Supply chain better than pre Covid?

The commodity markets were performing like the "Tone Rangers " last week with the cheese markets off key, the pork belly and chicken wing markets singing alto (low), and beef and corn singing soprano (high). CME cheese blocks continued to trade below CME cheese barrels which is not the norm. Corn prices remained relatively firm despite the USDA not making any changes to their 2023-24 domestic harvest projections last week. But corn and soybean crop ratings declined again this week and remain below year ago levels. Stay tuned.

There has been a lot of good news around the foodservice supply chain this year including a lower commodity basket, declining freight rates, and improving trade conditions. This is driving the Datum FS Foodservice Supply Chain Stress Index downward. As a matter of fact, and you know I love those, the index this spring was the lowest in 48 (think Tori Hunter) months. In other words, the overall stress levels in the foodservice supply chain have eased considerably.

But there are still a few risks in the supply chain with one of the biggest being beef. The USDA did update their 2023 and 2024 beef supply forecasts last week but generally the news is not encouraging. Beef output next year is projected to decline to its lowest level since 2015 and to its third lowest level in nearly two decades. And, oh by the way, 2024 per capita beef production in the U.S. could fall to its lowest level since the New York Yankees won their fourth straight World Series in 1952.

Datum FS has research and 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 visit?www.datumfs.com . Thanks for reading.