WEEKLY MARKET TRENDS REPORT

July 26, 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 output
last week rose 1.9% and was .5% bigger than the same week a year ago. Beef production is expected to trend below 2012 levels during the next month due to historically tight cattle supplies. The July 1 cattle on feed inventory was 3.2% smaller than the previous year while June cattle placements into feedlots were 4.6% less than 2012. The August 1 near slaughter ready cattle inventory is estimated to be 3.7% smaller than the five year average for the date. Many of the beef steak cut markets continue to decline but are anticipated to find some modest support soon. 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 Increasing Decreasing Increasing Decreasing Increasing Decreasing Increasing Decreasing Decreasing Decreasing Steady Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Increasing Decreasing Decreasing 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 Good

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

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

Decreasing Steady Steady

Good Good Good

Lower Higher Higher

Oil and Grains Report

Oil & Grains- Weather conditions have improved for the corn and soybean crops. Still, inflated corn and soybean prices could persist throughout August.

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 Increasing Increasing Decreasing Decreasing Decreasing Decreasing

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- The CME cheese markets have been erratic during the past week. Ample U.S. supplies are keeping domestic cheese prices at bay. June 30th cheese stocks were 5% bigger than last year and the largest for the month since 1984. Still, the upside price risk for cheese during the next few months is greater than the downside. The butter markets remain deflated due to burdensome supplies. June butter stocks were 33% more than 2012. June U.S. milk output was 1.5% larger than last year. Decent milk output gains versus 2012 may temper seasonal dairy price gains this summer.

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

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

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

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Pork Report
Pork- Pork output last week declined 1.8% but was 3.7% bigger than the same week a year ago. Year to date pork production is just .3% smaller than 2012 and production gains are anticipated in the coming months. Sow prices are trading near record highs which is a signal that hog producers are expanding the herd. The pork markets have mostly weakened as of late. However, history suggests that the belly market could remain well supported next month. June 30th pork belly stocks were 13% less than last 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 Increasing Decreasing Decreasing Decreasing Increasing Decreasing Decreasing Decreasing Increasing Decreasing Increasing Increasing

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

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

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

Canned Tomato Report

Tomato Products, Canned- The canned tomato markets are relatively steady. The Midwestern tomato for canning harvest is late this year due to the cool, wet spring.
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 13th was 6.7% larger than the prior
year. 2013 chicken production to date is trending 3.2% above last year. Broiler chick placements during June were 1% more than 2012 which suggests modest chicken production gains will persevere next month. Further, June pullet placements into the broiler hatchery flock were 3% larger than the previous year which is bullish for chicken output longer term. The chicken wing markets are firming as lower prices in recent months have encouraged feature activity. June 30th chicken wing stocks were 84% more than 2012 but declined from the previous month by the biggest amount in the last 7 years. Modestly higher wing prices are likely next month.

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

Good Good Good Good Good Good Good Good

Higher Lower Lower Higher Higher Higher Lower Lower

Seafood Report
Seafood- U.S. Gulf of Mexico shrimp landings during June were 20% more than the same
month a year ago and 5% bigger than the five year average for the month. Year to date shrimp landings, however, are the smallest since 2010. A higher valued U.S. dollar and better production out of Thailand are expected to lead to better U.S. shrimp imports later this year. Shrimp prices could remain elevated during the meantime.

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 Increasing Increasing Steady Decreasing 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 Steady Decreasing Increasing Increasing 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 Decreasing 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 Increasing Increasing Decreasing Increasing Increasing Decreasing Mar-13 Increasing Increasing Increasing Decreasing Increasing Increasing Feb-13 Increasing Increasing Increasing Increasing Increasing Increasing

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Processed Fruits and Vegetables Report

Processed Fruits and Vegetables- The green pea for processing harvest is progressing. June 30th frozen
green pea stocks were 16% less than last year. The 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- The potato markets continue to trade at inflated levels due to seasonally
tight supplies. Currently, the Idaho potato markets are trading at their highest levels since September 2011. The upside price risk in the potato markets from here may be limited. The Idaho potato harvest is expected to get underway during the first week of August which should lead to better supplies. However, significant price relief for potato prices may not occur until September. The lettuce markets remain elevated due in part to poor crop yields. Expensive lettuce prices could persist into next week.

Limes (150 count)

Market Trend Decreasing

Supplies Good

Price vs. Last Year Higher

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

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 Steady Increasing Steady Decreasing Steady Decreasing Decreasing Decreasing Increasing Increasing Increasing Increasing Increasing Steady Increasing Increasing Increasing Increasing Increasing Increasing Decreasing Decreasing Decreasing Decreasing Increasing 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 Same Higher Lower Lower 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 Decreasing Increasing Steady Increasing Decreasing Increasing Increasing Decreasing Decreasing Decreasing Decreasing Good Good Good Good Good Good Good Good Good Good Good Good Good Higher Higher Lower Higher Higher Higher Lower Higher Higher Higher Higher Higher Higher

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