WEEKLY MARKET TRENDS REPORT

August 9, 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 declined 1.7% and was 2% less than the same week a year ago. Cattle slaughter last week was the smallest for any non-holiday week since early May as lower beef prices have caused beef packers to curb output. Slowed beef production is persisting this week. Beef demand is relatively quiet with choice loin prices falling 25% since their peak this spring to their lowest level in five months. Labor Day holiday demand is expected to bring some support to the beef markets shortly. Last year the choice 0x1 beef strip market increased 7% during the next two weeks.

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

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 Higher Lower Lower Higher Lower Lower Lower Lower Lower Lower Lower Lower Lower Lower Higher Lower Lower Lower 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)

Increasing Steady Decreasing

Good Good Good

Lower Higher Higher

Oil and Grains Report

Oil & Grains- Soybean oil prices are trading near three year lows due in part to ample world food oil stocks. The downside price risk in soybean oil from here may be nominal.

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 Increasing Decreasing Increasing Increasing Increasing Decreasing Decreasing

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 CME butter market continues to trend well below year ago levels due to ample U.S. supplies. Typically the butter market moves modestly upward during August. The CME cheese markets are edging higher. The international dairy markets have been historically elevated as of late however they have been impacted by a Chinese ban on various New Zealand whey products. As New Zealand is the largest dairy exporting country there is concern that China and other countries could look to the U.S. for more dairy products influencing prices higher 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 Increasing Increasing Increasing Increasing Increasing Increasing Increasing Decreasing Increasing Decreasing Steady Decreasing Decreasing Decreasing

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

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

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Pork Report
Pork- Pork production last week rose 1.5% and was .6% above a year ago. Pork output should begin to seasonally build later this month and is expected to continue to trend above 2012 levels. The pork markets are generally moving upward due in part to better retail feature activity this month. History suggests that the USDA pork cutout index should peak during the next few weeks. Pork belly prices could top relatively soon as well. Last year belly prices depreciated 8% during the last two weeks of August.

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 Increasing Increasing Increasing Increasing Decreasing Decreasing Increasing 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 Higher Higher Lower Higher Higher Higher Higher Higher

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Canned Tomato Report

Tomato Products, Canned- Midwestern tomato for canning supplies will become more available in the coming weeks. The canned tomato markets are steady.
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 output for the week ending July 27th was 3.9% larger than the same week
a year ago. 2013 chicken production is now trending 3.2% above the prior year. Lower feed costs for chicken producers should encourage strong chicken output expansion in the coming months. Spot feed costs for chicken producers last week fell to their lowest level in thirteen months. The weekly ARA chicken cutout index has fallen to four week lows. Usually the ARA chicken cutout index appreciates 8% during the next four weeks due in part to Labor Day holiday feature activity and better wing demand for the beginning of the football season. The five year average more for the jumbo cut chicken wing market during the next ten weeks is up 8%.

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 Steady Decreasing Decreasing Decreasing Decreasing Steady Steady Decreasing Decreasing Decreasing Increasing Decreasing Increasing Increasing Increasing Increasing 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 Higher Higher Lower Lower Higher

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

Seafood Report
Seafood- The shrimp markets continue to trend well above year ago levels due in part
to disease challenges were down 19% from the accounting for 25% of anticipated later this with Thailand shrimp production. U.S. shrimp imports in June previous year. Thailand is the largest shrimp exporting country U.S. shrimp imports in 2012. Better Thailand shrimp output is year. The upside price risk in shrimp from here may be limited.

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 Increasing Steady 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 Steady Steady Increasing Decreasing Steady 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 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 Jun-13 Increasing Decreasing Increasing Increasing Increasing Decreasing May-13 Increasing Decreasing Increasing Decreasing Decreasing Increasing Apr-13 Decreasing Increasing Decreasing Increasing Increasing Decreasing

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Processed Fruits and Vegetables Report

Processed Fruits and Vegetables- The green bean and corn for processing harvests will advance in the
coming weeks. 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 Lower Higher Lower Higher Higher Higher Lower

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

Produce Report
Produce- The Idaho potato markets continue to trade at some of their highest levels since the summer of 2011. Existing Idaho potato storage supplies are seasonally tight. The chief Idaho potato harvest has gotten underway and potato supplies should begin to improve shortly. Still, relatively elevated Idaho potato markets could persist through the end of the month. Iceberg lettuce supplies remain limited due in part to recent adverse weather. Romaine and leaf lettuce prices are tracking below iceberg which signals that some iceberg lettuce market relief may be pending soon.

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.

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

Supplies 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 Higher Lower Lower Higher Lower Same Higher Higher Lower Higher Higher Higher Higher Lower Lower Lower Lower Lower Lower Higher Higher

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

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.

Steady Increasing Increasing Increasing Increasing Increasing Decreasing

Good Good Good Good Good Good Good

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

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