Weekly USDA beef, pork export sales

Beef: Net US sales of 8,300 MT for 2024--a marketing-year low--were down 46 percent from the previous week and 43 percent from the prior 4-week average. Increases were primarily for South Korea (2,500 MT, including decreases of 400 MT), China (1,900 MT, including decreases of 100 MT), Japan (1,400 MT, including decreases of 400 MT), Canada (800 MT, including decreases of 100 MT), and Taiwan (400 MT, including decreases of 200 MT). Exports of 14,300 MT were down 11 percent from the previous week and 13 percent from the prior 4-week average. The destinations were primarily to Japan (3,800 MT), South Korea (2,600 MT), China (2,000 MT), Mexico (1,800 MT), and Taiwan (1,800 MT).

Pork: Net US sales of 26,500 MT for 2024 were down 55 percent from the previous week and 29 percent from the prior 4-week average. Increases were primarily for Mexico (9,000 MT, including decreases of 200 MT), Japan (6,400 MT, including decreases of 100 MT), China (3,400 MT, including decreases of 100 MT), Colombia (1,700 MT, including decreases of 100 MT), and South Korea (1,700 MT, including decreases of 100 MT). Exports of 32,400 MT were up 8 percent from the previous week and from the prior 4-week average. The destinations were primarily to Mexico (14,100 MT), China (4,300 MT), Japan (3,400 MT), South Korea (2,500 MT), and Canada (2,200 MT).

US wholesale beef market weakens

Wholesale beef prices declined for a second straight day on Wednesday, as Choice fell $1.61 to $324.05 and Select dropped 37 cents to $303.94. However, the price drop the past two days has triggered a combined load count of 286, signaling there’s still strong retailer demand under the market. Seasonally, beef prices weaken during summer, though there are indications retailers plan to keep actively featuring beef.

Tyson Foods announces sale of its poultry complex in Vienna, Georgia

Tyson sold to House of Raeford Farms, a family-owned chicken products manufacturer. This move is part of Tyson's ongoing efforts to streamline operations and improve profitability in its meat and poultry business. House of Raeford Farms stated that poultry processing will continue at the facility, utilizing the existing workforce. This decision should help maintain employment in the area. House of Raeford Farms is one of the 10 largest chicken producers in the United States. The company operates poultry grow-out operations and processing facilities in four southeastern states. It is known for its commitment to ethical and environmentally responsible practices. 

Singapore approves 16 insect species, including crickets, silkworms, and the western honey bee, as safe for human consumption

The goal is to promote an alternative, eco-friendly protein source. Insects are already commonly eaten in parts of Asia, Africa, and Mexico. While the European Commission and Australia have approved a few insect species, the U.S. has not officially recognized insects as food. Singapore, a pioneer in alternative proteins, was the first country to approve lab-grown meat in 2020.

Study: H5N1 not easily spread via air

The H5N1 virus infecting U.S. dairy cows is not easily transmitted through the air among ferrets, which are the best small mammal for studying influenza virus infection and transmission, a study by researchers at the University of Wisconsin-Madison showed. The study also confirmed the virus, isolated from the milk of an infected cow in New Mexico, made both mice and ferrets sick after exposure to the unpasteurized milk. A virus that can spread easily through the air between humans would pose a greater pandemic threat than H5N1 currently does.

US beef, pork exports slow during May

The US exported 258.9 million lbs. of beef during May, down 589,000 lbs. (0.2%) from April and 7.8 million lbs. (2.9%) less than last year. Pork exports totaled 584.7 million lbs., down 71.2 million lbs. (10.9%) from April and 35.0 million lbs. (5.7%) less than last year. According to the U.S. Meat Export Federation, the value of beef exports totaled $902.4 million in May, the highest since June 2023, while the value of May pork exports at $715.8 million fell 2%. Through the first five months of the year, beef exports totaled 1.251 billion lbs., down 64.5 million lbs. (4.9%) from the same period last year. Pork shipments through May reached 3.043 billion lbs., up 171.0 million lbs. (6.0%) versus the first five months of 2023.

China’s sow herd declines, slaughter builds

China’s sow herd totaled 39.96 million head at the end of May, according to the ag ministry, down 6.2% from last year. Hog slaughter during the first five months of the year rose 0.8% to 136.04 million head.

USDA monthly US dairy report highlights

May 2024 Highlights Total cheese output (excluding cottage cheese) was 1.21 billion pounds, 0.7 percent above May 2023 and 2.1 percent above April 2024. Italian type cheese production totaled 505 million pounds, 4.4 percent above May 2023 and slightly above April 2024. American type cheese production totaled 488 million pounds, 5.7 percent below May 2023 but 4.5 percent above April 2024. Butter production was 204 million pounds, 4.0 percent above May 2023 but 1.6 percent below April 2024. Dry milk products (comparisons in percentage with May 2023) Nonfat dry milk, human - 171 million pounds, down 17.2 percent. Skim milk powder - 41.9 million pounds, down 10.1 percent. Whey products (comparisons in percentage with May 2023) Dry whey, total - 76.6 million pounds, down 6.3 percent. Lactose, human and animal - 93.0 million pounds, down 2.7 percent. Whey protein concentrate, total - 42.5 million pounds, down 3.2 percent. Frozen products (comparisons in percentage with May 2023) Ice cream, regular (hard) - 65.0 million gallons, up 2.3 percent. Ice cream, lowfat (total) - 40.3 million gallons, down 6.1 percent. Sherbet (hard) - 1.73 million gallons, down 10.6 percent. Frozen yogurt (total) - 4.32 million gallons, up 0.1 percent.

Weekly USDA dairy report

CME GROUP CASH MARKETS (7/5) BUTTER: Grade AA closed at $3.1325. The weekly average for Grade AA is $3.1356 (+0.0516). CHEESE: Barrels closed at $1.9025 and 40# blocks at $1.9000. The weekly average for barrels is $1.8844 (-0.0126) and blocks $1.9000 (+0.0075). NONFAT DRY MILK: Grade A closed at $1.1800. The weekly average for Grade A is $1.1775 (-0.0080). DRY WHEY: Extra grade dry whey closed at $0.4925. The weekly average for dry whey is $0.4906 (+0.0076).

BUTTER HIGHLIGHTS: Domestic butter demand is mixed. In the East, demand is slightly weaker. In the Central, demand is ahead of some stakeholder expectations. In the West, retail demand varies from steady to lighter, and food service demand is lighter. Cream availability is generally tightening across the country recently. However, the mid-week holiday is anticipated to give some temporarily looser cream availability for the week. Amongst butter manufacturers, both steady and lighter churning paces are reported. In some cases, churn maintenance projects are currently taking place or scheduled to take place soon. Bulk butter overages range from minus 4 to 10 cents above market, across all regions.

CHEESE HIGHLIGHTS: Cheese production schedules are seasonally steady throughout the U.S. Contacts in the East share tightening farm level milk outputs have limited the amount of milk available for Class III processing. The Independence Day holiday freed up some milk supplies, though, and cheese production schedules are in line with recent weeks. Cheesemakers in the Central region relay steady five[1]day production schedules. Cheese demand ranges from steady to stronger in the region. Contacts in the West share steady cheese production schedules. Cheese demand is in line with cheese availability at the moment. Contacts note current domestic cheese price points are not competitive with international prices, and export demand is trending steady to lighter.

FLUID MILK: Milk production is seasonally declining week to week. The West region and Midwest region have had more pronounced decreases in milk output. The East region is seeing lighter milk output with small pockets of steady production. Cream spot load availability is steady across the East and West regions but has continued to slide in the Midwest, similar to milk. The southern half of the U.S. and the West region are experiencing the heat of the summer, while the upper Midwest and East are wading through wetter conditions affecting production and availability. Ice cream production is active. Demand for cream and condensed skim milk is steady in the East and Midwest. The West is seeing a bit more demand for spot loads of cream and condensed skim milk. Cream multiples for all Classes are 1.24 – 1.41 in the East, 1.15 – 1.35 in the Midwest, and 1.08 – 1.32 in the West.

DRY PRODUCTS: Low/medium heat nonfat dry milk (NDM) prices were mixed in all regions. NDM demand from Mexican importers has yet to gather steam, but availability is not abundant. Dry buttermilk prices were steady to higher. Manufacturers of dry buttermilk in the West relayed limited spot market availability, while demand notes are mixed. Dry whole milk prices held steady on quiet trading and limited production/supplies. Dry whey prices were mixed in the Central region, but edged higher in both the East and West. Dry whey processing is expected to become lighter as milk access is expected to continue to decrease. Whey protein concentrate (WPC) 34% prices were steady to lower. Processors and traders report quiet domestic demand for spot loads of WPC 34%. Lactose prices were mixed. Lactose processing schedules are steady, while inventories vary from one plant to the next. Acid and rennet casein prices were unchanged, as spot loads of rennet are available while acid casein loads are tighter.

INTERNATIONAL DAIRY MARKET NEWS

WEST EUROPE: Milk deliveries in the EU-27 in April were up compared to last year and daily milk production volumes increased from January to April. Milk prices in the EU rose slightly in some areas and decreased slightly in others from March to April. Milk components were lower in April 2024 than in April 2023. Early data indicates decreases in milk deliveries in the Netherlands in May. Peak spring flush volumes were seen in April this year. Organic milk production in the UK declined in May from the same month a year ago. EAST EUROPE: In several of the Commonwealth of Independent States (CIS) member nations, year over year increases in milk production from January to April slowed. However, significant growth was seen in Belarus, which reported an increase in milk production in the first four months of the year versus the same period last year. OCEANIA: AUSTRALIA: According to Dairy Australia, May 2024 milk production, was up from May 2023. Milk production was higher in May 2024 compared to a year earlier in every state. The largest increase from May of 2023 occurred in Victoria. Milk production from the start of the season in July 2023 through May 2024 increased compared to the same time frame a year earlier. From the start of the season in July 2023 through May 2024 the cumulative volume of milk produced was higher in every state compared to the prior season. NEW ZEALAND: Export data for May 2024 was recently released for New Zealand. This data showed an increase in value for milk powder, butter, and cheese exported in May 2024 compared to April 2023. Fresh milk and cream export values were higher in May 2024, when compared to a year earlier. A recent survey from DairyNZ found prices for dairy farmers during the 2022-2023 season were the most expensive in New Zealand in a decade. SOUTH AMERICA: Farmers in some areas of the South American continent are reportedly, and happily, gaining some steam on milk production. As has been mentioned in multiple recent reports, climactic challenges, putting it lightly, have burdened countries throughout South America. Fall was warmer than expected, with heavy rain/flooding in a number of key dairy producing areas. The winter months are expected to bring on more neutral weather patterns, but there are wide variances in the amount of milk available from one country to the next, and from one area to the next within the same country in many cases.

US NATIONAL RETAIL REPORT: Independence Day week brought a decrease in both conventional and organic dairy advertisement totals by five and 74 percent, respectively. Conventional ice cream in 48-to-64- ounce containers was the most advertised single item this week, while half -gallon milk ads led all other items in the organic sector. As a commodity, conventional milk ad totals increased 25 percent, while organic milk ad totals slipped 80 percent week over week. The weighted average advertised price of conventional milk, in half-gallon containers, was $2.39, while organic half-gallon milk's price was $4.67, resulting in an organic premium of $2.28.