WEEKLY MARKET TRENDS REPORT

September 27, 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 rose 3.8% and was 1.3% larger than the same week a year ago. Tighter cattle supplies are coming, however, as the USDA reminded the trade last Friday in their monthly cattle on feed report. The September 1 cattle on feed inventory was 7.2% less than 2012 and the smallest for the date in ten years. Cattle placements into feedlots during August were down 10.9% versus last year and the smallest for the month on record. The October 1 near slaughter ready cattle inventory is estimated to be 5% less than the three year average for the date. Beef prices will be supported this fall.

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 Increasing Increasing Increasing Steady Increasing Decreasing Increasing Decreasing Increasing Increasing Increasing Decreasing Decreasing Decreasing Decreasing Increasing Increasing Increasing Increasing Decreasing Increasing Decreasing Decreasing Decreasing 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 Good

Price vs. Last Year Lower Lower Lower Higher Higher Lower Higher Lower Lower Lower Lower Lower Higher Lower Lower Higher Lower Higher Higher Higher Higher Lower Higher Lower Lower Higher Higher Lower Lower 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- 2014-15 winter wheat crop planting is progressing on schedule under much better conditions than a year ago. Wheat prices may remain below 2012 this fall.

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 Durum Wheat

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

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

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

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Dairy Report
Dairy- The USDA estimates that U.S. milk production during August was 2.6% larger than the previous year and slightly better than July. This marks the first time that August U.S. milk output was bigger than July since the records began in 1930. Models suggest that milk farmers have modestly expanded the milk cow herd in recent months which bodes well for milk production this fall. The CME cheese markets have remained relatively range bound during the last week. Butter prices are moving higher but ample stocks could limit the upside price risk from here.

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 Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Increasing Increasing Decreasing Increasing Increasing Decreasing Increasing

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

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

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Pork Report
Pork- Pork output last week rose .5% but was 8.7% less than the same week a year ago. Better hog supplies are anticipated in the coming weeks which should be accompanied with much stronger pork production. Thus, lower pork prices are anticipated in the coming months. Typically the pork belly market declines 16% during October. August 31 cold storage pork stocks were 8% smaller than last year with loin (23%), rib (17%), butt (35%) and trim (30%) holdings all smaller than 2012. The pork belly inventory was up 35% versus the prior year.

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 Increasing Increasing Increasing Increasing Increasing Increasing Increasing Increasing Increasing Increasing

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

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

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Canned Tomato Report

Tomato Products, Canned- The USDA is projecting the 2013 U.S. tomato for canning harvest at 12.5 million tons, down 5.3% from 2012. The markets are firm.
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

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Poultry Report
Poultry- Chicken production for the week ending September 14th was 1.9% larger than the same week a year ago. Solid chicken production gains are anticipated in the coming months. The broiler chick hatch during August was 2% larger than the prior year. Further, pullet placements into the broiler hatchery flock were up by the same amount during the month. The broiler hatchery flock is projected to climb above year ago levels by the winter for the first time since early 2012. This should enable strong chicken output gains. The chicken breast markets are in decline and additional price decreases are likely next month. Last year the boneless skinless chicken breast market depreciated 9% during the month of October.

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 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

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

Supplies 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 Higher Higher Higher Higher Higher Higher Higher Higher Lower Lower Lower Higher Lower Lower Lower

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

Seafood Report
Seafood- U.S. Gulf of Mexico shrimp landings during August were 10.7% less than last
year. 2013 to date shrimp landings are down 1.1% from 2012. The shrimp markets are expected to continue to track above year ago levels due in a large part to smaller imports from Thailand. Still, the upside price risk in shrimp prices from here may only be modest. The International Trade Commission recently disallowed U.S. shrimp tariffs.

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 Decreasing Increasing Steady Steady Steady Steady Steady Increasing

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 Decreasing Decreasing Decreasing Increasing Decreasing Steady Supplies Good Good Good Good Good Good Price vs. Last Year Higher Higher 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 Aug-13 Decreasing Increasing Increasing Increasing Increasing Increasing Jul-13 Increasing Decreasing Increasing Decreasing Increasing Increasing Jun-13 Increasing Decreasing Increasing Increasing Increasing Decreasing

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

Processed Fruits and Vegetables Report

Processed Fruits and Vegetables- August 31st frozen green bean (7%), cob corn (8%), and green pea (4%)
holdings were all less than the previous year. The markets are steady to 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 Same Same Same Same Same Same Same Same

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

Produce Report
Produce- The lettuce harvest this week has been short of demand influencing lettuce
prices upward. Farmers are picking lettuce prematurely to take advantage of the rising markets. This could cause lettuce supplies to remain somewhat short for the next few weeks. The Idaho potato harvest is 20% complete which is modestly better than the average pace for late September. The Idaho potato markets are trending downward and history suggests that further declines may be forthcoming. Lower avocado prices are anticipated next month with better imports.

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.

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

Supplies 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 Higher Higher Lower Higher Higher Higher Higher Higher Higher Lower Lower Higher Lower Higher

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

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.

Decreasing Decreasing Decreasing Increasing Increasing Decreasing Decreasing Increasing Increasing

Good Good Good Good Good Good Good Good Good

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 24s Mushrooms (large), Term. Cucumbers, Bushel Pickles (200-300 ct.)-Term. Asparagus (small) Freight (CA to City Avg.) Decreasing Increasing Decreasing Increasing Decreasing Decreasing Steady Increasing Increasing Increasing Increasing Decreasing Decreasing Good Good Good Good Good Good Good Good Good Good Good Good Good Higher Higher Lower Higher Lower Lower Higher Higher Higher Higher Higher Lower Higher

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