Beef: Net US sales of 11,400 MT for 2024 were down 31 percent from the previous week and 41 percent from the prior 4-week average. Increases were primarily for South Korea (3,200 MT, including decreases of 300 MT), Mexico (1,900 MT, including decreases of 100 MT), Japan (1,500 MT, including decreases of 200 MT), Canada (1,100 MT), and Taiwan (1,000 MT, including decreases of 100 MT). Exports of 11,800 MT were down 21 percent from the previous week and 16 percent from the prior 4-week average. The destinations were primarily to South Korea (3,100 MT), Japan (2,600 MT), China (1,800 MT), Mexico (1,200 MT), and Taiwan (600 MT).
Pork: Net US sales of 29,700 MT for 2024 were up 43 percent from the previous week and 15 percent from the prior 4-week average. Increases were primarily for Mexico (14,200 MT, including decreases of 200 MT), Japan (4,300 MT), Colombia (2,400 MT, including decreases of 100 MT), China (2,000 MT, including decreases of 200 MT), and Canada (1,400 MT, including decreases of 700 MT). Total net sales of 100 MT for 2025 were for the Dominican Republic. Exports of 25,700 MT were down 8 percent from the previous week and 10 percent from the prior 4-week average. The destinations were primarily to Mexico (10,700 MT), Japan (3,800 MT), China (3,200 MT), Colombia (1,700 MT), and South Korea (1,600 MT).
Through the first eight months of 2024, China imported 4.40 million metric tons (MMT) of meat products, down 13.9% from the same period in 2023. In August 2024, China imported 565,000 MT of meat, which was 9.9% lower than August 2023. Beef imports have been particularly affected, with volumes down 27% year-over-year in July 2024.
Several factors are contributing to lower Chinese meat imports in 2024:
Bottom line: While there have been some month-to-month fluctuations, overall Chinese meat imports remain well below 2023 levels as domestic production remains high and economic factors dampen demand. This has led to shifts in global meat trade flows, with exporters like the U.S., Brazil and Australia adjusting to changing Chinese import patterns.
Highlights of US pork group virtual briefing on key challenges
Bottom line issues for National Pork Producers Council:
Brian Humphreys, CEO of the National Pork Producers Council, said: We're here to find solutions, not just discuss challenges. We need a 2024 Farm Bill -- not an extension. We need a legislative fix to California's Prop 12, resolutions to the labor shortage, and an active trade agenda. NPPC says moving a new farm bill this year with language restricting state animal welfare rules is the group's top priority.
A Missouri resident has been confirmed as the first case of the H5N1 virus with no known exposure to sick animals, according to the CDC. The individual, who was hospitalized and has since recovered, had no work-related contact with animals. The infection was identified through routine flu surveillance, rather than the targeted H5N1 program typically used for farm workers. This marks a shift in how the virus is being monitored and may indicate new patterns of transmission.
The UN Food and Agriculture Organization global food price index slipped 0.5% in August, the second straight small monthly decline, as decreases in sugar, meat and cereal grains outweighed increases for vegoils and dairy products. The August index was down 1.1% from last year. Compared to year-ago, prices declined 12.0% for cereal grains and 23.1% for sugar, while they rose 3.6% for meats, 14.3% for dairy and 8.1% for vegoils.
CME GROUP CASH MARKETS (9/06) BUTTER: Grade AA closed at $3.1750. The weekly average for Grade AA is $3.1594 (-0.0226). CHEESE: Barrels closed at $2.2750 and 40# blocks at $2.2700. The weekly average for barrels is $2.2588 (+0.0473) and blocks $2.2363 (+0.1083). NONFAT DRY MILK: Grade A closed at $1.3650. The weekly average for Grade A is $1.3550 (+0.0435). DRY WHEY: Extra grade dry whey closed at $0.5875. The weekly average for dry whey is $0.5725 (+0.0120).
BUTTER HIGHLIGHTS: In the West, butter demand varies from steady to stronger for the retail and food service sectors. In the Central region, butter demand is stronger for both as well with seasonal strength gathering. For the East, retail demand is stronger, and food service demand is steady. Cream supplies are looser with the holiday weekend contributing to market availability of loads. However, not enough to make cream volumes abundantly available throughout the country. Stakeholders convey cream availability remains relatively tight in the East. Butter production paces mostly vary from steady to stronger. Bulk butter overages range from minus 7 to 10 cents above market, across all regions.
CHEESE HIGHLIGHTS: Contacts relay cheese production schedules vary from steady to lighter throughout the U.S. In the East, milk availability for Class III processors is tempered by strong Class I bottling demand. Labor Day weekend freed up some spot milk temporarily, but contacts continue to share seasonally steady to lighter cheese manufacturing activity. In the Central region, contacts report spot milk prices ranging from $1/cwt to $2.50/cwt over Class III. That said, some cheesemakers relay getting no spot milk offers, and cheese production remains seasonally lighter. Some processors share they are shifting production focus away from blocks and back into barrels. Contacts in the West are running steady cheese production schedules despite tight spot milk availability. Some manufacturers share there are limited cheese inventories available for interested spot purchasers.
FLUID MILK: The unceasing milk production carried on across the country despite the holiday weekend. Farm level milk production proceeds to weaken over much of the East and Midwest. Processors there are feeling the pinch in production. Reported spot milk prices in the Midwest ranged from $1-over to $2.50 over Class III. Cooler temperatures are being seen over some parts of both regions, and farmers are anticipating the effects in the coming weeks. Arizona and the Pacific Northwest are also experiencing a dip in milk levels. Most of the mountain states have generally steady production. Increased levels of milk are being seen in California and New Mexico. Nationwide, school schedules have pushed Class I demand for bottling to its peak. Class II and III production is mixed as Class I draws on available milk supplies. Demands for cream and condensed skim are steady to strong. Spot loads of condensed skim are a rarity in most of the country. Cream supplies remain tight, but a small gain in cream availability was seen over the holiday weekend. It is not expected to last long, but Class IV manufacturers are making the most of it. Cream multiples range from 1.15 - 1.50 in the East, 1.16 - 1.34 in the Midwest, and 1.10 - 1.30 in the West.
DRY PRODUCTS: Low/medium heat nonfat dry milk (NDM) prices moved up at every facet in all regions this week. Clearly, markets have found some bullish tailwinds with stronger demand and tightening supplies. Dry buttermilk prices were steady in the Central/East regions, while moving higher in the West. Dry buttermilk Q4 demand has begun to stir potential market bulls. Central and West whey prices were steady to higher, while East whey prices held steady. Whey supplies are noted as very tight according to a number of processors. Lactose prices were steady to slightly lower, as international demand has been less consistent recently. Whey protein concentrate (WPC) 34% prices edged higher at every point this week on renewed interest from end users, particularly those who can alternate between WPC 34% and NDM. Dry whole milk prices were higher this week, as interest remains steady, but inventories are, and have been, noticeably tight. Rennet and acid casein prices were steady on quiet trading activity.
ORGANIC DAIRY MARKET NEWS: The first publication of the Pennsylvania Monthly Organic Dairy Report was released on September 6, 2024. The Vermont Monthly Organic Dairy Report covering June 2024 showed the weighted average price for fluid milk decreased from May, while the total volume and average daily production per cow also decreased. The USDA AMS National Organic Program (NOP) Organic Insider sent out on August 30th discussed an upcoming meeting of the National Organic Standards Board (NOSB) in Portland, Oregon in October 2024. Monthly export volumes for organic milk during July 2024 were up from the month prior, and up from July 2023. Total organic dairy ads increased in the week 36 retail ad survey. Every organic commodity present in last week's survey, except sour cream, appeared in more ads this week. This week's most advertised organic dairy product was milk. Organic cottage cheese, cream cheese, and ice cream appeared in this week's retail ad survey after not being present last week.
US RETAIL REPORT: Conventional dairy advertisement totals slid 11 percent lower, while organic retail dairy ad totals increased 42 percent during week 36. Conventional ice cream, in 48-to-64-ounce containers, for the second consecutive week was not the most advertised dairy item, as that item's ad totals decreased 43 percent from last week. Conventional sliced cheese in six-to-eight-ounce packages was the most advertised item this week, while half-gallon milk returned to its normal top spot among organic dairy items, after a 65 percent increase from last week's ad totals.