Ketchup concerns

The commodity markets remained somewhat erratic last week with beef prices historically high but numerous other markets including chicken wings, many pork cuts and now table eggs showing historical value. So table egg prices declined Tom Petty style ("Free Fallin") again last week with the large table egg wholesale market for the U.S. nearing $1 per dozen. Since peaking in front of Easter, the large table egg market has fallen 70 (think: Patric Hornqvist...and how about those Panthers) percent to their lowest level since the fall of 2021.

So I know what you're thinking: "Hey...didn't David Maloni say that egg prices wouldn't be near a Buck until 2024?" And yes, you would be right as I was wrong (cue thoughts of the Fonz trying to say he was wrong ). Egg consumption has slowed considerably driving prices lower despite the historically small production. Funny what high prices will do eh?

Retail egg features have basically been nonexistent up until a few weeks ago. But now they are on the rise which could temper any further near term downside in the egg markets. But hey....I've been know to be wrong. I like to think only once in a while but my kids will tell you differently (especially the teens).

Tomato for processing planting has been wronged by wet weather in California. Concerns are building that the crops could be short which would impact numerous foodservice and consumer product supplies including ketchup, salsa and tomato sauce. There are some reasons to be optimistic. First, the average contracted tomato for processing price to farmers is up Peter Gabriel style ("Big Time") this year. So, in other words, the farmers have more incentive to salvage as much of their crops as they can. Further, acreage is up substantially as well which suggests there is at least some room for error. But we really won't know the impact until we get deep into the harvest this summer.

Datum FS has forecasts for over 50 commodities comprising various beef, dairy, grains, pork and chicken markets. If you would like to learn more about a complimentary trial to the forecasts and commentary or about Datum FS services direct message me or visit www.datumfs.com . Thanks for reading.