Market News. Click on the link below to view updates: Market. Flour Facts. Market Update. Report - Eggs. Produce. Oil Market Watch.

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1 Click on the link below to view updates: Market Cheese & Butter Market Update Report - Eggs Flour Facts Produce Market Update Oil Market Watch Market News

2 Egg Market Week of October 20, 2014 Retail demand fair to fairly good. Supplies adequate. Market steady. The regional egg markets are as follows: Northeast Midwest Southeast South Central Lg Md Source: Esbenshade, Inc.

3 Weekly Market Highlights OCTOBER 16, 2014 Wheat futures prices are slightly higher this week, after last week s USDA wheat supply and demand forecasts fell short of trade expectations. Spring wheat basis premium prices remain firm. The spring wheat harvest is for the most part complete. While protein levels are very similar to last year s crop, a second year in a row without a glut of high protein wheat could keep high gluten flour pricing supported into next spring or summer. The basis news this week concerns winter wheat, which historically could be expected to fall due to large stocks and good prospects for the newly partially planted crop. It is highly unlikely we will see this trend play out this year or for some time to come due to more costly and more troublesome rail logistics. Export sales were disappointing which may have kept futures prices from showing more strength. There is talk that fund dollars could escape recent disappointing energy stock trends and move to commodity markets. This move could support prices for wheat and row crops. Durum prices continue to rise as harvest crop analysis delivers low marks to this fall s rain damaged crop. Bushel Price Maturing Flour Facts on Flour If bleaching describes the whitening of flour, what is maturing? For hard wheat flour, the term maturing implies the strengthening of dough forming properties, thus improving gas retention of the gluten. These maturing agents affect the physical properties of the dough and don t have any direct effect on the yeast. Two common maturing agents are potassium bromate and ascorbic acid. Breads treated with these agents will generally exhibit increased loaf volume, finer grain and improved external characteristics. Although they produce the effects just stated, they mature at different rates. Ascorbic acid reacts toward the end of mixing and into the dough stage. Bromate works during the proofing and baking stages. $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Futures & Basis Markets KC Future Spring 15% Basis (from MarketFax No.1 Northern Spring) Mpls Future Winter 13% Basis (from MarketFax 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.

4 Pro News Market Update Produce from the Ground Up For the week of: October 19 th 2014 Farro Chirashi- Sushi Ingredients 3 lb. liquid eggs 1 1/2 lb. faro 7 1/2 cups water 3 tbsp. rice wine vinegar 3 tbsp. sugar 2 1/4 tsp. salt 3 cups plus 2 tbsp. peeled, thinly sliced cucumber 3 cups plus 2 tbsp. peeled, shredded daikon 3 cups plus 2 tbsp. matchstick carrots 1 1/3 cups edamame 1 cup plus 1 tbsp. thinly sliced scallions 1 1/2 cups teriyaki sauce Kale chips (recipe follows) Kale Chips 1½ qt. kale in 2-in. pieces, ribs removed 1½ tbsp. olive oil Pinch kosher salt Directions 1. Preheat oven to 350 F. Line sheet pan with parchment paper sprayed with nonstick cooking spray. 2. Pour egg mixture onto prepared pan and place in oven. Bake 6 to 8 minutes or until egg is completely set. Chill egg and cut into 2-inch-long strips. 3. In large saucepan, bring water to a slight simmer. Stir in farro. Cook 30 to 35 minutes or until farro is tender; drain. 4. Combine rice vinegar, sugar and salt. Pour over warm farro; let stand 5 to 10 minutes. 5. Combine cucumber, daikon, carrots, edamame and scallions in medium bowl. 6. To serve, portion 1 cup farro into a bowl. Top with 1/4 cup egg strips and 1/2 cup vegetable mix. Drizzle with 1 tablespoon teriyaki sauce and top with a kale chip. Kale chips 1. Preheat oven to 275 F. 2. Toss kale with olive oil and salt. Spread on sheet pan. 3. Put pan in oven and bake 20 to 25 minutes or until crispy, stirring halfway through. 4. Cool to room temperature. Source: Culinary Institute of America by Foodservice director.com

5 ASPARAGUS -- This market is still tight on product with most suppliers. This market is firm. Mexico production remains light to moderate. Supplies will continue to be better on standard and small sizing. Extralarge and Jumbos will be tight and will command a higher price. Production in Peru is moderate. AVOCADOES -- Mexican harvest of new crop fruit is going well, and care is being taken to harvest only mature fruit. Pricing and volume will stabilize as a normal flow of fruit develops. This is a time of transition; fruit will take longer to ripen, have a tendency to remain green when ripe, and have thicker skin making it difficult to detect degree of ripeness. Lenticel damage can also be seen this time of year. This is when the small bumps on the avocado skin become damaged and darken several days after packing and shipping. The fruit has just been through the rainy season in Mexico, and the new crop exterior of the skin is tender. Steps are being taken to ensure that all harvested fruit is mature and will ripen evenly. Supplies are improving; better on 60s and smaller. BROCOLLI -- Production is lighter this week due to the excess heat this past week. Broccoli growth has been stunted, and the heat has caused some pin rot and uneven bead sizing. The market remains steady. CARROTS -- Availability has tightened for jumbo carrots in California as size and yield have declined, the result of a slower growth cycle during the late season fall harvest at higher elevation (2,150 ft.) in the Cuyama Valley of Southern California. Prices will trend higher until the harvest returns to the Southern San Joaquin Valley (Bakersfield). CAULIFLOWER -- This market is steady for now. Early forecasts indicate this commodity will start to be lighter in availability in Salinas and Santa Maria over the next few weeks. CELERY -- This market is steady, overall. The quality continues to be good out of Salinas and Santa Maria. Local production is winding down in many areas across the country. Oxnard production is on schedule and is expected to begin the first week in November. LETTUCE -- It is hot in California. Record temperatures were recorded up and down the coast last week and over the weekend. The heat has really stressed the crops. Lettuce quality is not holding up even prior to the heat but now it will be much more difficult. Fields have decay and bottom rot brought on by heavy dew in the mornings and the hot daytime temps. Seeders will continue to cause issues and likely worsen with the latest round of weather. Lettuce crops are still harvesting a week ahead of schedule so timing of the transition to the desert is still uncertain LEAF LETTUCE / ROMAINE -- Fields of romaine were reduced to rows of dead and dying plants caused by a root disease (sclerotinia) that was amplified by the heat wave. PEPPERS/CUCUMBERS/SQUASH -- Peppers -- Prices are moving higher for green bell pepper growers in Central California with late-season production volume on the decline. New crop green bells are now available in Coachella, with at least one additional shipper beginning next week. Field grown red and yellow bells from California are in good supply, along with hothouse colored bells from Mexico; prices are expected to firm next week from current bottom levels. Prices are strong for green bell peppers in the East. North Carolina is now the primary district. Rain is in the weekend forecast, potentially curtailing supply and causing issues with quality. Cucumbers -- With Florida now working cukes, the market has softened a bit. However, rain is expected in Georgia over the next day or so and many growers there are going back over older fields which should yield less. The market may firm back up toward the end of the week. Squash -- California squash is currently shipping out of Santa Maria and Fresno. Supplies are improving. Demand is being met by current supplies and market is on its way to settling slightly. Nogales production is

6 improving. Sonoran production ought to pick up pace from here on out. Both Georgia and Florida have squash, and Mexico not only has it, but was offering very good pricing. POTATOES -- All size cartons have tightened up as harvest is winding down, and growers are focusing on storing the remainder of their crop. Mid-range and smaller sizes are in better supply than larger size cartons. We are seeing a two-tiered pricing structure as both Burbank s and Norkotah varieties are being shipped, with Burbank s garnering higher returns. ONIONS -- Growers are almost done harvesting their crops for the season and should finish by next week. Supplies are good with moderate demand is keeping the onion market steady on all sizes and colors. There are some deal being made on small Jumbo s so be careful on what you are buying. Look for this to continue till the growers get everything into storage. Quality is good out of all areas. TOMATOES Rounds: The round tomato market is trending lower this week as additional supplies from the east enter the market place. There is still a shortage of big size fruit, with pack outs very heavy to 6x7 size. This is causing a bigger spread than normal in the market between sizes. Cherry and Grape: Grape and cherry tomatoes took a little dip in pricing with some additional supplies showing up in both the east and west. The market price still remains higher than normal and is not in a "free-fall", but is enough to give some relief to the overextended welcome of the previous month's pricing. Roma: Roma tomatoes are scarce out of all growing regions. The Eastern shore does not plant an early fall crop of Romas. The rain in Mexico has knocked growers out of production for a several days; the summertime regional growing areas are winding down, leaving Central California to bare the brunt of the demand of the country. APPLES -- Demand and movement are very strong. Supplies are tight on all grades. Fruit is running heavy to the larger sizes. Quality is extremely good and producing mostly premium grade. Cameo and Pink Lady apples will come off the first couple weeks of October. Just about everything else has started. Pear demand is very good, especially for 110s & smaller. Supplies are tight on these sizes. Crop is running heavy to U.S. #1, peaking 90s larger. Trucking has been a challenge; rates are high for this time of year. STRAWBERRIES -- The season is winding down in Salinas-Watsonville, and with the heat wave that is in the forecast, the potential for an early finish is anticipated. A wide range in quality and price characterizes the current market, with the premium quality being harvested in the new crop districts of Santa Maria and Oxnard. Driscoll will have Oxnard as their primary district by mid-october, with the complete lineup of mixed berries available. With rain in the forecast for next week, the Salinas/Watsonville season may be coming to a close. Central Mexico and Oxnard are the next areas, and volumes could be getting slightly better. If weather cooperates, quality should be getting better. Look for steady prices. CITRUS Lemons: The market continues to be strong although an increasing supply out of the desert regions is helping to take the pressure off. The 140 s and larger continue to be difficult but we see an increasing supply on these as well. Overall, we expect the market to return to a more normal supply situation in November. Oranges: Navels are expected to start between October 20th and November 3rd. Due to the lack of rain, sizing is expected to be very small this year. 113s/138s will be abundant. Meanwhile, look for the Valencia larger shippers to transition into the navel season. Limes: I wonder, other than Creighton for his gin and tonic, does anyone else really care? Please advise.

7 GRAPES My first time ever, to have black seedless, I will report that they are good. The grape movement is very good. Most shippers have little to no inventory on red seedless grapes. The predominant variety on green seedless is Autumn King, and they are moving very well at this time. The market is very firm on all varieties. It appears there is still a good amount of grapes to pick, but waiting for color and sugars. There are good supplies of Red Globes and fair supplies of Autumn Royals. MELONS -- Cantaloupe -- The current supply of melons overall is extremely short. The market is climbing fast on all sizes. The Westside district is done now. The desert is starting off extremely slow with rains last week hampering supplies. Quality is fair to good on the new crop from the desert. Honeydew: The Westside district has finished. The market is picking up on all sizes. Good demand along with lower supplies has created a rising market. Mexico and the desert have started and are heavy towards 4 s, 5 s and 6 s. Quality is fair to good. Ron Orr Executive Director [573] ronorr@promarkproduce.com

8 October 17, 2014 Market Watch Market Watch

9 Cents per Lb. Misc. Influences The US harvest has been further delayed by the rains throughout the Midwest. There is a risk-off mentality in global financial and commodities markets. The large US crop will weigh on prices in the coming months. Continuing logistics issues helped support prices. Bullish Recent Trend Neutral October 17, 2014 Soybean Oil Market Pricing Trend Bearish Key Factors Soybean Oil Impact Crop Updates USDA s October Crop Production report indicated the 2014 soybean yield at a record 47.1 bushels per acre, up from 46.6 bushels last month. The USDA last estimated that 40% of the crop is harvested in comparison to the 5 year average of 53% for this week. 91% of plants are dropping leaves vs. 83% last week and 91% average. Crop conditions were unchanged with 73% of the crop rated good to excellent. SAFRAS estimated 5.7% of the Brazilian bean crop has been planted. Heat and dryness are delaying planting in the north, while wet conditions have delayed Parana. September NOPA crush was reported at million bushels, down from in August, and below the average trade estimate. NOPA soybean oil stocks were million pounds, also well below estimates but not a surprise given the slow crush. Export inspections were in-line with expectations. For the week ending October 9th, there were 1,428,094 MT of beans inspected compared to 991,780 MT the previous week and 1,290,861 MT the previous year. China was the destination of choice taking 73.9% or 1,055,622 MT. Value Ranges * Flash Summary * Value ranges represent good booking levels if the market dips into this range Expected Value Range $ $36.00 cash 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. Market Watch

10 Corn Oil Cents per Lb Recent Trend Corn Oil Market Pricing Trend Key Factors Larger US and global corn and oilseed supplies will keep a lid on prices. Crop Updates Corn harvest is approximated to be 25% complete headed into next week, with even more delays due to rain throughout the Midwest. Overall yield reports remain very strong, but will start to decrease as the harvest moves north and west, and some initial results from these areas have been more variable. Strategie Grains raised their EU production estimate by 2 MMT to a record 73.3, up 14% YOY. US corn production is estimated at 14.5 billion bushels, 1% higher than last month s estimate and 4% higher than last year. Yields are estimated at a record bushels per acre. Harvested area is expected to be 83.1 million acres. Flash Summary Misc. Influences Farmers will likely store corn and sell beans this year. Harvest delays due to rain kept a floor under prices. Once fund buying stopped, corn prices collapsed. Bullish Neutral October 17, 2014 Bearish Impact USDA has announced the sale of 120,000 tonnes of US corn to unknown destinations for delivery. Producers are still expected to store as much corn as possible due to the low prices, but they still have old crop corn to sell, too. That could mean that more corn will have to come to the market at harvest, with most of the selling likely to be seen at the end of the harvest. Value Ranges * * Value ranges represent good booking levels if the market dips into this range Expected Value Range $ $41.00 cash 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. Market Watch

11 Cents per Lb Recent Trend Misc. Influences Canola Oil Market Pricing Trend Key Factors Advancing harvest and increasing crush continue to pressure prices. Logistics issues continue with record production in the US and Canada. Crush is being limited by poor margins. Canola prices need to decline in order to be competitive with other oils. Bullish Neutral October 17, 2014 Bearish Canola/Rapeseed Oil Impact Crop Updates Harvest progress should be good this week putting additional pressure on the market. U.S. canola production in 2014/15 is forecast at a record 2.5 billion pounds based on near-record acreage (1.71 million acres) and an above-trend yield (1,622 pounds per acre). North Dakota s yield is forecast at 1800 pounds per acre, 20 pounds lower than last year and the third highest yield ever. Canadian canola oil production is forecast at MMT, up from last year. Global production is expected to be MMT vs. 26,053 MMT last year. Despite a bumper domestic canola harvest this year, near-record U.S. imports of 2 billion pounds are still expected due to recent expansion of crushing capacity. Currency and mineral oils remain significant factors, as well as RFS potential announcements. The Canadian Dollar has lost 5% of its value against the US Dollar since July. 2014/15 crush is forecast at a record 4 billion pounds. Canadian markets were closed Monday in observance of their Thanksgiving holiday. Value Ranges * Flash Summary * Value ranges represent good booking levels if the market dips into this range Expected Value Range $ $41.00 cash 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. Market Watch

12 Cents per Lb Palm and Coconut Oil Market Pricing Trends Palm Olein Tropical Oils Coconut Crop Updates SPOMA production for 1-10th October 2014 numbers as follows: FFB down 11.16%, OER up 0.30%, production - down 9.78%. Indonesian production so far this month has been rumoured to be steady to slightly higher. Both Malaysia and Indonesia are seeing spotty showers and storms. This could lead to a decline in production in parts of both countries. Recent Trend Misc. Influences Key Factors The decline in crude oil along with weak exports continue to weigh on palm oil prices. Follow through selling from slow export numbers pushed prices lower. Increasing US crop estimates and the advancing harvest pressured prices. Strong nearby demand is being seen due to weaker currencies against the US Dollar. Impact Flash Summary First quarter is usually a strong period for prices, but that s when China would be stockpiling for Chinese New Year. This year, stockpiles have arrived early. Indonesia continues the zero export duty policy, but of major impact will be the decision of India to put on import duties to protect farmers in India and refinery assets in India. A Reuters poll expects palm oil prices at the end of the year to average 2,161 (not far from current prices) vs 2,659 at the end of last year. Shipments of Malaysian palm oil as of 10/15 were reported 16.52% lower (at 626,482 MT) by ITS and 15.5% lower (at 621,145 MT) by SGS. It has been a quiet week as India is preparing for next week s Deepavali celebration. Bullish Neutral October 17, 2014 Bearish 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. Market Watch