July US beef imports were 10.8% less than last year and the lowest for the month since 2003. The decline in beef imports has helped push the beef grind and trimming markets above year ago levels. However, if the dollar continues to appreciate it will encourage beef imports in the coming months which could be modestly bearish for the beef grind and trimming markets. Grinds and trimmings are anticipated to remain well above 2007 levels. August US retail beef prices were a record high. Prices per pound FOB from USDA.

July US butter exports were 173% or 9.9 million pounds larger than the previous year. The current US butter price at $1.70 is roughly $.09 above the international butter market which suggests that butter exports could slow appreciably soon. July US cheese exports were 214% bigger than last year and the existing US cheese markets are about $.09 under the international market. The cheese markets continue to move upward but history suggests that modestly lower prices may be pending in October. Prices per pound, except Class I Cream (hundred weight), from USDA.

July US chicken exports were 34% or 160.6 million pounds more than the previous year. Chicken export growth during the month to China, Mexico and Ukraine accounted for 58% of the total trade gain. US chicken export expansion could be tempered some in the fourth quarter due in part to trade challenges with Mexico and Russia. The chicken breast and wing markets appear to be beginning to modestly strengthen. If planned chicken production cutbacks come to fruition in the coming weeks it should be considerably bullish for the breast and wing markets this fall. Prices USDA, FOB per pound except eggs (dozen).

July US pork exports were 89.4% or 134.6 million pounds larger than last year. 33% of the increase in pork trade was attributed to trade gains with China/Hong Kong and Mexico. Exports to China/Hong Kong are reported to have slowed considerably since mid August. The US is also having trade challenges with Russia and Mexico. These factors could temper pork export growth this fall which would be bearish for the pork markets. Prices per pound FOB from USDA.

The Idaho potato harvest is progressing but as of September 14th the harvest was only 7% complete compared to the 5 year average of 12%. Idaho potato prices are moving modestly lower and additional market declines are anticipated. Idaho potato prices are not expected to fall below $12 this fall, though, due to the decline in acreage this year. A typical fall market average for Idaho potatoes is $9 a case. Avocado imports should improve soon which may influence the avocado market downward. Last year the avocado market declined 18.7% during the next 3 weeks. Prices shipping point unless noted (terminal) FOB from USDA.

The soybean oil market is trending lower due in a large part to declining international palm oil prices. Palm oil futures recently hit 17 month lows. Prices per pound (oils) or bushel (grains) FOB from USDA.

Tomato Products, Canned - The total contracted 2008 US tomato for canning harvest is projected by the USDA at 12.1 million tons, 4.7% less than the prior year. Steady to higher canned tomato prices are likely in the forthcoming months. Price per case (6/10) FOB from Supply and Market Report.

Processed Fruits and Vegetables - The 2008 corn for processing harvest is estimated by the USDA at 2.988 million tons which would be 3.1% more than last year. The processed vegetable markets remain firm due to higher raw product costs. Prices FOB per case from Supply and Market Report.