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Dairy Market

Summary

Egg Market Week of October 24, 2016

TONE: Retail demand fairly good to good. Larger sizes close and

held confidently. Market firm.

The regional egg markets are as follows:

Northeast Midwest Southeast South Central

Lg .71 .68 .72 .71

Md .58 .55 .56 .56

Source: Esbenshade, Inc.

Weekly Market Highlights

Wheat futures prices are higher since our last report. Kansas City winter wheat futures gained twenty-six cents

per bushel, or nearly 7%.

Dry conditions in the states recently planted or currently planting hard red winter wheat could influence the

market’s direction in coming months.

Basis premium prices for most grades of wheat remained firm to higher as millers bid what they had to in order

to ensure a steady supply of wheat to mill.

Corn and soybean harvests are progressing well, but will continue to distract sellers likely for two or three more

weeks, possibly continuing to support wheat and resulting flour prices.

Flour prices remain attractive and below last year’s prices despite recent market uptick.

Facts on Flour Bleaching Flour

The term “bleaching” is a traditional baking industry term that refers to both the whitening and maturing (aging) of flour. Bleaching best describes the process of whitening. Technically speaking, the carotenoid (yellow) pigments in the flour are oxidized to produce whiter flour. Oxidization will occur naturally, over time, with the exposure of flour to air. Historically, millers would age flour for several weeks to achieve white flour. This natural oxidation, however, was an irregular process requiring considerable time and space. Today the bleaching process is accomplished by the use of bleaching agents. The two most common bleaching agents are benzoyl peroxide and chlorine gas. Flours treated with bleaching agents must be labeled as bleached flour. Next week we’ll talk about flour maturing.

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Futures & Basis Markets

KC Future Spring 15% Basis

Mpls Future Winter 13% Basis

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.

OCTOBER 20, 2016

Produce Market Update For the week of: October 23rd 2016

“Produce from the Ground Up”

Brussel Sprout Salad

Brussels sprouts are cold weather veggies that offer seasonal benefits too. With two and a half times the daily requirement of vitamin K in just one cup, they also contain more than a day’s requirement of vitamin C, which is so important for your immunity to prevent colds and flu. They’re also high in fiber for a healthy digestive tract. While I love them sautéed and roasted, this salad is something that I enjoy serving as an alternative to a basic green one. It’s wonderful for lunch or as a side dish to any meal you dish up this winter. I use ALOHA Daily Good Greens powder in the dressing for a nutritional boost; they add a savory flavor to the dressing and are delicious. This is a variation on a recipe from my new book,

Discover Your Nutritional Style, offered, Holli Thompson, Author and Creator of Nutritional Style tm.

Ingredients Dressing

1 lb Brussels sprouts, whole or Mann Sliced 6 tbsp extra virgin olive oil

1 cup roughly chopped raw pecans 2 tbsp apple cider vinegar

1/2 cup dried cranberries 1 tbsp honey

1/3 cup crumbled raw goat cheese Sea salt to taste

3/4 packet of ALOHA Daily Good Greens

Instructions Trim the Brussels sprouts. Slice them into thin ribbons. Put the slices into a large mixing bowl. Add the pecans, dried cranberries, and goat cheese to the bowl and toss lightly to mix. In a small mixing bowl, whisk together the olive oil, cider vinegar, honey, sea salt, and Daily

Good Greens. Pour the dressing over the Brussels sprouts mixture and toss until all the ingredients are well coated. Serve immediately or let sit for 20 minutes to allow flavors to meld. Note: The Daily Good Greens, I could not find, so I did not include them, all though I heard they were at the PMA in Orlando. Recipe Source: Yummley.com Photo: Credit: Mimi

McCormick

AVOCADO -- Market is Extreme There were 900 picking crews back in the Mexican avocado groves on Saturday, Oct. 15, and more than 1,000 crews were picking fruit Monday, Oct. 17, so the expectation is that millions of pounds will soon be flowing to the United States to start to fill the empty pipeline. For the past couple of weeks, supplies have been very limited as a dispute in Mexico kept pickers away from the fruit. APEAM, which is the trade organization representing Mexico’s avocado producers and exporters, noted that while the impact of the dispute was spread throughout the avocado-producing region, in reality it was more localized in nature. A carton of avocados was selling for $60-$70 last week, with some terminal market operators said to be getting more than $100 per carton. In the article from the produce news, where the above information was taken, they also noted with the pipelines virtually empty and it could well be post super bowl, before we see the return of more affordable avocado pricing. ASPARAGUS -- Weather is warming up just ahead of the peak in Northern Baja, we should see good volume through the end of the month, market is steady, and sizing is good. The weather in both Peruvian growing regions is good, and volume is very heavy, and will continue to be for the next 4 weeks. BROCOLLI – Supplies are much lower this week. Price remains steady. Good green color and texture. CARROTS -- Carrot supplies and market are steady, with very good quality being reported. CAULIFLOWER -- Increased demand to begin the week has cause shippers to firm up pricing. The past weekend’s weather will bring on supplies, so the market has the opportunity to trend lower. Quality is really nice with little bruising. CELERY -- Supplies are plentiful, with many growers in Salinas now. Quality is good and prices are low. Some light insect damage and light dirt in bottom of stalks. LETTUCE -- Lettuce in Huron has begun. Weights are averaging 40-43 pounds. Production in Salinas and Santa Maria continue. Rain followed by warm temperatures will cause for some quality issues, mildew being on the top of the list. Other issues expected to be seen include lightweights, pinking and slight puffiness. Weights are averaging 37-42 pounds on palletized. Yuma is expected to begin production at the end of October to early November. LEAF & ROMAINE -- Supplies continue to be good with little demand. Insect damage, brittle, fringe burn, light dehydration, frog skin, seeder, occasional leggy continue to be common defects showing up in all growing areas with all leaf items. A few samples have also been showing up with internal tip burn, mildew and mildew stain here and there. Weights range from 17-25 lbs on red leaf and green leaf with romaine ranging mostly from the lower to mid-30s depending on shipper and field location. SPINACH – Supply is good and demand is strong. Quality has improved. We are still seeing some sun scalding and tip burn, but this has improved. There have been some reports of insects, but this is getting better.

PEPPERS/CUCUMBERS/RADISH/SQUASH -- Peppers -- Green bell market volume is very light this week. We should see Coachella starting up in 10 days from now. Red and gold bells volume decreasing in California; we should see some red and yellow bells starting in Mexico this week. Cucumbers -- market is strong with fewer supplies out of Baja. Nogales has started crossing, but limited on Volume. Radish -- Quality is good! The supply is reported as plentiful. Squash -- Zucchini and yellow squash finishing up in California. We will see more volume out of Mexico.

POTATOES -- Demand is light out of all growing areas Idaho, Washington, Colorado and Wisconsin. Quality is being reported as good. Sizing is heavy to the larger sizes peaking on 60/70 count potatoes. Harvest is around 95% finished with some growers already done. Idaho received couple inches of rain over the week which will delay harvest until the field dry out. Colorado growers have already been dealing with 10 days of light frost. Luckily most growers are finish with harvest out this area. Once harvest is under hoops we could see the market firm up slightly. Market is currently steady out of all areas. ONIONS -- Onion Business market update; Baker Packing in Ontario, OR, said business at Baker has been “very consistent for the last three to four week,” noting with this consistency it’s surprising that the market has been dropping. “There are a lot of growers pressing to get their onions out of the field, which has been some of cause for the market to drop,”. “On our end, we are virtually done with harvest with only about 20-25 acres left to come in. So we really aren’t feeling that pressure.” He said that aside from the holiday push, he sees the market leveling off once the other growers are finished harvesting. “Once that pressure is off, we should see the market stabilize, and we can start selling onions at a profitable level,” “One bright spot for us is that the recent news that Japan may be in need of imported onions may help the market.” That of course on the heels of the typhoons that hit major horticulture fields in that country. He also reported Baker onion quality is very good to excellent, and all sizes and colors are available.

. TOMATOES -- Rounds: The supply of Californian tomatoes is about the same as last week. Rain has not had too much effect on the harvest. Some shippers were out of the fields for a few days letting the crops dry out before going back in. The Mexican vine ripe supply has tightened up because of the few days of not picking the gas greens, causing the markets to rise. Florida has started in a small way, but not enough volume to take demand off of the Western crop. Most of those tomatoes are staying East. Quality continues to range from poor to good at this time Grape: The grape market is still extremely tight. There seems to be heavy demand and high markets in both the East and the West. Cherry: are very short, especially in the West. They are able to sell out every day at 26.95. There are more cherry tomatoes available in the East, but demand is very heavy. Market should remain strong for at least the next week, and maybe even beyond that. Roma: There is more volume available this week. The higher prices from the last two weeks curbed the demand. Baja, Mexico is breaking new fields so there is more volume crossing. Gassed Roma’s from Central Cal are still in very short supply. Roma’s are crossing from mainland Mexico and are crossing into McAllen, and a few in Nogales. Volume is steady. Quality is hit or miss in all locations.

APPLES / PEARS -- Washington is getting some rain and it is expecting it to fall for the next few days. Braeburn apples were supposed to start today, but due to the rain that has been put off until the weather gets better. Some of the other varieties that are still on the trees are Red del, Granny Smith & Pink Lady apples. Supplies remain strong on the large size apples. The foodservice size are the ones that are tough to obtain with any volume. STRAWBERRIES -- Watsonville- Salinas supplies slowly decreasing, light rain this weekend could slow down production. Good supplies coming from Mexico thru McAllen, Texas. Market is steady, with good quality in both areas. That said, samples have been showing up with bruise, soft shoulder and misshapen appearance. White shoulder, overripe, dried and or missing calyx have been seen occasionally. Overall quality remains favorable CITRUS -- Lemons: We are seeing very short supply on 200's with high prices. Mexico has 1-2 weeks left. District III will have a good volume, we have all sizes here. This year, due to the rain this past winter and the favorable growing conditions, all we have is big fruit. We are seeing this market slowly improve and expect to see it get better in the next few weeks. Quality Is improving and should keep getting better as we go through October. We expect this market to improve week to week going forward. Oranges: Valencia -- are pretty much finished officially, however off the record they should have stopped shipping 4 to 6 weeks ago, as quality was pathetic at best. Navels -- are starting and will peak on small sizes 138-113-163, 88, 72 & larger will be very tight. Limes: Limes are on a path towards similar pricing on all sizes. Demand is good on all sizes across the board. Limes are peaking on the 230ct. Quality is improving overall with less and less leaf shading (yellow color) showing up and fewer stylar end breakdown showing up from weather. New crop limes are being harvested and all sizes are coming in so quality is 100% better. The market is lower on all sizes.

GRAPES -- We have been blessed with great weather and are continuing to pack scarlet royals, vintage, autumn royal and red globes. All grapes are in excellent condition with great quality. MELONS -- Cantaloupe -- The melon market is almost to “demand exceeds”, with prices much higher.

Melon supplies are steady with the West Side/ Central Cal winding down and the desert picking up in volume. Weather pending ,there is still a handful of shipping harvesting on the Westside this week, with maybe a couple going into next week. Honey Dew -- Demand has increased over previous levels while supplies have lightened up. Honeydew will be done by the end of this week in the Westside, but desert & Nogales/ Mexico will pick up in volume. Quality on both Cantaloupe & Honeydews is mixed.

WATERMELONS -- As we have come to expect, [even though we make the same request every year], the local melon deal came to an abrupt end, on not one of their best seasons. Supplies of seedless watermelon will stay on the tighter side this week as we are transitioning from domestic to Mexican supplies. With California finishing, effects of rains on Midwest and Mexico supplies are becoming more pronounced. Expect to see these conditions continue until the third to last week in October.

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

Market Watch . . . . . . .

Market Watch

October 21, 2016

Market Watch . . . . . . .

• Robust demand outlook continues to support.

Soybean Oil

• US soybean conditions reported unchanged at 74% G/E vs. 64% last year.

• US soybean harvest had a strong week moving to 62% complete, up from 44% last week; however, still behind last year’s 73% pace.

• Brazilian soybean planting reported at 17% complete vs. 13% last year and 16% average.

• Argentine soybean planting reported to start up this week. The estimates for acreage are down 3% from last year.

Crop Updates

Expected Value Range $31.00 - $33.00 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

Oil receipts continue to be cancelled.

Specs still near record large length in soyoil.

A large US crop nearly harvested.

Misc. Influences Impact

Key FactorsRecent Trend

October 21, 2016

BearishBullish Neutral

• NOPA crush for Sept. reported Monday at 129.4 milbus vs. 126.7 last year, 131.8 last month and 127.7 average analyst estimates.

• NOPA stocks were 1.376 bln lbs. down from last month at 1.62 and last year at 1.355. This figure fell well below estimates for 1.5.

• NOPA yield was 11.76 lbs./bu, down slightly from last month’s 11.81, but above the 11.45 last year.

• Specs are holding on to long positions. The CFTC report this afternoon will show activity as of Tuesday. The market is at risk for correction at anytime, although demand driven markets are sustainable. The demand outlook will be watched closely.

Flash Summary

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• Flat after a bit of pressure seen last week.

Corn Oil

• US corn crop conditions were raised to 74% G/E vs. 73% last week and 68% last year. A move higher this far into harvest is a positive note for the crop. Recent yields have been reported to be a bit stronger.

• Harvest is 46% complete, up 9% from last week, as farmers look to focus on getting the soybean crop out of the ground first.

• BAGE reported Arg. corn planting progress at 35% complete vs. 32 last week and 32 last year.

• BAGE continues to forecast planted area at 4.9 mln ha, up 27% from last year.

• Rains are forecasted across the western portion of the Corn Belt, where the majority the crop is yet to be harvested.

Crop Updates

Expected Value Range $44.50 - $46.50 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

• We haven’t heard much news of corn oil export demand through the mid-month, but the trend has been a stronger export program this year vs. last.

• US and Mexico continue to dispute sugar imports.

Flash Summary

BearishBullish Neutral

World corn production is shrinking.

US corn crop is in harvest.

HFCS demand to be watched.

October 21, 2016

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Production figures shrinking.

Steady buying has supported the market.

Nearby supplies remain tight.

• Harvest is nearing completion.

Canola/Rapeseed Oil

• The current forecast calls for above average temps with little rain. If these follow through, this will allow farmers to get back into the fields and continue to progress the harvest.

• Early snows have led to poor harvest conditions. • The past week’s harvest was disappointing as the major

canola growing providence of Saskatchewan made a 1% move, week-over-week, moving the total harvest to 78%. Last year at this time they were nearly complete at 97%, which is also in-line with the historic average pace.

Crop Updates

Expected Value Range $37.00 - $39.00 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

• Production estimates have been seen drifting lower. StatsCan is currently at 18.3 MMT, nearly exactly matching last year’s final production figures. Other private forecasts were 20+, but recently we haven’t heard anyone shouting out figures that high.

• Weakness in the Canadian dollar was seen this week, making canola more attractive to the international buyers.

Flash Summary

BearishBullish Neutral

October 21, 2016

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• Spillover strength from Chicago.

Tropical Oils

• Indonesia continues to fire up their production figure and swallow most of the export interest. This will allow Malaysia to build up stocks from their current low levels.

• Philippine copra production saw a glimpse of recovery this week. We will watch the coming week to see follow through. One week doesn’t make a trend. Tightness is still a major factor.

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

Strong Indonesian production.

Low Malaysian palm stocks supportive.

Malaysia production slowly strengthening.

October 21, 2016

• SGS reported Malaysian 1st-20th exports down 12%. A note out of the report was that it wasn’t a single destination that was down substantially, but all major importers were down slightly. If demand continues to go to Indonesia, then it shouldn't take long for Malaysian stocks to build back to a more comfortable 1.8-2.0 MMT, from the tight 1.5 seen on the Sept MPOB report.

• Vessel line-ups in Indonesia are up to 10 days as the transportation struggles to handle the increase in production and export market interest.

• Consumer buying has been decent this week as India continues it daily pricing. China was active earlier in the week, but fairly quiet yesterday.

Flash Summary

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Weekly Livestock, Poultry & Grain Market Highlights

Nat'l Purchased Wtd Avg Price - Barrows & Gilts ($/cwt) 46.42 -0.4% -33.8%Pork Carcass Cutout FOB Plant ($/cwt) 72.84 0.1% -18.0%Segregated Early Weaned (SEW) Feeder Pigs ($/head) 13.30 -38.2% -63.8%Iowa/So. Minn Avg Weight Barrows & Gilts (lbs) 281.2 0.1% 0.0%Est. Hog Slaughter 2,304,000 -4.9% -0.6%YTD Est. Hog Slaughter 91,038,000 N/A 1.1%Est. Pork Production (mil lbs) 482.9 -4.7% -1.7%YTD Est. Pork Production (mil lbs) 19,217.7 N/A 0.5%

Live Wtd Avg Steer Price, 5 Area FOB ($/cwt) 97.59 -3.3% -26.6%Dressed Wtd Avg Steer Price, 5 Area Del ($/cwt) 153.93 -3.2% -24.9%Boxed Beef Cutout, Choice ($/cwt) 182.43 -1.2% -12.9%Boxed Beef Cutout, Select ($/cwt) 172.89 -1.8% -15.4%Boxed Beef, Choice/Select Spread ($/cwt) 9.54 0.88 -178.47By-Product Drop Value, Steer ($/cwt live) 11.46 -1.0% -2.8%CME Feeder Cattle Index ($/cwt) 123.49 -2.7% -34.3%Texas Avg Live Weight Slaughter Cattle (lbs) 1,347.0 -0.2% -0.5%Texas Percent Slaughter Heifers 35% 6.1% -2.8%Est. Cattle Slaughter 601,000 -0.7% 5.3%YTD Est. Cattle Slaughter 23,569,000 N/A 4.7%Est. Beef Production (mil lbs) 502.8 -0.5% 3.2%YTD Est. Beef Production (mil lbs) 19,412.0 N/A 4.8%

Slaughter Lamb, Choice & Prime, Wtd Avg Price ($/cwt) 145.41 -3.6% -8.3%Lamb Carcass Cutout ($/cwt) 324.25 1.1% -0.6%Est. Sheep Slaughter 38,000 0.0% 0.0%YTD Est. Sheep Slaughter 1,574,000 N/A 0.1%Est. Lamb Production (mil lbs) 2.4 0.0% -4.0%YTD Est. Lamb Production (mil lbs) 108.6 N/A -1.5%Veal Carcass Wtd Avg Non-Packer Owned ($/cwt) 316.29 -0.4% -28.7%Veal Carcass Wtd Avg Packer Owned ($/cwt) 312.16 -1.2% -32.3%

October 17, 2016

Current WeekChange From

Past WeekChange From

Past Year

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

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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 ($/bu) 3.3250 6.6% -7.5%Central Illinois Avg Soybean Price ($/bu) 9.3000 0.5% 5.9%Central Illinois 48% Soybean Meal, Rail ($/ton) 319.60 -0.3% -4.0%Hard Red Winter Wheat Truck to Kansas City ($/bu) 3.3775 4.6% -23.0%Dark Northern Spring Wheat, 14%, MN, Rail ($/bu) 6.4100 -4.6% 2.2%Soft White Wheat Portland ($/bu) 4.7150 2.1% -12.8%Sorghum, Kansas City, Truck ($/cwt) 5.1000 -1.0% -19.0%

Nat'l Delivered Whole Body Price (cents/lb) 70.26 -0.5% -5.8%Est. Young Chicken Slaughter - Current Week (000's) 162,694 -1.3% N/AActual Slaughter of Young Chickens (000's) 162,797 -0.8% 2.5%YTD Actual Slaughter of Young Chickens (000's) 6,395,091 N/A 1.2%Actual RTC Pounds of Young Chickens (000's) 794,319 1.9% 6.5%YTD RTC Pounds of Young Chickens (000's) 29,787,858 N/A 2.1%

Nat'l FOB Frozen Whole Body Price (cents/lb) 123.04 -1.2% -9.2%Actual Slaughter of Turkeys (000's) 4,078 -5.5% -5.7%YTD Actual Slaughter of Turkeys (000's) 168,469 N/A 3.5%Actual RTC Pounds of Turkeys (000's) 99,494 -8.6% -4.7%YTD RTC Pounds of Turkeys (000's) 4,183,944 N/A 5.5%

Combined Regional Large Eggs (cents/dozen) 43.07 -15.1% -71.9%National Shell Egg Inventory (30 doz. Cases/000,s) 1327.2 -2.7% N/AShell Egg Demand Indicator (SEDI) -4.40 -0.08 9.50Central States Breaking Stock Av. Price (cents/dozen) 17.00 -10.5% -85.3%National Breaking Stock Inventory (30 doz. Cases/000's) 297.3 0.0% N/AEggs Broken Under Federal Inspection (30 doz cases) 1,578,348 0.0% 22.5%YTD Eggs Broken Under Federal Inspection (30 doz cases) 58,320,515 N/A 8.0%

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

October 17, 2016

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 — October 14th, 2016

Dominick Russo and Fred Dial — Editors

The spot resin markets were a bit slower this past week, affected somewhat by the Columbus Day and Yom Kippur holidays. There was a limited number of fresh prime PE and PP railcar offers, but we still had a consis-tent flow of offgrade material. Resellers, both in Houston and around the country, continued to make their prime warehoused inventories available, aiding spot market liquidity. Polyethylene prices were mildly mixed, with some premium adjustments seen between grades. Spot Polypropylene prices moved moderately higher. Export interest for both PE and PP remained stronger than we had seen during Sept, which had sagged. Most major energy markets continued to rally. Nov WTI Crude Oil futures closed above $50/lb every day of the week, ending Friday at $50.35/bbl, a gain of $.54/bbl. Dec Brent Oil rose just 2-cents to $51.95/bbl. Nov Natu-ral Gas rallied further, adding nearly a dime to end the week at $3.285/mmBtu – a new high close for the con-tract. Ethane gained $.015/gal to $.255/gal ($.107/lb) and Propane was up a cent to $.58/gal ($.164/lb). Ethyl-ene began the week higher and then fell sharply, even piercing below $.30/lb, which is where it most recently changed hands - it was a sharp net loss of nearly a nickel. Spot PGP for prompt delivery saw little activity and was offered down about a half-cent, to $.395/lb; however, the forward market was active and prices were marked down significantly. Polyethylene trading was notably lighter than it was during the past several weeks. There was a little lull in producer offerings this week, but not enough to alter market sentiment, which remains slightly negative from this price point. There was previously a good flurry of activity as some processors had run their inventories down and had to restock. Resellers, commenting that Sept sales were disappointing and feeling that the mar-ket has become fully extended to the upside, have sought to sell-off a portion of their uncommitted resin stocks. Houston traders and exporters are also seeking to pare down inventories as offshore sales have been weaker than anticipated, so fairly priced buyer bids are being hit. Although spot buying from international traders has recently been improving, PE exports disappointed in Sept, it was the lowest tally in 20 months. The resur-gence in export demand will be critical in order to maintain a balanced market as PE capacity expands and production increases. We are currently seeing a wide range of Polyethylene prices, which creates good spot opportunities. Domestic prime railcar offers are holding at levels to include last month’s nickel increase, while the discount afforded on offgrade railcars is growing. After 2 months of reduced resin production, upstream PE inventories are relatively light, which has kept the market firm, even at this lofty level. Although some PE producers are still dealing with production constraints, now that the increase has been implemented, and cracker / reactor issues are resolv-ing, spot prices could slip. However, we believe the recent nickel increase will remain intact this month. The Polypropylene market slowed from its active pace and trading volume was only considered about aver-age. PP production was finally reduced in September, largely due to planned and unplanned reactor mainte-nance; we are just now starting to see a lighter flow of railcar material. While overall resin availability remains ample, processors continue to pick away at resellers’ aged inventories, which have been the lowest priced material in the market. As offers are purchased, reseller asking prices are lifted slightly higher; consequently, HoPP gained a half-cent this week; CoPP was up a full penny. While the volume of material available in the spot market could not nearly satisfy contract demand, its rela-tively low price level is indicative of oversupply and weighs on buyers’ sentiment. This in turn affects proces-sors’ inventory ideas and their short / mid-term demand. Spot PP supplies are again thinning and another month of reduced PP production, which appears to be occurring, could help tip the supply/demand balance back towards tight – or at least less loose. This would certainly help producers raise contract (and overall) prices again in Oct to help offset their $.06/lb PGP monomer increase taken in Sept, still squeezing margins this month. 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.

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HDPE Blow Molding

1 Year

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

Resin For Sale 14,825,436 lbs

Resin Total lbs Low High Bid Offer

PP Copo - Inj 3,534,624 0.510$ 0.595$ 0.500$ 0.540$

LDPE - Film 2,170,944 0.600$ 0.720$ 0.640$ 0.680$

PP Homo - Inj 2,063,956 0.485$ 0.540$ 0.480$ 0.520$

HMWPE - Film 1,980,944 0.520$ 0.620$ 0.540$ 0.580$

HDPE - Inj 1,425,196 0.520$ 0.610$ 0.530$ 0.570$

LLDPE - Film 1,303,840 0.570$ 0.630$ 0.540$ 0.580$

HDPE - Blow Mold 966,828 0.540$ 0.590$ 0.525$ 0.565$

LLDPE - Inj 732,736 0.590$ 0.620$ 0.580$ 0.620$

LDPE - Inj 646,368 0.610$ 0.675$ 0.595$ 0.635$

TPE IndexSpot Range

PP Homopolymer

1 Year

10/21/2016

Dairy Market Summary

BLOCK: Down .0200 @ $ 1.6500 1 SalesBARRELS: Down .0050 @ $ 1.5700 2 SalesBUTTER: Up .0050 @ $ 1.7600 0 SalesNFDM Grade A: Unchanged @ $ .8800 9 Sales

Date Blocks Block Change Block Sales Barrels Barrel Change Barrel Sale Spread10/17/2016 1.5850 Up .0350 0 1.4900 Up .0300 4 0.095010/18/2016 1.6800 Up .0950 2 1.6100 Up .1200 5 0.070010/19/2016 1.6800 Unchanged 4 1.5900 Down .0200 1 0.090010/20/2016 1.6700 Down .0100 1 1.5750 Down .0150 0 0.095010/21/2016 1.6500 Down .0200 1 1.5700 Down .0050 2 0.0800

Average Market: 1.6530 8 1.5670 12

Date Butter Butter Change Butter Sales Grd A Grd A Change Grd A Sales10/17/2016 1.7800 Down .0050 3 0.8825 Up .0125 210/18/2016 1.7675 Down .0125 1 0.8725 Down .0100 310/19/2016 1.7550 Down .0125 1 0.8825 Up .0100 110/20/2016 1.7550 Unchanged 0 0.8800 Down .0025 410/21/2016 1.7600 Up .0050 0 0.8800 Unchanged 9

Average Market: 1.7635 5 0.8795 19

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

10/19/2015 1.6450 1.5900 2.5300 0.882510/20/2015 1.6250 1.5800 2.4400 0.860010/21/2015 1.6125 1.6025 2.4200 0.845010/22/2015 1.6125 1.5925 2.4700 0.860010/23/2015 1.6125 1.5500 2.4700 0.8450