Beef output last week declined 1.3% and was 5.1% less than a year ago. Cattle futures have fallen sharply during the last week which should enhance beef producer margins and bring a modest boost to beef production. Consequently, it is anticipated that many beef markets are at or at least near a top. Lower beef prices could be forthcoming over the next few weeks. Due to the recent appreciation of the US dollar more imported beef is becoming available which should be bearish for the beef trimming markets. Prices per pound FOB from USDA.

October US milk output was 1.2% more than last year due to a 1% larger milk cow herd and a .3% gain in milk per cow yields. The milk cow herd size during October did not change from September however milk cow herd reductions may be pending. The CME cheese markets continue to move higher but the trade is expecting cheese prices to turn downward shortly. Lower butter prices may be coming next month as well. September butter exports were 11.3% less than the previous year. Prices per pound, except Class I Cream (hundred weight), from USDA.

September US chicken exports were 25% larger than last year despite a 21% decline in trade with Russia and China/Hong Kong. Chicken exports as of late have been struggling causing the chicken leg quarter market to fall drastically. If chicken exports are poor in the coming months it will force the need for US producers to get more value from the breast and wing. Thus it could be very bullish for chicken breast and wing prices. The 6 week moving average for broiler egg sets is 8% less than last year. Significant chicken output cutbacks are expected this winter. Prices USDA, FOB per pound except eggs (dozen).

September US shrimp imports were 6% larger than last year with 6 of the top 7 shrimp exporters to the US all increasing trade during the month. Fairly strong US shrimp imports could persevere due to the appreciation of the US dollar. This factor and a struggling US economy may be especially bearish for the shrimp markets in the coming months. Prices for fresh product, unless noted per pound from Fisheries Market News.

September US pork exports were 42% larger than the same month a year ago but were 11% less than August and the smallest for any month since December 2007. Pork exports are anticipated to trend below year ago levels next year. Russia recently announced that they are cutting their pork import threshold from the US by 40%. This could be bearish for pork trimming prices. The belly market is trading near key support levels. History suggests that the belly market could trade near $.70 through the end of January. Prices per pound FOB from USDA.

The lettuce markets are firming. High winds and warm temperatures are reported to be impeding growth for the lettuce heads. Lettuce prices could be somewhat volatile over the next week or so as the chief harvest area shifts to the Yuma/Imperial Valley region. The tomato markets remain inflated. Heavy rains from Tropical Storm Faye wiped out early tomato plantings in the Immokalee Florida area this summer. The Immokalee area is typically the chief domestic source for tomatoes during the winter. Florida tomato shipments could be short over the next 6 weeks. Prices shipping point unless noted (terminal) FOB from USDA.

The grain corn market has been in a sideways trading range recently. Challenged ethanol producer margins could be bearish for corn down the road. Prices per pound (oils) or bushel (grains) FOB from USDA.

Tomato Products, Canned - The canned tomato markets are firm. Whole peeled and diced tomato stocks are reported to be historically restricted due to strong demand. Elevated canned tomato prices will likely persist. Price per case (6/10) FOB from Supply and Market Report.

Processed Fruits and Vegetables - Most canned vegetable product supplies are relatively limited and could remain so throughout most of 2009. Steady to modestly higher canned vegetable prices are expected in the coming months. Prices FOB per case from Supply and Market Report.