Jun 11 2020

Dave’s Weekly Market Update

Good afternoon to all of you.

As states begin reopening, the foodservice business is adjusting. A few manufacturers are still having a hard time keeping up with demand.
Last week I mentioned that Land O Lakes is way behind on a few Hilldale items. We are still waiting on getting that 120ct white (hopefully due in the middle of next week).

Saputo is having issues with some of their cheeses. Most product lines are back in stock, and, service levels have improved drastically. But my orders still keep getting cut on the hard cheeses; Parmesan, Italian Sharp, Asiago and Fontinella.

Here in the East many places are opening with outdoor seating only. A big challenge for places that didn’t have outdoor seating before COVID 19. I feel it will be a slow process for them, as many people still will not be comfortable going out. Other areas are opening with limited capacity for indoor seating. I recently read a report that said as many as 20% to 30% of restaurants may not make it and will cease operations. That will have a huge effect on our industry.

Eggs:

The glut of eggs is driving the egg market lower this week. The drops have been gradual. Breakfast is the segment in restaurants that seems to be hurting the most at this point.

Butter:

After the butter jumped .29 last Thursday, it dropped .09 on Friday. It rebounded some yesterday but gave it up today and we will drop for next week. 21 loads were traded at the CME this week so there seems to be support around this level.

Cheese:

The Block market broke an all-time high record by rising to $2.585 on Monday. It has backed off some and closed today at $2.54. The market is higher than it was last week but we are not passing the increase on to you. The Barrel market is up around .09 but again we are holding back on going higher. I’m not sure how long the markets can stay at these levels especially with business not being all that strong.

As always, we at Honor Foods thank you for your continued business and hope you have a safe and relaxing weekend.