WEEKLY MARKET TRENDS REPORT

December 21, 2012

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 production last week declined .8% but was 2.3% larger than last
year. Slowed holiday beef output and poor packer margins could support beef prices in the coming weeks. The USDA is projecting beef production to be down 2.8% in Q1 of '13 versus the prior year. Estimated dressed cattle weights last week were 3.1% above '11. If this trend persists, it could temper this winter's expected beef output shortfall. Buyers are beginning to focus on end cut beef products which is bringing support to those markets. Retail beef prices in Nov were up 5.1% versus last year and were a new record high.

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

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

Increasing Steady Steady

Good Good Good

Higher Higher Higher

Oil and Grains Report

Oil & Grains- U.S. corn exports have been lackluster and the corn market has been under pressure. Still, corn
supplies remain historically tight which could support corn prices this winter.

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 Decreasing Decreasing Decreasing Increasing Increasing Decreasing Decreasing Decreasing Decreasing

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

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

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Dairy Report
Dairy- The CME cheese markets continue to trend seasonally lower. Cheese supplies are adequate which could
pressure CME cheese prices lower in the near term. Typically cheese blocks depreciate $.12 during the last two weeks of Dec. But, this year's depreciation for blocks may be less intense due partly to firming global cheese prices and curbed milk output. The CME butter market recently closed at its lowest level since July. Usually the CME butter market trends $.05 lower during this week and next. The downside price risk for CME butter is likely nominal.

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

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

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

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Pork Report
Pork- Pork production last week declined 2.3% and was 2.5% smaller than the same week last year. Pork output will
be slowed over the next two weeks due to the holidays. This could provide support to many of the pork markets. The USDA pork cutout usually bottoms during the first week of Jan and then appreciates 4.9% during the next four weeks. Retail beef prices in Nov were 2.9% less than last year and the lowest since Apr '11. Look for retail feature activity for pork to pick up this winter adding support to the domestic pork markets.

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 Steady Increasing Decreasing Increasing Increasing Decreasing Increasing Decreasing Decreasing Decreasing Steady

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

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

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Canned Tomato Report

Tomato Products, Canned- This fall's tomato for canning harvest produced the second largest output on record.
The canned tomato markets are balanced.

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 production will be curbed over the next ten days due to the holidays.
This could bring support to the chicken markets. Broiler egg set data (a gauge on pending production plans by producers) has been erratic in recent weeks. Still, feed costs remain historically expensive which may keep chicken output expansion plans at bay. The boneless skinless chicken breast market normally rises 7.8% during Jan but prices could be tempered next month due to heavier bird weights. The chicken wing markets look poised to test their record highs in the coming weeks. The ARA weekly chicken wing index last week was the second highest on record. U.S. retail chicken prices during Nov were 5.8% higher than last year and a record high.

Whole Chicken (2.5-3 lb-GA) Whole Chicken (LA) 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

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

Supplies Good Good Good Good Good Good Good Good Good Good

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

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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

Decreasing Increasing Steady Increasing Decreasing Decreasing Decreasing Decreasing Increasing

Good Good Good Good Good Good Good Good Good

Higher Higher Higher Higher Higher Lower Higher Lower Lower

Seafood Report
Seafood- The salmon markets have remained mostly deflated.
During Oct, U.S. salmon fillet steak imports were up 20% versus last year. Year-to-date U.S. salmon fillet steak imports through Oct were 10% more than '11. Ample global salmon supplies have driven international salmon prices lower. This is challenging salmon producer margins and could lead to lower salmon production and higher salmon prices next year.

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 Steady Steady Steady Increasing Increasing Increasing Steady Steady Steady Steady Decreasing

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

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

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 Steady Supplies Good Good Good Good Good Good Price vs. Last Year Lower Lower Lower Lower Lower Higher

Paper Product Report

Wood Pulp (paper)

NBSK- Paper napkin 42 lb. Linerboard-corrugated box

Plastic Resins (plastic, foam)

Market Trend Steady Increasing Steady Steady

Supplies Good Good Good Good Good

Price vs. Last Year Lower Higher Higher Same Same

PS-CHH-utensils, cups, to-go cont. PP-HIGP-heavy grade utensils PE-LLD-can liners, film, bags

Decreasing

Retail Price Change from Prior Month

Beef and Veal Dairy Pork Chicken Fresh Fish and Seafood Fresh Fruits and Vegetables Apr-11 Increasing Increasing Decreasing Increasing Increasing Decreasing Mar-11 Increasing Increasing Increasing Decreasing Increasing Increasing Feb-11 Increasing Increasing Increasing Increasing Increasing Increasing

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

Processed Fruits and Vegetables Report

Processed Fruits and Vegetables- Inflated grain prices are expected to keep raw product vegetable costs
expensive in '13. The processed vegetable markets remain 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 Higher Higher Higher Higher Higher Higher Higher

Produce Report
Produce- Dec 1st U.S. potato holdings were 11% more than a year ago and the most for
the date in the last ten years. This was due mostly to the fall potato harvest being 8.7% larger than last year. The downside risk for the ID potato markets from current levels is likely limited. Mexican tomato supplies are expected to increase next month which should translate to solid U.S. tomato imports. Last year, the mature green tomato markets declined 35% during Jan. Hass avocado supplies are coming mostly from Mexico and remain adequate. Hass avocado prices normally rise 19% in Jan.

Limes (150 count)

Market Trend Increasing

Supplies Good

Price vs. Last Year Higher

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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.

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

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

Lower Lower Lower Lower Higher Higher Lower Higher Higher Lower Lower Lower Lower Lower Lower Higher Higher Higher Higher Higher Higher Higher Higher Higher Higher Lower Lower Lower

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.) Increasing Increasing Decreasing Increasing Decreasing Increasing Increasing Increasing Decreasing Decreasing Increasing Decreasing Decreasing Good Good Good Good Good Good Good Good Good Good Good Good Good Lower Lower Lower Lower Higher Higher Higher Lower Lower Lower Higher Lower Lower

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