WEEKLY MARKET TRENDS REPORT

July 19, 2013

Individual Reports on: Beef, Veal and Lamb Oil and Grains Dairy Pork Canned Tomato Poultry Seafood Bean, Rice, Coffee and Sugar Processed Fruits and Vegetables Produce

Beef, Veal and Lamb Report

Beef, Veal & Lamb- Beef production last week was .3% less than the same week a year
ago. The USDA is projecting summer beef output to trend 1.6% below 2012. Many of the beef middle meat steak cut markets continue to depreciate due to weak demand. This is due in a large part to inflated retail prices. In June, retail beef prices were 1.4% higher than last year and a record. Last year the 180 choice 0x1 beef strip market did not make its summer bottom until the last week of July. The 50% beef trim market is firm due to tight supplies. Fairly inflated 50% beef trim prices could persist into August. Price USDA, FOB per pound.

Live Cattle (Steer) Ground Beef 81/19 Ground Chuck 109 Export Rib (choice) 109 Export Rib (prime) 112a Ribeye (choice) 112a Ribeye (prime) 116 Chuck (choice) 120 Brisket (choice) 121c Outside Skirt (ch/sel.) 167a Knckle, Trimmed (choice) 168 Inside Round (choice) 174 Short Loin (choice 0x1) 174 Short Loin (prime 2x3) 180 1x1 Strip (choice) 180 1x1 Strip (prime) 180 0x1 Strip (choice) 184 Top Butt, boneless (choice) 184 Top Butt, boneless (prime) 185a Sirloin Flap (choice) 185c Loin, Tri-Tip (choice) 189a Tender (select, 5 lb & up) 189a Tender (choice, 5 lb &up) 189a Tender (prime, heavy) 193 Flank Steak (choice) 50% Trimmings 65% Trimmings 75% Trimmings 85% Trimmings 90% Trimmings

Market Trend Decreasing Decreasing Decreasing Decreasing Increasing Decreasing Decreasing Increasing Decreasing Decreasing Increasing Increasing Decreasing Decreasing Decreasing Increasing Decreasing Increasing Decreasing Decreasing Increasing Decreasing Decreasing Increasing Increasing Increasing Decreasing Increasing Increasing Increasing

Supplies Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Higher Higher Lower Lower Lower Lower Higher Lower Lower Lower Higher Lower Lower Lower Lower Lower Lower Lower Lower Lower Higher Higher Lower Higher Higher Higher Higher Higher Lower

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90% Imported Beef (frozen) Veal Rack (Hotel 7 rib) Veal Top Round (cap off)

Increasing Steady Steady

Good Good Good

Lower Higher Higher

Oil and Grains Report

Oil & Grains- Soybean oil prices are trending near three year lows due in part to ample world food oil supplies. The near term downside soybean oil price risk may only be modest.

Soybeans Crude Soybean Oil Soymeal Corn Crude Corn Oil Distillers Grain, Dry Crude Palm Oil Hard Red Winter Wheat Dark Northern Spring Wheat High Fructose Corn Syrup Durum Wheat

Market Trend Decreasing Decreasing Increasing Decreasing Steady Decreasing Decreasing Steady Decreasing Decreasing Increasing

Supplies Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Lower Lower Higher Lower Lower Lower Lower Lower Lower Lower Lower

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Dairy Report
Dairy- CME butter prices have softened during the last week due in a large part to the existing burdensome stocks. May U.S. butter holdings were 23.5% more than last year the largest for the month since 1993. Still, international butter prices remain inflated. Further, domestic milk production is seasonally declining. These factors could influence the butter market modestly higher in the coming weeks. The CME cheese markets remain range bound due in part to adequate inventories. History suggests that moderate cheese market increases may be forthcoming.

Market Trend Cheese Barrels- CME Cheese 40 lb Blocks- CME American Cheese Cheddar Cheese Mozzarella Cheese Provolone Cheese Parmesan Cheese Butter- One lb Solids Nonfat Dry Milk Whey, Dry Class I Milk Base Class II Cream (Heavy Cream) Class III Milk- CME Class IV Milk- CME Decreasing Increasing Increasing Increasing Increasing Increasing Increasing Decreasing Increasing Decreasing Steady Decreasing Decreasing Decreasing

Supplies Good Good Good Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Lower Lower Higher Higher Higher Lower Higher Lower Lower Higher Higher Lower Higher Higher

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Pork Report
Pork- Pork production last week was 5.3% larger than the same week last year. Hog weights are starting to trend above 2012 levels which signals that hog supplies are becoming more available. Pork output is anticipated to trend modestly above previous year levels in the coming months. Most of the pork markets are weakening as retailers have pulled feature activity for pork this month. Still, relatively inflated wholesale pork prices could persist into August. Notable pork belly price relief may not occur until the fall.

Pork Belly

Price(lb.)

belly-13 belly-12

6/27

7/4

7/11

7/18

7/25

8/1

8/8

8/15

Live Hogs Belly (bacon) Spare Rib (4.25 & down) Ham (23-27 lb) Loin (bone-in) Baby Back Rib (1.75 & up) Tenderloin (1.25 lb) Boston Butt, untrimmed 4-8 lb. Picnic, untrimmed SS Picnic, smoker trim boxed 42% Trimmings 72% Trimmings

Market Trend Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Increasing Increasing Decreasing

Supplies Good Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Higher Higher Higher Higher Lower Lower Higher Higher Higher Higher Higher

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Canned Tomato Report

Tomato Products, Canned- The California tomato for canning harvest is tracking 50% ahead of last year. The
canned tomato markets are steady.

Whole Peeled Standard Diced, Fancy Ketchup, 33% Tomato Paste- Ind.

Market Trend Steady Steady Steady Steady

Supplies Good Good Good Good

Price vs. Last Year Same Same Same Same

Poultry Report
Poultry- Chicken output for the week ending July 6th was 1.3% less than last year.
Still, year to date chicken production is tracking 3.1% above 2012. Further, chicken producers appear to be expanding output with broiler egg sets trending at their biggest level above the prior year since 2010. The USDA is projecting third quarter chicken output to be 2.7% larger than last year and their forecast may be too low. The chicken breast markets have been relatively steady as of late and at the highest price levels for mid-July in 9 years. History suggests that these inflated chicken breast prices could propel food service and retail to feature other proteins down the road. The upside price risk for chicken breasts from here is likely nominal.

Whole Chicken (2.5-3 lb-GA) Chicken Wings, Whole Chicken Wings, Jumbo Cut Chicken Breast, Bone-In Chicken Breast, Bnless Sknless Chicken Tender (random) Chicken Tender (sized) Chicken Legs (whole) Chicken Leg Quarters Chicken Thighs, bone in

Market Trend Steady Increasing Increasing Steady Steady Increasing Increasing Increasing Decreasing Increasing

Supplies Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Lower Lower Higher Higher Higher Higher Higher Higher Higher

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Chicken Thighs, boneless Large Eggs Medium Eggs Whole Eggs- Liq Egg Whites- Liq Egg Yolks- Liq Whole Turkey (8-16 lb) Turkey Breast- Bnls/Sknls

Increasing Steady Increasing Increasing Increasing Steady Steady Increasing

Good Good Good Good Good Good Good Good

Higher Higher Higher Higher Higher Higher Lower Lower

Seafood Report
Seafood- Chilean salmon supplies continue to improve.
U.S. salmon filet-steak imports during May were 11% bigger than the same month a year ago. Salmon imports from Chile during May were the largest since March 2005. Favorable currency valuations could cause U.S. salmon imports to remain solid in the coming months which may weigh on salmon prices. May U.S. snow crab imports were 28% more than 2012.

Salmon, Whole (10-12 lb) Catfish, Filets Trout, Drn. (8-14 oz) Shrimp (16-20 count) Shrimp (61-70 count) Shrimp, Tiger (26-30 count) Snow Crab Legs (5-8 oz) Snow Crab Legs (8 oz up) Cod Tails, 3-7 oz. Frz. Cod Loins, 3-12 oz. Frz. Salmon Portions, 4-8 oz. Frz.

Market Trend N/A N/A N/A Increasing Increasing Steady Increasing Increasing Steady Steady Steady

Supplies Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year N/A N/A N/A Higher Higher Higher Higher Higher Lower Lower Higher

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Bean, Rice, Coffee and Sugar Report

Pinto Beans Black Beans Rice, Long Grain Coffee Beans Sugar Honey Market Trend Increasing Increasing Increasing Increasing Decreasing Steady Supplies Good Good Good Good Good Good Price vs. Last Year Lower Lower Higher Lower Lower Higher

Paper Product Report

Wood Pulp (paper)

NBSK- Paper napkin 42 lb. Linerboard-corrugated box

Plastic Resins (plastic, foam)

Market Trend Increasing Increasing Steady Steady

Supplies Good Good Good Good Good

Price vs. Last Year Higher Higher Higher Higher Higher

PS-CHH-utensils, cups, to-go cont. PP-HIGP-heavy grade utensils PE-LLD-can liners, film, bags

Steady

Retail Price Change from Prior Month

Beef and Veal Dairy Pork Chicken Fresh Fish and Seafood Fresh Fruits and Vegetables Apr-13 Decreasing Increasing Decreasing Increasing Increasing Decreasing Mar-13 Increasing Decreasing Increasing Increasing Increasing Decreasing Feb-13 Increasing Increasing Increasing Increasing Increasing Increasing

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Processed Fruits and Vegetables Report

Processed Fruits and Vegetables- The Midwest and Eastern vegetable crops remain behind but are
progressing well. The processed vegetable markets are firm.

Canned 6/10 Corn, Fancy Whole Kernel Green Beans, Fancy 4 sv Green Peas, Fancy 4 sv/blend Frozen Corn, Cob 96 count Corn, Kernel 12/2.5 lb. Green Beans, Cut 12/2 lb. Green Peas, 12/2.5 lb. Potatoes, FF Fancy, 6/5 lb.

Market Trend

Steady
Steady Steady Steady Steady Steady Steady Steady

Supplies Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Lower Higher Lower Higher Higher Higher Lower

Produce Report
Produce- Lettuce supplies remain limited.
Lettuce harvest yields have been negatively impacted by the heat in recent weeks. Expectations are for lettuce shipments to remain below par into next week. Longer term, the National Weather Service is predicting warm and dry weather for California during the next few months which may bring further periodic challenges to the lettuce crops. The chief tomato harvest region in the East continues to shift north. Some modest tomato supply gaps could occur this month. The Idaho potato markets are nearing two year highs.

Limes (150 count)

Market Trend Increasing

Supplies Good

Price vs. Last Year Higher

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Lemons (95 count) Lemons (200 count) Honeydew (6 ct.) Cantaloupe (15 count) Blueberries (12 count) Strawberries (12 pints) Avocados, Hass (48 count) Bananas (40 lb)-Term. Pineapple (7 ct.)- Term. Idaho Potato (60 count) Idaho Potato (70 count) Idaho Potato (70 count)-Term. Idaho Potato (90 count) Idaho Potato #2 (6 oz. min.) Processing Potato (100 lb) Yellow Onions (50 lb) Yellow Onions (50 lb)-Term. Red Onions (25 lb)-Term. White Onions (50 lb)-Term. Tomatoes, (large- case) Tomatoes, (5x6, 25 lb.)-Term. Tomatoes, Vine Ripe, (4x5) Roma Tomatoes (large- case) Roma Tomatoes (xlarge- case) Green Peppers (large- case) Red Peppers (large- 15 lb. cs.) Iceberg Lettuce (24 count) Iceberg Lettuce (24 cnt)-Term.

Increasing Increasing Decreasing Decreasing Decreasing Decreasing Steady Increasing Increasing Increasing Increasing Increasing Increasing Increasing Steady Increasing Increasing Decreasing Decreasing Increasing Increasing Increasing Increasing Increasing Increasing Steady Increasing Increasing

Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good

Higher Lower Lower Higher Lower Higher Higher Lower Higher Higher Higher Higher Higher Higher Lower Lower Lower Lower Lower Higher Higher Higher Higher Higher Higher Higher Higher Higher

Produce Report (continued)

Leaf Lettuce (24 count) Romaine Lettuce (24 count) Mesculin Mix (3 lb)-Term. Broccoli (14 cnt.) Squash (case) Zucchini (case) Green Beans (bushel) Spinach, Flat 24's Mushrooms (large), Term. Cucumbers, Bushel Pickles (200-300 ct.)-Term. Asparagus (small) Freight (CA to City Avg.) Increasing Increasing Increasing Decreasing Increasing Increasing Decreasing Increasing Increasing Decreasing Increasing Increasing Increasing Good Good Good Good Good Good Good Good Good Good Good Good Good Higher Lower Higher Higher Higher Higher Lower Higher Higher Higher Higher Higher Higher

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411