monthly and 37 percent monthly. Similarly, breasts in cold storage were up 2 percent monthly and 27 percent yearly. Drumstick stocks were down 8 percent monthly and 2 percent yearly. Cold storage of wings were up 5 percent monthly and down 13 percent yearly. Stock of leg quarters were down 12 percent monthly and up 25 percent yearly.

Price

The steep decline in restaurant and food service demand for food associated with the covid-19 outbreak was apparent in sharp declines in April prices for several chicken parts. Whole broiler prices were down 33 percent from March 2020 levels to 54 cents per lb. and 45 percent below the April 2019 price. Boneless, skinless breast prices fell 19 percent monthly and 29 percent year-on-year to 91 cents per lb. Wing prices fell 39 monthly and 48 percent year-on-year to 104 cents per lb. Bulk leg quarter prices fell 4 cents to 33 cents per lb., lower by 9 percent monthly and 20 percent yearly. Boneless, skinless thigh meat prices fell 7 percent monthly and 20 percent yearly to 95 cents per lb. Bone-in thighs rose 6 percent monthly but fell 5 percent yearly to 72 cents per lb. Drumsticks alone gained saw annual price gains with the its price rising 4 percent monthly and 30 percent yearly to 46 cents per lb.

International Trade

March exports of chicken and chicken products totaled 308 thousand metric tons valued at $300 million. This is an increase of 17 percent in volume and 11 percent in value on a month-to-month basis and 15 percent in volume and 18 percent in value on a year-to-year basis. Mexico, Canada, Taiwan, Cuba, and China were the top 5 importers of U.S. broiler meat.

BEEF/VEAL

Production

March 2020 beef production, at 2.41 billion pounds, was a record high for the month of March, 14 percent higher than March 2019 and 13 percent above February 2019. Cattle slaughter was 2.92 million head, up 10 percent year-over-year and 13 percent higher monthly. The average live weight was up 29 pounds from last year and 8 pounds lower than February at 1,368 pounds. Veal production in March 2020 was 5.8 million pounds, 14 percent higher year-over-year, and steady with February. Calf slaughter was 43,200 head, down 6 percent yearly but up 9 percent from February. The average live weight was up 13 pounds yearly and 8 percent monthly at 232 pounds. Total beef in cold storage at the end of March was up 11 percent compared with the end of March 2019, and up 2 percent compared with February. Stocks of boneless beef were up 1 percent on a monthly basis and up 11 percent yearly, while beef cuts were up 4 percent month-over-month and up 20 percent year-over-year. Veal stocks in freezers rose 4 percent relative to February and 10 percent yearly.

Price

Live cattle prices (FOB, steers and heifers) in April 2020 lost $11, falling to $101 per cwt., 10 percent below March 2020 and down 20 percent from the April 2019 price. The monthly average beef cutout value jumped $28 per cwt., to $259 per cwt., up 13 percent from both March and last April. The 90 percent lean boneless beef monthly average price added 8 percent ($17.00) to the previous monthly price, to $245 per cwt., 12 percent higher year-over-year. The 50 percent lean trim prices gained $18 to $73 per cwt., up 33 percent from March and down 18 percent from last year. The average prices for hide-off veal carcasses fell $13 to $292 per cwt., down 4 percent yearly and monthly.

International Trade

Compared to 2019, March 2020 beef and veal exports (including variety meats) were up 7 percent at 115 thousand MT while the export value was 4 percent higher at $702 million. The export volume and value were both 3 percent above February. In March South Korea, Japan, Canada, Mexico and Taiwan were our largest export markets, with Japan purchasing about one-fourth of the export volume. Year-over-year beef import volumes for March gained 11 percent compared to last year for a total of 107 thousand MT and were 12 percent higher in value at $615 million. On a monthly basis volume increased 28 percent and value rose 23 percent. Canada, Australia, Mexico and New Zealand imported e beef volume sent to the U.S. in March 2020.


PORK

Production

Pork production in March totaled 2.57 billion pounds, 11 percent higher monthly and 12 percent higher yearly for yet another monthly record high production volume. The number of hogs slaughtered was 11.9 million head, up 11 percent from both March 2019 and February 2020. The average live weight was up 1 pound from last year and equal to last month at 288 pounds.

Total stocks of pork in cold storage at the end of March were down 4 percent from February but 2 percent higher than last year. Ham inventories fell 23 percent month-over-month with Easter demand looming, but were also down 15 percent year-over-year, with stocks of bone-in hams falling 31 percent monthly and 14 percent yearly, and boneless hams down 19 percent and 15 percent, respectively. Belly inventories added 6 percent monthly and 34 percent from last year. Total loin stocks fell 5 percent for the month but rose 11 percent yearly. Pork rib stocks slid 2 percent monthly and lost 3 percent from 2019. Pork trimmings in freezers were 1 percent above February and 7 percent higher than last year.

Price

The monthly average negotiated carcass price for barrows and gilts in April 2020 lost $16 per/lb. to $39 per cwt., 29 percent lower monthly and down 49 percent yearly. The pork cutout value fell $7 in April to a monthly average of $65 per cwt., 11 percent lower than March and 23 percent below April 2019. The monthly average price for trimmed, bone-in hams, 23-27 pounds dropped $20 to $35 per cwt., 36 percent lower monthly, and down 47 percent from last year. Prices for picnic meat combos, cushion out, lost $26 to $73 per cwt., 27 percent lower monthly, and 21 percent below 2019. 72 percent lean pork trimmings prices also shed $26 per cwt. averaging $43 per cwt., down 38 percent from March and 51 percent from last April. Pork belly primal values gained $3 per cwt. to $77 per cwt., up 4 percent monthly and down 38 percent yearly.

International Trade

Pork exports (including variety meats) in March 2020 gained 38 percent over March 2019 at 285 thousand metric tons and rose 49 percent in value to $733 million. Compared to February, export volume was up 7 percent, and value was up 6 percent. China, Japan, Mexico Canada and South Korea were our largest export markets with 32 percent of pork export volume going to China. Compared to last year, March pork imports were 26 percent lower in volume at 31 thousand MT, and 16 percent lower in value at $116 million. Import volume was down 2 percent from February while value was 1 percent lower. Canada, Italy, Poland, Denmark and Mexico were the top importers of pork to the U.S. Canada was the source of more than two-thirds of pork imports.

LAMB

Production

March lamb and mutton production, at 12.2 million pounds, was down 6 percent from March 2019 but up 14 percent from February. Sheep slaughter totaled 187,500 head, 14 percent higher than February but down 2 percent from last year. The average live weight was 131 pounds, up 1 pound from last month and down 6 pounds yearly. Lamb stocks in cold storage were 24 percent higher than 2019 and 3 percent higher on a monthly basis.

Price

April negotiated live slaughter lamb prices were not reported due to confidentiality. The average lamb cutout value lost $3 for a monthly average of $427 per cwt., down 1 percent from March but up 12 percent from last April. The monthly average price for leg of lamb, trotter-off fell $5 to $383 per cwt., down 1 percent monthly but up 6 percent from last April. The average price for lamb shoulder (IMPS 207) in April increased $5, up 1 percent from the month before at $337 per cwt. and up 19 percent from April 2019. Trimmed 4x4 loins lost $28 to $496 per cwt., 5 percent below March 4 percent below last year.

International Trade

The U.S. lamb export volume saw a sharp jump of 371 percent in March relative to February, and a leap of more than 600 percent yearly, sending almost 1,000 more metric tons of lamb meat, or 1,237 metric tons, overseas. The export sales value was 73 percent higher monthly and up 41 percent yearly at $1.9 million. Mexico, the Leeward-Windward Islands, and the Turks and Caicos Islands were the top destinations for U.S. lamb and mutton. Imports of lamb to the U.S. rose 55 percent lower in March compared to February at 18 thousand metric tons, while the value of imports jumped 65 percent to $122 million. Year-over-year imports were up 47 percent in volume and up 9 percent in value. Australia, New Zealand and Chile are the top three lamb meat importing countries to the U.S. In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.


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Monthly Negotiated Barrow/Gilt Prices2020 2019 2016-2018 avg

ThePlasticsExchange

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Market Update — May 15th

, 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 15,900,816 lbs

Resin Total lbs Low High Bid Offer

LLDPE - Film 3,411,440 $ 0.310 $ 0.410 $ 0.320 $ 0.360

PP Homo - Inj 2,306,564 $ 0.370 $ 0.460 $ 0.400 $ 0.440

PP Copo - Inj 2,158,484 $ 0.390 $ 0.480 $ 0.420 $ 0.460

HDPE - Inj 2,103,312 $ 0.320 $ 0.400 $ 0.320 $ 0.360

HDPE - Blow 1,707,036 $ 0.310 $ 0.390 $ 0.340 $ 0.380

HMWPE - Film 1,363,656 $ 0.320 $ 0.390 $ 0.340 $ 0.380

LDPE - Inj 1,135,932 $ 0.390 $ 0.495 $ 0.460 $ 0.500

LLDPE - Inj 975,288 $ 0.400 $ 0.460 $ 0.400 $ 0.440

LDPE - Inj 739,104 $ 0.400 $ 0.480 $ 0.420 $ 0.460

TPE IndexSpot Range

HDPE Blow Molding

1 Year

PP Homopolymer

1 Year

Spot plastics trading continued to improve, demand was much better as an increasing number of temporarily shuttered manufacturing facilities returned to operation, requiring resin to run. Trade flow from both buyers and sellers was fluid this week and our transacted volumes rivaled the average tally seen during the strong first quarter of 2020. Recovering energy and feedstock costs have added some fuel to the fire, aiding market sentiment which has been shifting from fiercely negative to somewhat positive. Producers have been doing their part to maintain supply/demand balance by reducing resin production to keep an overly burdensome inventory overhang from developing. They also reacted quickly to ratchet down pricing as needed to maintain historically high exports. Now that the market has started to return to a more normal state, Houston Polyethylene prices have lifted a couple cents and the domestic $.04/lb April decrease could be the total contract relief afforded downstream. Although May is still in play, a number of producers have already nominated a $.04/lb increase for June. Polypropylene contracts had shed a deuce in April while firmer monomer has been dashing hopes for an additional decline in May. The major energy markets maintained their volatile ways, trading in as much as a 20% range, while prices ultimately settled in opposite directions. WTI Crude Oil rolled to July and continued its incredible recovery rally ever since the May futures contract plunged deep into negative territory amid fears of insufficient storage capacity, what a difference a month can make. July WTI futures snugged up to $30/bbl, but did not breach the psychological resistance level, it ended this week at $29.52/bbl, up $3.35/bbl. Brent Oil did not fall as much as WTI did last month and has lagged a bit on the rebound, July Brent gained $1.53/bbl to end the week at $32.50/bbl. Nat Gas futures also rolled to July and failed to hold the $2 level, losing a hefty $.244/mmBtu to close Friday at $1.833/mmBtu. NGLs rallied further, building on previous gains. Ethane added $.018/gal to $.218/gal ($.092/lb). Propane soared almost a nickel to $.423/gal ($.12/lb).

Activity quieted down in the monomer markets, volume was a bit below average and prices were mixed. Ethylene saw good trader interest early in the week and prompt material changed hands in Louisiana, while Ethylene in Houston saw deals completed for future deliveries. Bids and offers continued to pepper the market through midweek, but prices were too far apart to visibly complete voluminous deals. On Friday, traders turned their attention to June and several transactions were executed at a tad above $.12/lb. The rest of the market tagged along and at the end of the day May Ethylene was pulled higher to nearly $.12/lb. The deferred months saw larger gains, steepening the forward curve contango which now peaks at $.16/lb for the 4th quarter of 2021. Propylene remained rather steady throughout the week. Participants focused mostly on prompt May where multiple deals were finalized at $.23/lb, with a few transactions for future deliveries also seen. The PGP curve is also in contango with prices reaching $.285/lb by the end of 2021. Friday saw prompt prices pull back a tad and May PGP settled around $.225/lb. Current spot levels would indicate no significant change for upcoming May PGP contracts.

The Spot Polyethylene market continued to gather steam and approached pre-pandemic activity levels as more of the US began to reopen from stay at home orders. Our trading desk was once again busy working the growing number of sourcing requests that came to our platform and transaction levels reached the realm of our 2019 averages. Spot pricing had a very firm undertone and the low end of the spectrum cleaned up, though it was not enough to move the needle and our prices held flat across the board. Although truckload orders still dominated over our railcar sales, the feeling of normalcy seemed to return and the deal flow felt natural; some customers bought more than their normal volumes taking advantage of these especially low prices. On the supply side - the market changed quite quickly from very loose to fairly tight after huge quantities of resin moved directly into the export abyss. So many export orders were booked that container space to Asia is already very limited until July. These huge export sales, nearly 2 billion lbs in April, representing about 42% of total PE sales, soaked up spot supplies and several producers claim to be sold out of many grades. After 5 months of upstream resin inventory builds, producers collectively pulled down around 270 million lbs in April. Given these comeback conditions, and the fresh $.04/lb increase nominated for June, it would be surprising to see another decrease come out of the contract market in May.

Spot Polypropylene trading was good, but not great, demand lagged a tad and there was sufficient supply to meet our incoming resin requests. Sectors of the Polypropylene market are still slow, but automotive manufacturing facilities are poised to re-open which should enable fresh demand. The reseller community still has some inventory to shed and few are excited to procure more material to just add to their PP stocks, which has likely contributed to the overall slack buying. While firming monomer costs point to a likely rollover for May PP contracts, spot prices for both HoPP and CoPP remain slightly discounted, presenting good opportunities. As time ticks and more manufacturing resumes, we believe the market will work through the supply overhang, which is not too large. As we saw a quick shift in Polyethylene supply/demand dynamics, these markets could change very quickly. For now, there are still some sharp deals out there.

05/22/2020

Dairy Market

BLOCK: Unchanged @ $ 1.9375 4 SalesBARRELS: Unchanged @ $ 1.8900 25 SalesBUTTER: Down .0500 @ $ 1.5925 3 SalesNFDM Grade A: Down .0025 @ $ 1.0125 12 SalesCME Dry Whey Unchanged @ $ .3625 0 Sales

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

05/18/2020 1.8150 Up .0350 0 1.7375 Up .0175 11 0.0775

05/19/2020 1.8500 Up .0350 0 1.7825 Up .0450 5 0.0675

05/20/2020 1.9200 Up .0700 0 1.8525 Up .0700 8 0.0675

05/21/2020 1.9375 Up .0175 0 1.8900 Up .0375 0 0.0475

05/22/2020 1.9375 Unchanged 4 1.8900 Unchanged 25 0.0475

Average Market: 1.8920 4 1.8305 49

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

05/18/2020 1.6050 Down .0400 0 0.9400 Up .0050 6

05/19/2020 1.6050 Unchanged 0 0.9850 Up .0450 5

05/20/2020 1.6350 Up .0300 13 0.9950 Up .0100 1

05/21/2020 1.6425 Up .0075 6 1.0150 Up .0200 4

05/22/2020 1.5925 Down .0500 3 1.0125 Down .0025 12

Average Market: 1.6160 22 0.9895 28

Date Dry Whey Dry Whey Change Dry Whey Sales

05/18/2020 0.3725 Down .0175 8

05/19/2020 0.3625 Down .0100 5

05/20/2020 0.3625 Unchanged 0

05/21/2020 0.3625 Unchanged 0

05/22/2020 0.3625 Unchanged 0

Average Market: 0.3645 13

--Year Ago--

Date Blocks Barrels Butter NFDM Grade A Dry Whey

05/20/2019 1.6725 1.6250 2.3400 1.0450 0.3500

05/21/2019 1.6800 1.6025 2.3275 1.0475 0.3700

05/22/2019 1.6825 1.6025 2.3400 1.0475 0.3650

05/23/2019 1.6825 1.6150 2.3875 1.0525 0.3575

05/24/2019 1.6825 1.5800 2.3875 1.0450 0.3600

THE OUTLOOK.Seneca Foods Corporation's crop report newsletter for our valued customers.

M A Y 2 0 2 0 , V O L . 1 3

As we continue to face uncertain times, the cannery business ismoving full-steam ahead and (almost) business as usual. We areworking to keep grocery shelves stocked as well as prepare for thenew pack. As a company we are facing many challenges ahead,with our dedicated workforce and leadership team we areprepared to face these challenges head on. We are taking stepswithin our locations to protect our workforce as well as the public. Our canneries are busy cleaning, repairing and prepping for thepack season ahead as well as enforcing our new policies inresponse to the current pandemic.

2020 Pack Season

COVID-19 RESPONSE

PLANTINGS UPDATE

WEATHER SNAPSHOTS

I N T H I S I S S U E

In response to the COVID-19 pandemic that has taken our world by storm our plants areimplementing a number of safety precautions including daily body temperature checks, mandatoryuse of face masks/shields, maintaining 6 feet of separation where possible and regular sanitation ofall surfaces. Past pack seasons we were able to welcome visitors to our locations and took greatpride in showing all of you what we can do; in an effort to protect our workforce as well as ourvisitors we will not be conducting tours or visits at any of our locations during the 2020 pack season.We greatly appreciate all of our customers and can't wait to be able to welcome you back into ourfacilities in the future.

COVID-19 Response

P H O T O B Y S E N E C A E M P L O Y E E S C O T T J A C O B S O N : P E A B L O S S O M

PEAS

Cold temperatures have slowed pea planting in all areas, over 60% currently planted. All

pea fields in Illinois have emerged with good stands. Freezing temperatures, followed by

steady rain these past weeks will have adverse effects on the first planted peas, creating

variable maturity in those fields come harvest time, we will continue to monitor in the

coming weeks.

SWEET CORN

Corn planting in all areas continues at a slow pace. Warmer, normal temperatures in the

coming days and weeks are expected. The freezing temperatures will not impact the sweet

corn as it had not emerged from the soil yet.

SNAP BEANS

12% planted overall. Planting in NY and WI has now begun. First planted beans in IL and IA

are emerging with decent stands.

RED BEETS

69% planted overall. Early plantings have emerged and stands look decent.

CHERRIES

OR: Progressing on schedule and appears to be a budget crop at this early stage.

MI: After enduring three straight nights of below freezing temperatures there has been

damage noted in most regions, it is too early to tell what the overall effect will be on the

2020 crop. Harvest currently projects to begin the first part of July.

WA: Progressing on schedule at this point in time.

CA: Early indications for the 2020 crop are that it will be below budget. The bloom was

weak due to cool temperatures and wet conditions at the time of bloom. Brine cherry

harvest will begin at the end of the May.

ADDITIONAL CROP PLANTINGS

Currently planting carrots and Lima beans, weather permitting, early this week as the

weather warms up to more normal levels.

PLANTING PROGRESS REPORT

Notes through 5/19/20

P H O T O B Y S E N E C A E M P L O Y E E S C O T T J A C O B S O N

Crop Moisture Index

For the week ending May 9th, as can be seen by the Crop Moisture Index, the growing area in NY,

WI, and MN are working with favorable soil moisture conditions to even slightly too dry in some

isolated areas; however, subsoil moisture levels are still quite high. Growing areas in IL, MO, and AR

on the other hand, continue to be on the damp/wet side. Conditions in the Northwest part of the

country continue to be favorable and even on the dry side, especially through the Columbia River

Basin along the Oregon/Washington border.

90 Day Precipitation Outlook

The outlook for rains through the Midwest are for a slightly to moderately elevated amount of

precipitation across the growing areas through July, though looking at the forecast for May, things

look to actually be somewhat below normal for precipitation forecast. Forecasts for NY also look to

have an elevated probability of precipitation through July, and looks to have a relatively normal

amount during May, for the most part. The Pacific Northwest continues to project below normal

precipitation through July, while most parts do look to see relatively normal chances of rain for the

remainder of May.

90 Day Temperature Outlook

Temperatures forecast for the majority of WI/MN/IL growing areas look to stay relatively normal

over the next three months, though for the remainder of May, temperatures do stay a little cooler.

NY temperatures forecast through July look to be moderately warmer than normal as do the

temperatures in the Northwest.

WEATHER SNAPSHOTS

M A Y 2 0 2 0 , V O L . 1 3

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