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Highlights

Market updates

from The Plastics

Exchange Market Summary

Egg Market Week of January 9, 2017

TONE: Retail demand ranges poor to fair. Supplies long. Market weak.

The regional egg markets are as follows:

Northeast Midwest Southeast South Central

Lg .83 .81 .87 .87

Md .64 .64 .64 .64

Source: Esbenshade, Inc.

Weekly Market Highlights

Wheat futures prices have moved higher since our last communication two weeks ago. Hard red winter wheat futures are showing strength on a reported drop in condition ratings due to cold and drought.

Basis premium prices are firm to higher. We could expect to see spring wheat basis strength if weather conditions don’t improve primarily in the

Dakotas. Some parts of North Dakota have received more than four and a half feet of snow, and bitter cold conditions make loading wheat and moving it by rail very difficult.

Snow cover is forecast for parts of the winter wheat growing area that could benefit from cover for wheat crops and moisture as well.

Futures are likely to remain in a fairly narrow trading range, but basis volatility will likely remain.

Facts on Flour Gold Medal Remarkable

A high gluten spring wheat flour is ideal for breads of large volume, good grain and texture. It’s excellent for all

types of hearth breads as well as rye and wheat breads and rolls. Description: A high quality enriched, malted bread flour milled from a selected blend of Hard Red Spring Wheat. Available bleached or unbleached, bromated* or unbromated. Uses: Hearth breads, Kaiser rolls, specialty breads, hard rolls. *Bromated flour available east of the Rockies only.

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

Bu

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Futures & Basis Markets

KC Future

Spring 15% Basis (No.1 Northern Spring)

Mpls Future

Winter 13% Basis (No.1 hard winter)

Flour pricing consists of a combination of Wheat futures prices and Basis Premium prices per bushel. Information contained on this chart closely resembles Gold Medal All Trumps, Mpls. Future + 15% Basis, and Harvest King, KC Future + 13% Basis. This chart does not reflect changes in millfeed values.

This Chart is meant to indicate Market Direction Only.

JANUARY 5, 2017

Produce Market Update For the week of: January 8th 2017

“Produce from the Ground Up”

Barbecued Chicken with Berry Mojito Sauce

The mojito, a cocktail of rum, lime and mint lends its flavor to this fruity and tangy barbecue sauce. Boneless and skinless chicken thighs are terrific grilled, as they are less likely to dry out than chicken breasts. INGREDIENTS Berry Mojito Sauce

2 Teaspoons vegetable oil 1 Tbsp. light brown sugar

2 Tablespoons finely chopped shallots 1/4 Tsp. Kosher salt

1 PT package (6 ounces or 1 1/3 cup) Driscoll's Blackberries 1/4 Tsp. crushed red pepper

1/2 Package (3 ounces or 3/4 cup) Driscoll's Blueberries 2 Tablespoons gold or amber rum

3 Tablespoons fresh lime juice 2 Tablespoons chopped fresh mint

2 Tablespoons molasses (not blackstrap) Grated zest of 1 lime Chicken 1 Tsp. Kosher salt 1/2 Tsp. freshly ground black pepper 12 boneless and skinless chicken thighs

DIRECTIONS Berry Mojito Sauce Heat oil in small saucepan over medium-low heat. Add shallots, cover and cook, stirring occasionally until softened, about 2 minutes. Add blackberries, blueberries, lime juice, molasses, brown sugar, teaspoon salt and red pepper. Bring to a simmer over medium heat. Cook, stirring often, until reduced to about 1½ cups, about 6 minutes. Remove from heat. Stir in rum, mint, and lime zest. Cool. Set aside 1/4 cup sauce for brushing over chicken. Chicken Prepare a medium-hot fire in an outdoor grill. For a gas grill, preheat on high, then adjust to medium-high (about 450°F). For a charcoal grill, let coals burn for about 15 minutes after white ashes form on surface, and you can hold your hand just above cooking grate for about 3 seconds. Season chicken with salt and pepper. Lightly oil grill grate. Place chicken on grill and close cover. Grill, turning occasionally, until golden brown and cooked through, 12 to 14 minutes. During the last 3 minutes, brush both sides with reserved sauce. Serve hot with remaining sauce. Created by: Rick Rodgers and came from the Driscoll Web sight

AVOCADO -- We continue to see the market get more and more active, particularly on large fruit as the size mix shifts to heavier fruit from the smaller sizes. Production on # 2 volumes will also be increasing throughout the remainder of January. With the shift in small fruit, 60's and larger are expected to call for a higher prices through the Super Bowl Weekend. Quality remains good with good oil content. Speaking of which, let us not forget the KC Chiefs are 1st in AFC West! Let’s go chiefs!! ASPARAGUS -- EXTREME MARKET!! Prices are up due to the end of the season. This transition phase will last until about Jan. 15th, when Mexico starts. After that, we should see more asparagus availability. Mexico is on schedule to start by mid-January, and the real volume will hit us by early/mid-February, helping this market out. BROCOLLI -- Supplies are good this week and we are seeing a range of prices. Quality is good. CARROTS -- Carrots are in great quality and good supply. Jumbo Carrot market is steady to slightly lower. CAULIFLOWER -- EXTREME MARKET. Due to the weather at the beginning of the Yuma season, we are seeing a very short supply in the cauliflower industry wide. Prices are escalated. CELERY -- Supplies are better and overall, quality is good. Santa Maria and Oxnard are the main growing areas with the desert regions not starting production till late this month. As far as quality is concerned, some light pith, flagging, insect damage and crack at node have been issues here and there. GREEN ONIONS -- EXTREME MARKET The green onion USDA mostly market call has sustained above MARKET CONTRACT pricing for the past 4 days due to short supplies out of Mexico caused by weather, border crossing delays, and labor shortages. Due to this supply shortage and the market conditions associated with this item, Pro Mark suppliers will implement the following temporary price increase with orders placed to load beginning Tuesday 1/3/2017: Pro Mark takes great pride in supplying high quality value added produce while providing exceptional service. We are monitoring the situation as close as possible and will return to normal pricing as soon as the situation allows. We apologize for any inconvenience this causes you and your customers. LETTUCE -- The iceberg lettuce market in Yuma is steady and this looks to continue for the entire week. Demand is off. The weather will not hit some freezing temperatures in the desert for the entire week. High 60’s to mid-40’s on the lows are predicted temps for the rest of the week. Aside from some slight discoloration and misshapen heads, the quality has been reported to be good. There are no gaps in the forecast for the rest of this year. LEAF & ROMAINE -- Green and Red Leaf: Supplies are heavy, quality is average. We are seeing a lot of dirt due to the heavy winds, seeders, and tip burn. Weather conditions have been much better compared to past weeks in the desert.

PEPPERS/CUCUMBERS/RADISH/SQUASH -- Peppers -- Good Supply of Green Bells in Nogales. Quality is Fair to good depending on Shipper. Supply exceeds demand keeping market on Green Bells Low. Colored bells have started strong with good quality and condition. Supply exceeds demand keeping Market on Colored bells steady. Cucumbers -- Availability is plentiful in the east, with imports from Central America increasing. Northern Mainland Mexico is now the primary district in the west; supplies are plentiful. Radish -- Quality is good and supply is plentiful. Squash -- Quality is variable for zucchini and yellow straight neck in Florida, with better quality commanding higher prices. Prices have firmed for both varieties from Mainland Mexico with excellent quality.

POTATOES -- Current demand is good with limited availability on product due to the cold weather that the southeastern part of the country will be experiencing over the next few days. You will probably see the last two days of this week with very limited production due to this cold snap. We do not anticipate a rise in prices at this time, but you will probably not be able to find any bargains. You should see good demand for the first couple of weeks of January if traditional business remains the same. We expect very good demand on cartons, good demand on consumer packs for this time period, and then you should see business become fair for the next eight weeks. The Idaho Potato Commission has a number of promotional ads focusing on keeping demand up as much as possible. These are mainly geared towards the retailers, but this year could affect the carton price as well. The commission is promoting a 10oz and larger potato in a consumer pack. We will monitor this closely. ONIONS -- Onion market is steady on all sizes and packs of Yellow and Red Onions. White Onions supplies are seasonally winding down out of the Northwest which should slowly firm this market up as they get into fewer hands as we get into the New Year. Some light greening is showing up in the white onion packs but the overall quality is good. Mexico white onions should start to cross into the U.S. by the end of January start of February. Demand on Onions is moderate but should pick up as we get into the middle of January. Quality is still being reported as nice. Snowy and icy weather is the biggest factor which slowing down Transportation to and from the onion packing sheds. Very cold temperatures (single digits) are to drop into the Northwest the front part of next week which could limit supplies coming out of the storage to packing houses. TOMATOES -- Rounds: Market is slightly stronger from last week. Florida volume is down just a bit while Mexico production is picking. Tomatoes are still at a very attractive price. Quality remains excellent. Grape: After a couple of weeks of low prices and slow movement, the grape tomato market is turning around. You can still buy lower quality lots very cheap, but the market is higher for higher quality lots, mainly out of Florida.

Cherry: Cherry tomatoes are available from both Mexico and Florida. Market is about the same in each area, but Florida seems to be getting firmer on pricing. The volume is lower and demand is picking up. Florida cherry tomatoes are being reported with very good quality. Roma: New growing areas in Mexico are coming into volume. Crossings are low so far this week, but that is primarily due to the holiday pick schedule. There will be good volume available for the remainder of the week. Demand is very good and the better quality fruit is commanding slightly higher prices. Florida has romas too, but their volume is down and they have raised their market. Most of those romas will stay on the East Coast. APPLES / PEARS – Alert on small gold and granny, supplies are tight. Apples and pears are in season. Quality and availability are good. Apples are running on the small side. Prices are up from last year due to the size of the fruit. Small Golden’s remain very short with very few if any 125s and smaller. The Golden volume in Washington is down from last year. Granny’s are steady to higher with very light availability. There are very few if any Granny-smith 125’s and smaller. The Granny-smith volume is also down from last year. STRAWBERRIES -- We should see steady increases in volume for the next several weeks as we get closer to season high volumes in Central Mexico. Oxnard winter planted acres are forecast to ramp up by late January and are expected to be more resilient to rain damage. Prices are expected to firm up due to weather conditions. Both Oxnard and Florida are forecast to receive rain and could cause reductions in overall volume in the coming week. CITRUS -- Lemons: Over all supplies remain good. The desert crop is 70% harvested and with size growth, larger sizes predominate peaking 115s/95s/140s making 165s and 200s short. The central valley crop is still lightly being harvested and peaking on 140s/115s/165s and short on 200s and smaller. Meyer lemons are in good available in all growing districts. Oranges: California and Texas are packing with good supplies. Sizes are peaking at 88/113/72, with a 70/30 grade ratio. Quality, flavor and internal color are very good. Limes: The lime market is higher on all sizes. The rising market is due to lower volume caused by the new crop harvest being in the larger size profile. The other factors causing our elevated prices are the rains that happened three weekends ago, cool weather, great demand across all channels and retail ads. The quality is good with a few reports of moldy fruit from the rains. No more adverse weather is being reported for the near future so we should experience normal market fluctuations as we come in and out of holiday demand and export shipments to other countries

GRAPES -- If you are looking for a value buy; domestic red grapes will continue to be available to load in California this week. Supplies will be good, but the quality is representative of late season fruit. Although shippers are working product and doing their best to eliminate any problems; the reality is, there is some occasional soft berries and the possibility of light mold present. Market prices have not changed and fruit is available in the low to mid-teens. If you are looking for better quality, we have the option of loading Peruvian or Chilean red grapes on the east and west coasts. Flame and Crimson varieties are available. This fruit is much stronger, but the market prices are much higher (mid to high 20’s). As we move into January and more vessels arrive, expect to see the supplies continue to improve and prices will gradually decrease.

MELONS -- Cantaloupe -- The cantaloupe market has slightly strengthened as overall volume has decreased. Growers have shifted from the Zacapa region of Guatemala to either secondary ranches in Guatemala or Honduras. Strong retail promotions are in play for early to mid-January which should continue to assist in stabilizing the market off of its lows. Expect sizing to be primarily 9/9Js with a respectable number of 12s coming to cover regular contract business. The 15ct will remain in a very short position. Weather conditions have been optimal which translates to very good quality. Brix levels recently have been mostly in the 10-14% range

Honey Dew -- Supplies are trending down. Mexico is exporting very nice looking honeydews up to us and their supplies are lightening up a lot as growers finish up for their season down there. Mexican dews are now the same price and higher than the offshore dews. Offshore dews have excellent quality and are peaking on large sizes such as 5’s and 6’s with 8’s being extremely short supplied for several weeks. Offshore dew volume is temporarily lower which is causing the market to react. The market is currently higher on offshore dews and higher on Mexican dews. WATERMELONS -- Supplies are plentiful, and quality is outstanding. Market is extremely weak. Nogales is being very aggressive with the price in an attempt to keep product moving.

Ron Orr Executive Director Pro Mark [573] 680-1066 ronorr@promarkproduce.com

Market Watch . . . . . . .

Market Watch

January 6, 2017

Market Watch . . . . . . .

• Large spec long is still a factor kicking off 2017.

Soybean Oil

• South American weather remains in the driver’s seat this week, and growing conditions have been mostly favorable.

• The trade is taking a bit of caution from drier conditions in northeastern Brazil, but rains have come up in the forecast. Conditions in the South and Center-West have been near ideal. Jan harvest estimated at 7 MMT vs. 2 MMT last year.

• Argentine forecast looks more ideal with less rain in the next two weeks.

Crop Updates

Expected Value Range $32.50 - $34.50 cash

Soybean Oil Market Pricing Trend

Value Ranges *

The information above reflects the current opinion of Stratas Foods but does not represent a guarantee of future market conditions. All final oil booking decisions should be made by the end customer and not Stratas Foods.

* Value ranges represent good booking levels if the market dips into this range

Favorable SA forecast. Brazilian harvest underway.

Global soybean stocks are expected to remain ample.

The US export program to be eyed.

Misc. Influences Impact

Key FactorsRecent Trend

January 6, 2017

BearishBullish Neutral

• Weekly export data was delayed until this morning due to the holiday observed on Monday. Shipments were off this week, but sales were a bit more inspiring. Many still contend that the US needs to curb export business in order to meet larger biofuel mandates in 2017. This will be watched going forward.

• The Blenders’ Tax Credit expired Saturday. Carry-in RINs are expected to help meet the larger biofuel mandates in 2017. Biodiesel production margins are essentially nonexistent and expected to go idle until more questions are answered from the new administration.

Flash Summary

Market Watch . . . . . . .

• Prices are expected to remain steady as supply/demand are balanced.

Corn Oil

• USDA forecasts that Brazil will produce a record corn crop in 2017 thanks to increases in both area and yields this year. Conditions for the first-crop have been nearly ideal in the Center-West.

• US corn stocks remain ample, but economics suggest that farmers will favor soybean plantings over corn in the spring of 2017.

• Chinese corn production is grabbing some more headlines as official crop estimates have been growing.

Crop Updates

Expected Value Range $44.00 - $46.00 cash

Corn Oil Market Pricing Trend

Value Ranges *

The information above reflects the current opinion of Stratas Foods but does not represent a guarantee of future market conditions. All final oil booking decisions should be made by the end customer and not Stratas Foods.

* Value ranges represent good booking levels if the market dips into this range

Misc. Influences Impact

Key FactorsRecent Trend

• Ample supplies of distillers corn oil should help to meet larger EPA mandates in 2017, but this will likely limit export potential.

• Cheap sunflower seed oil out of Eastern Europe is competing with corn oil into many North African and Middle Eastern countries. This should limit demand for US corn oil supplies early in 2017.

• Corn oil consumption is expected to compete with cottonseed and Hi Oleic oils in the year ahead.

• Strength in the US Dollar should hurt the competitiveness of US corn oil on the world market.

Flash Summary

BearishBullish Neutral

Wet-mills running near capacity.

Better ethanol margins can increase supply of dry-milled corn oil.

Domestic demand could be lost to competing oils.

January 6, 2017

Market Watch . . . . . . .

Solid product demand is still present in canola oil.

Tightening supplies should be watched.

Production estimates remain larger than published figures.

• Large US demand will keep canola imports in high demand.

Canola/Rapeseed Oil

• Private Canadian crop production forecasts remain well above the StatsCan. Most estimates are 19-20MMT. StatsCan published their latest figure at 18.424 MMT. Early estimates for 2017 plantings will be a predominate talking point in the next few weeks, and low wheat prices should once again favor canola plantings in the Canadian Prairie.

• Crush will continue to be a leading factor as US demand is strong for the oil products.

Crop Updates

Expected Value Range $37.50 - $39.50 cash

Canola Oil Market Pricing Trend

Value Ranges *

The information above reflects the current opinion of Stratas Foods but does not represent a guarantee of future market conditions. All final oil booking decisions should be made by the end customer and not Stratas Foods.

* Value ranges represent good booking levels if the market dips into this range

Misc. Influences Impact

Key FactorsRecent Trend

• Like US soyoil, the canola market movement has been based on competing oils, mainly the SA crop.

• China continues to get good sales of state-owned rapeseed oil.

• Processor ownership is high; crop movement in Canada will slow as winter sets in.

• Canola margins have not been great over the last few weeks.

• Crude oil gyrations have been a factor over the last few weeks. OPEC deal compliance issues already surfacing.

Flash Summary

BearishBullish Neutral

January 6, 2017

Market Watch . . . . . . .

• Price dips are expected to uncover further coverage from end-users.

Tropical Oils

• MPOB estimate range from 2-8% lower production. The seasonal decline is expected. Stocks are estimated on both sides of unchanged.

• A typhoon last week hurt some coconut trees, but the effects of the storm are still being evaluated.

• Plentiful rains in the past few months should support production.

Crop UpdatesPalm and Coconut Oil Market Pricing Trends

The information above reflects the current opinion of Stratas Foods but does not represent a guarantee of future market conditions. All final oil booking decisions should be made by the end customer and not Stratas Foods.

Misc. Influences Impact

Key FactorsRecent Trend

BearishBullish Neutral

Forward demand looks light for top buyers -China and India.

Production continues to show seasonal declines.

Fund activity remains a question.

January 6, 2017

• Exports from ITS for Dec show down 5.7% at 1.086 MMT vs. 1.152 in Nov. SGS reported down 1.82% at 1.109 MMT vs. 1.130 in Nov.

• Production remains seasonally depressed, with reminders from Malaysian plantation associations. Early Jan estimates are forecasting double digit production losses. Indonesian output remains a relative bright spot.

• Cash market activity should ramp up ahead of the Chinese New Year celebrations.

• Malaysian Prime Minister Najib Razak has appointed Shahrir Abdul Samad as chairman of the Federal Land Development Authority (Felda), operator of some of the world's biggest palm oil plantations, state news agency Bernama reported on Friday.

Flash Summary

01/06/2017

Dairy Market

BLOCK: Up .0125 @ $ 1.6700 4 SalesBARRELS: Down .0200 @ $ 1.5750 0 SalesBUTTER: Down .0400 @ $ 2.2200 6 SalesNFDM Grade A: Up .0225 @ $ 1.0525 1 Sales

Date Blocks Block Change Block Sales Barrels Barrel Change Barrel Sale Spread01/03/2017 1.6700 Up .0100 1 1.5950 Down .0050 2 0.075001/04/2017 1.6600 Down .0100 0 1.5950 Unchanged 0 0.065001/05/2017 1.6575 Down .0025 1 1.5950 Unchanged 0 0.062501/06/2017 1.6700 Up .0125 4 1.5750 Down .0200 0 0.0950

Average Market: 1.6644 6 1.5900 2

Date Butter Butter Change Butter Sales Grd A Grd A Change Grd A Sales01/03/2017 2.2200 Down .0475 1 1.0200 Unchanged 001/04/2017 2.2600 Up .0400 14 1.0275 Up .0075 201/05/2017 2.2600 Unchanged 0 1.0300 Up .0025 001/06/2017 2.2200 Down .0400 6 1.0525 Up .0225 1

Average Market: 2.2400 21 1.0325 3

--Year Ago--Date Blocks Barrels Butter NFDM Grade A

01/04/2016 1.5125 1.5200 2.0400 0.757501/05/2016 1.4900 1.4800 2.0400 0.745001/06/2016 1.4700 1.4800 2.0375 0.742501/07/2016 1.4600 1.4950 2.0325 0.742501/08/2016 1.4600 1.5400 2.0350 0.7325

Weekly Livestock, Poultry & Grain Market Highlights

Nat'l Purchased Wtd Avg Price - Barrows & Gilts ($/cwt) 51.89 -1.4% 7.5%Pork Carcass Cutout FOB Plant ($/cwt) 81.79 2.4% 17.7%Segregated Early Weaned (SEW) Feeder Pigs ($/head) 52.06 4.3% 3.6%Iowa/So. Minn Avg Weight Barrows & Gilts (lbs) 279.2 -0.2% -1.4%Est. Hog Slaughter 2,081,000 -3.2% 2.1%YTD Est. Hog Slaughter 117,366,000 N/A 5658.9%Est. Pork Production (mil lbs) 440.3 -3.2% 0.9%YTD Est. Pork Production (mil lbs) 24,786.7 N/A 1.8%

Live Wtd Avg Steer Price, 5 Area FOB ($/cwt) 117.44 2.0% -12.3%Dressed Wtd Avg Steer Price, 5 Area Del ($/cwt) 188.86 5.0% -10.7%Boxed Beef Cutout, Choice ($/cwt) 201.80 2.3% -2.6%Boxed Beef Cutout, Select ($/cwt) 192.79 4.1% -3.3%Boxed Beef, Choice/Select Spread ($/cwt) 9.01 -2.97 -150.63By-Product Drop Value, Steer ($/cwt live) 11.81 0.3% 12.0%CME Feeder Cattle Index ($/cwt) 132.43 0.3% -17.0%Texas Avg Live Weight Slaughter Cattle (lbs) 1,341.0 -1.4% 0.4%Texas Percent Slaughter Heifers 31% 3.3% -6.1%Est. Cattle Slaughter 507,000 -11.4% 15.2%YTD Est. Cattle Slaughter 30,104,000 N/A 1377.1%Est. Beef Production (mil lbs) 424.9 -11.6% 15.3%YTD Est. Beef Production (mil lbs) 24,906.1 N/A 6.5%

Slaughter Lamb, Choice & Prime, Wtd Avg Price ($/cwt) 141.36 0.2% -1.6%Lamb Carcass Cutout ($/cwt) 321.16 -0.6% -2.5%Est. Sheep Slaughter 33,000 -13.2% 3.1%YTD Est. Sheep Slaughter 2,001,000 N/A 6153.1%Est. Lamb Production (mil lbs) 2.2 -15.4% 0.0%YTD Est. Lamb Production (mil lbs) 137.5 N/A -0.7%Veal Carcass Wtd Avg Non-Packer Owned ($/cwt) 304.57 -0.5% -30.7%Veal Carcass Wtd Avg Packer Owned ($/cwt) 304.47 -0.4% -30.9%

January 03, 2017

Current WeekChange From

Past WeekChange From

Past Year

Source: USDA AMS Livestock, Poultry & Grain Market News Portal

35.00

45.00

55.00

65.00

75.00

85.00

95.00

105.00

J F M A M J J A S O N D

Weekly Barrow & Gilt Price and Weekly Pork Cutout vs. 5 Year Average ($ per cwt)

Hog Price Pork Cutout 5 Year Avg Hog Price

Hogs and Pork

Cattle and Beef

Lamb and Veal

295.00300.00305.00310.00315.00320.00325.00330.00335.00340.00345.00

J F M A M J J A S O N D

Weekly Lamb Carcass Cutout vs 5 Year Average ($ per cwt)

2015 5-year

150.00157.50165.00172.50180.00187.50195.00202.50210.00217.50225.00232.50240.00

J F M A M J J A S O N D

Weekly Dressed Steer Price and Weekly Boxed Beef Choice Cutout vs. 5 Year Averages ($ per cwt)

Steer Price Boxed Beef Choice Cutout5 Year Avg Steer Price 5 Year Avg Choice Cutout

Weekly Livestock, Poultry & Grain Market Highlights

Central Illinois Avg Corn Price ($/bu) 3.3700 2.6% -3.7%Central Illinois Avg Soybean Price ($/bu) 9.7700 0.8% 13.2%Central Illinois 48% Soybean Meal, Rail ($/ton) 320.40 1.2% 15.8%Hard Red Winter Wheat Truck to Kansas City ($/bu) 3.5150 3.6% -20.7%Dark Northern Spring Wheat, 14%, MN, Rail ($/bu) 6.7050 2.2% 10.7%Soft White Wheat Portland ($/bu) 4.5450 1.7% N/ASorghum, Kansas City, Truck ($/cwt) 5.2700 -2.0% -17.4%

Nat'l Delivered Whole Body Price (cents/lb) 85.39 2.1% -1.5%Est. Young Chicken Slaughter - Current Week (000's) 142,448 -8.7% N/AActual Slaughter of Young Chickens (000's) 149,923 -6.4% 29.8%YTD Actual Slaughter of Young Chickens (000's) 8,111,060 N/A 1.5%Actual RTC Pounds of Young Chickens (000's) 697,322 -7.6% 30.3%YTD RTC Pounds of Young Chickens (000's) 37,890,287 N/A 2.4%

Nat'l FOB Frozen Whole Body Price (cents/lb) 103.00 -3.9% -11.4%Actual Slaughter of Turkeys (000's) 3,374 -19.4% 52.5%YTD Actual Slaughter of Turkeys (000's) 217,135 N/A 3.7%Actual RTC Pounds of Turkeys (000's) 89,860 -17.5% 52.3%YTD RTC Pounds of Turkeys (000's) 5,378,111 N/A 5.6%

Combined Regional Large Eggs (cents/dozen) 135.54 1.0% 19.3%National Shell Egg Inventory (30 doz. Cases/000,s) 1411.6 17.6% N/AShell Egg Demand Indicator (SEDI) 16.70 0.08 6.60Central States Breaking Stock Av. Price (cents/dozen) 32.00 0.0% -30.4%National Breaking Stock Inventory (30 doz. Cases/000's) 299.1 18.3% N/AEggs Broken Under Federal Inspection (30 doz cases) 1,412,309 -3.2% 26.3%YTD Eggs Broken Under Federal Inspection (30 doz cases) 74,888,334 N/A 10.0%

Source: USDA AMS Livestock, Poultry & Grain Market News Portal

January 03, 2017

Current WeekChange From

Past WeekChange From

Past YearGrain

Broilers

Turkeys

Eggs

65.0070.0075.0080.0085.0090.0095.00

100.00105.00110.00115.00

J F M A M J J A S O N D

Weekly National Broiler Whole Body Delivered Price (Cents /lb)

2016 2015 5-year

85.0090.0095.00

100.00105.00110.00115.00120.00125.00130.00135.00140.00

J F M A M J J A S O N D

Weekly National Frozen Whole Body Hen Turkey FOB Price (cents/lb)

2016 2015 5-year

30.0050.0070.0090.00

110.00130.00150.00170.00190.00210.00230.00250.00270.00290.00

J F M A M J J A S O N D

Weekly Combined Regional Large Egg Price (Cents/Dozen)

2016 2015 5-year

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Market Update — December 30th, 2016

Dominick Russo and Fred Dial — Editors

The spot resin markets ended the year on an uptick; both Polyethylene and Polypropylene prices began to recover earlier in Dec

as material started to dry up. After a sharp downtrend, some processors seemed to be caught off guard as they were quickly

willing to pay several cents higher for material. The trading business was very good during the first half of Dec, which carried

the month, most market participants also concurred - the bulk of their business was completed by mid-Dec. There was limited

supply and transactions through the end of the year, while a large part of the industry took time off for the holidays. As the year

drew towards a close, there were very few fresh railcar offers seen as producers instead relied heavily on exports to clean up the

spot market. Significant railcar and packaging delays in Houston added to tightening supplies, which was somewhat countered

by local traders pushing to move out material that was already packaged and avoid end of year inventory tax. Sentiment has

turned from neutral to cautiously bullish. We foresee upward market momentum to continue at least into the first couple of

weeks of the New Year as rumors begin to swirl of a $.05/lb PE contract price increase for Feb.

Feb WTI Crude Oil futures gained $.70/bbl for the week and rose 45% during 2016, settling Friday at $53.72/bbl vs $37.04/bbl

a year ago. Feb Brent Oil added $.92/bbl to end the year at $56.82/bbl up just under $20/bbl during the year. Natural Gas saw

an even greater gain in 2016 adding nearly 60%, the February futures contract closed Friday at $3.724/mmBtu, up $.046/

mmBtu for the week. Significant gains were also seen in NGLs in 2016. Although Ethane dropped about a half-cent this week

to $.275/gal ($.11/lb), it is up 73% for the year; Propane jumped to $.715/gal ($.203/lb) up over 9% for the week and a whop-

ping 82% for the year. Ethylene was steady to fractionally higher for the week to $.2675/lb, however up 39% year on year; spot

PGP added more than a half cent nearing $.335/lb, up almost 14% for the year.

Polyethylene trading was lighter last week; market participants were scarce as players chose to take some time off rather than

pad the books with additional deals. Spot PE prices firmed up across all grades with limited Generic Prime railcar availability

seen. Those resellers who were around and interested in thinning inventories into year end were able to provide some liquidity;

though logistics challenges continued to loom over seemingly every transaction. Year end trade is always hectic, but more so

this year as Houston continued to be jammed with railcars awaiting placement and packaging. Adding to the higher spot prices

were processors and resellers realizing they may have missed the bottom as they rushed to fill any outstanding needs, wishfully

at early Dec levels. Export interest did wane last week, but was paramount in cleaning up surplus during most of the month.

Although there was good price volatility during 2016, prices for most commodity Polyethylene grades finished the year within

a cent or two of 2015 year-end levels. 2016 lows were put in place in February while completing a long down cycle which

began in 2014. From there the market steadily recovered and peaked in September, before giving back almost all the gains only

to again bounce these last few weeks in December. A $.05/lb contract price increase is being floated for February and could add

a little fuel to the fire before a glut of resin from planned production expansion hits the market in spurts throughout 2017.

The spot Polypropylene market found a bottom in early Dec as producers maintained lower operating rates while well-utilizing

the export market to move material and tighten supplies. Even rougher offgrade disappeared as the low-end cleaned up and

prices experienced a small vacuum to the upside. Some processors were seen scrambling to procure resin at bargain basement

prices, levels not seen in about 7 years. Spot PP prices continued to recover into year-end as fresh railcars were virtually non-

existent and resellers with material continued to inch up prices. Special year-end deals were not as plentiful as in years past

2016 was not kind to spot Polypropylene prices. The year began with the implementation of the final margin expanding in-

crease. Then a huge influx of imported PP flooded the market, capping prices before sending them sharply southward. The

imported material continued to flow keeping the market heavily supplied. There were a few failed rallies during the summer

and fall, and prices only finally found solid footing in late Nov / early Dec. We tallied up $.13/lb in spot PP losses in 2016,

nearly 21%.

December PGP prices dropped $.04/lb in Dec, but began to strengthen at year-end. Those processors whose PP contracts are

again tied to monomer saw a commensurate decline. We believe that the PP market has now bottomed and if producers con-

tinue to ration production rates and still shove serious volumes of resin offshore, there could again be meaningful margin ex-

panding increases on the horizon.

All of us at The Plastics Exchange want to wish you a Happy New Year, thank you for all of your support. Here’s to a prosper-

ous 2017! Michael Greenberg

312.202.0002

@ResinGuru

Disclaimer: The information and data in this report is gathered from exchange observations as well as interactions with producers, distributors, brokers and processors. These are considered reliable. The accuracy and completeness of this information is not guaranteed. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such a transaction. Our market updates are complied with integrity and we hope that you find them of value. Chart values reflect our asking prices of generic prime railcars delivered in USA.

bringing the market to you

HDPE Blow Molding

1 Year

Copyright © 2016 The Plastics Exchange, LLC | Patent Protected | All Rights Reserved.

Resin For Sale 11,097,600 lbs

Resin Total lbs Low High Bid Offer

PP Homo - Inj 1,899,128 0.435$ 0.500$ 0.440$ 0.480$

HMWPE - Film 1,427,748 0.510$ 0.570$ 0.490$ 0.530$

HDPE - Blow 1,388,920 0.480$ 0.560$ 0.480$ 0.520$

LLDPE - Inj 1,322,736 0.585$ 0.650$ 0.560$ 0.600$

PP Copo - Inj 1,242,000 0.425$ 0.520$ 0.460$ 0.500$

LLDPE - Film 1,210,920 0.500$ 0.620$ 0.500$ 0.540$

HDPE - Inj 1,109,104 0.515$ 0.560$ 0.485$ 0.525$

LDPE - Film 929,104 0.600$ 0.690$ 0.590$ 0.630$

LDPE - Inj 568,000 0.595$ 0.650$ 0.560$ 0.600$

TPE IndexSpot Range

PP Homopolymer

1 Year

Schreiber Foods International's Market Blog

Mandarin Orange Production: China

Posted: 04 Jan 2017 02:01 PM PST

Mandarin Orange production to finish early in China due to poor crop.

Our buyers have recently traveled to China and visited several mandarin orange packers in Zhejiang province (Ningbo

area).

There are several growing areas in China, like Hunan, Hubei, and Zhejiang Provinces. According to packers, the crop in

Zhejiang is some 40% shorter than in a regular year, while the crop is decent in the other provinces in terms of volume

but poor in quality as fruit is small due to lack of rain. These other growing areas are in the middle of the country and

domestic freight from Hunan and Hubei Provinces to ocean ports or to other factories in Zhejiang or Shandong Provinces

makes the raw material very expensive.

Also, it may be hard to believe, but factories are having a hard time hiring workers. Processing mandarin orange

segments requires a lot of manual labor and it’s a seasonal job. Some large factories pack nothing but mandarin oranges

and they are only open for 2-3 months per year, so a temporary and tough job is not very appealing to workers.

China is facing challenges regarding environmental issues. The country is very polluted and the air quality is bad; as we

can all see on the news and on the internet. The government is taking tough measures in order to “clean up” the air and

the land; these clean-up efforts affect the food processing factories as well: they must contain and clean their waste and

that costs a lot on money. Higher fruit prices, rising labor cost and expenses related to environmental clean-up contribute

to higher production costs.

On the other hand, China’s largest competition in this business, Spain, is experiencing a good season, with expectations

to exceed normal production volume due to strong demand. Chinese mandarins are subject to anti-dumping duties in

Europe that can make their product hardly competitive when the crop is abundant in Spain.

The USA remains China’s main export market and even though the cost of production seems to have increased we expect

the prices to remain around last year’s levels because of the decreased demand from Europe. Chinese packers

traditionally continue processing mandarin oranges through Chinese New Year that falls on January 28th this year but we

are hearing that production will be completed by end December or early January in most factories.

Tuna Fish: Current Standing

Posted: 04 Jan 2017 02:01 PM PST

Since the spring 2016 report, the market has remained a bit tight. Raw material costs, the barometer for finished product

costing, has remained firm after some increases in the 2nd quarter of last year. Prices have fluctuated in a fairly close

range since then, but the bigger dilemma has been the landings of the raw material. Processors have been going more

hand to mouth to fill orders rather than building a supply of raw material. The lower cost of fuel has helped the fishermen

control costs to a small degree, but historical catchings have been low. In the 4th quarter of 2016, higher ocean freight

rates have added to the cost. Tuna fish is still a reasonably priced protein and with broad consumer appeal.

Chunk Light Tuna: Pricing is stable, and possible increases are foreseeable in early 2017. Supply could be an issue as

well for reasonably priced chunk light tuna.

Tongol Tuna: The Tongol supply is fairly tight, and prices remain very strong. This is the ‘lightest’ meat in the ‘light’

category, which explains its wide appeal. Tongol is less expensive than Albacore with similar appearance. Our

Ambrosia® Tongol contains no vegetable broth.

Albacore: Pricing is steady and supply has improved a bit over the summer, but we are not in a comfortable place as far

as supply is concerned. The traditional fishing season for Albacore is April/May, so we are hoping for an improvement.

FYI – Tuna is generally caught by larger vessels out at sea and then frozen on board. Smaller vessels then deliver the

frozen tuna to land and it is kept frozen until ready for processing. When raw material is plentiful, building up stock is

possible.