WEEKLY MARKET TRENDS REPORT

December 14, 2012

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 output last week increased .9% and was 1.3% larger than the
same week in '11. Beef production is being curbed this week which is supporting beef prices. In Oct, U.S. beef exports were down 3.4% but were 14% larger than the previous month. Russia may restrict U.S. beef imports due in part to an ongoing trade dispute. In '11, beef exports to Russia were 5% of total U.S. beef exports but only .4% of the U.S. beef output. This shouldn't have a major impact on overall beef prices but could be slightly negative for typical beef trade items with Russia including fat trim, inside rounds and knuckles.

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

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

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

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

Decreasing Steady Steady

Good Good Good

Higher Higher Higher

Oil and Grains Report
Oil & Grains- The National Weather Service is calling for dry conditions to persist through Feb for U.S. winter
wheat country. This could support wheat prices this winter.

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 Decreasing Decreasing Decreasing Decreasing

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

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

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

Dairy Report
Dairy- The CME butter market is steady. Butter exports in Oct were up 48% and the highest since May.
International butter prices have risen recently which is supportive of U.S. butter exports. The butter market may make an early bottom this year. The CME cheese markets are soft. Oct cheese exports were 13% above '11 and a new record for the month. Since Oct, the export environment for U.S. cheese has become more favorable. The CME cheese market typically falls 8.7% over last two weeks of the year. Any further declines this year should be less intense.

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

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

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

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

Pork Report
Pork- Pork production last week declined 1.3% and was .2% larger than the same week last year. Pork exports
during Oct were up 3.4% versus a year ago and were the second highest since Nov '11. Russia may be curbing pork imports from the U.S. Domestic pork trade with Russia last year was 4% of total U.S. pork exports but only .6% of U.S. pork output. Restricted pork trade with Russia could slightly improve supplies of usual pork export items including hams, trim, loins and butts. The ham markets are seasonally declining.

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 Steady Increasing Decreasing Decreasing Increasing Increasing Decreasing Decreasing Decreasing Decreasing Increasing

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

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

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

Canned Tomato Report
Tomato Products, Canned- Existing canned tomato supplies are adequate. Canned tomato prices could remain
relatively steady through the winter.

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- U.S. chicken exports in Oct were 6% less than the prior year but the largest in
twelve months due in part to a relatively deflated U.S. dollar. If a weaker U.S. dollar persists into next year, it could support chicken leg quarter prices. The USDA is forecasting 1st quarter '13 chicken production to be 1% less than '12. Broiler egg set data as of late has not established a clear trend which conflicts with the USDA's output projection for this winter. The chicken wing markets typically remain sideways during the next two weeks but then rise 10% in Jan. The boneless skinless chicken breast markets usually appreciate next month as well but any increases this year may be tempered. The liquid egg markets may have peaked.

Whole Chicken (2.5-3 lb-GA) Whole Chicken (LA) 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

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

Supplies Good Good Good Good Good Good Good Good Good Good

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

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

Chicken Thighs, bone in 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 Decreasing Steady Decreasing Steady Decreasing Decreasing Decreasing Decreasing

Good Good Good Good Good Good Good Good Good

Higher Same Higher Higher Higher Lower Higher Lower Lower

Seafood Report
Seafood- Most shrimp markets remain below year ago levels. In Oct, U.S. total shrimp
imports and shell-on shrimp imports were down 20% and 16% respectively versus last year. Year-to-date U.S. shrimp imports through Oct were down roughly 8% compared to '11. If the U.S. dollar continues to trade at relatively weak levels, it could cause fairly lackluster shrimp imports to persist, bringing support to the shrimp markets in Q1.

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 Steady Steady Steady Increasing Steady Steady Steady Steady Steady Steady Steady

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

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

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 Decreasing Decreasing Steady Decreasing Decreasing Decreasing Supplies Good Good Good Good Good Good Price vs. Last Year Lower Lower Lower Lower Lower Higher

Paper Product Report
Wood Pulp (paper)

NBSK- Paper napkin 42 lb. Linerboard-corrugated box
Plastic Resins (plastic, foam)

Market Trend Increasing Decreasing Steady Steady

Supplies Good Good Good Good Good

Price vs. Last Year Lower Higher Higher Same 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-11 Increasing Increasing Decreasing Increasing Increasing Decreasing Mar-11 Increasing Increasing Increasing Decreasing Increasing Increasing Feb-11 Increasing Increasing Increasing Increasing Increasing Increasing

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

Processed Fruits and Vegetables Report
Processed Fruits and Vegetables- Raw product costs for vegetable processors are expected to remain high
next year. 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 Higher Higher Higher Higher Higher Higher Higher

Produce Report
Produce- Iceberg lettuce prices have fallen sharply recently due to strong Southwest
lettuce production. Yuma and Imperial Valley lettuce shipments last week were 22% above a year ago. The downside risk for the iceberg lettuce markets from here may now only be modest. Tomato shipments from FL last week were 37% below '11. Cool overnight temperatures in FL have slowed tomato growth. Still, mature green tomato supplies are expected to pick up from FL and Mexico during this month which could place downward pressure on the various tomato markets.

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

Limes (150 count) 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.

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

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

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

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.) Decreasing Decreasing Increasing Decreasing Increasing Increasing Decreasing Decreasing Decreasing Increasing Decreasing Increasing Steady Good Good Good Good Good Good Good Good Good Good Good Good Good Lower Lower Lower Lower Higher Lower Lower Lower Same Higher Lower Lower Lower

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

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