BEEF

The market is mixed. Total beef production for last week was down 16.5% versus the prior week and down 9.4% compared to the same week last year. Year to date, total production is down 2.9% compared to the same period last year. The total headcount for last week was 477,000, as compared to 539,000 for the same week last year. Year to date, the total headcount is 12.3 million head, which is down 6.3% from last year. Live weights for last week were down 5 lbs. versus the prior week and are up 29 lbs. from the same week last year. Live cattle prices are trading at a premium and are up about 14% year-over-year. Cattle slaughter during the week of Memorial Day was the lowest volume for the holiday week since 1994. With packers running 4-day work weeks, production has been down about 2% every week for the last three weeks. Recent tariff news keeps the industry in an unsettled situation. Retail and distributive buyers are using a conservative approach before making large future commitments. Beef demand is reported to be moderate for the month of May but is soft compared to recent years. Carcass cutout values continue to inch higher due to limited supply. With the high costs of beef, the spread between choice and select grades is tight. While the overall carcass cutout value is showing strength, some of the key categories are showing weakness in the spot market.

Grinds – The market is steady to firmer. Seasonal demand from the retail and foodservice QSR channels is moderate to good. The supply side is extremely tight and imported trim from Australia and Brazil is needed to fill the void. Trade levels on 73% and 81% grinds are firm, and spot loads are getting a premium.

Loins – The market is steady to firmer. Retail and food service volume has been moderate increasing over the last month. With tight supply, choice product is at a premium. Market levels are steady, but spot business is being tested higher due to tight supply.

Rounds – The market is steady. Volume on XT insides was 39% higher than the 4-week moving average. In addition, grinding operations are using rounds due to lack of trim. Availability varies by packer and producing plant. Market values are holding even.

Chucks – The market is steady. Retail business is moderate to good. Additional demand from grinding operations is giving additional support to the category. Supply varies greatly by packer and sourcing facility. Trade levels are a full steady.

Ribs – The market is weaker. Domestic demand is moderate at best. Higher retail prices and higher food service menu prices appear to have stalled the category. Supply varies by packer and more product is hitting the spot market. Market levels have been pressured lower on a weekly basis over the last month.

PORK

The market is steady to firmer. Total pork production for last week was down 8.7% versus the prior week and down 0.3% compared to the same week last year. The total headcount for last week was 2,163,000 compared to 2,162,000 for the same week last year. Live weights for last week were down 1 lb. compared to the prior week and down 1 lb. versus the same week last year. Summer demand appears to have kicked across the key categories, which is helping to drive cutout values higher. Tariffs continue to have industry participants concerned but limited information is being reported about any actual effects. At the current time, approximately 25% of U.S. production goes to the export channel. Lean hog futures for June showed a hint of weakness, but the month of July surged to its highest level in almost three months. Current futures have bullish overtones and are at the high-end of the 100-day moving average. Trading values on loins, butts, and ribs are holding strong due to improved consumer demand.

Bellies – The market is steady to firmer. Demand from the retail and food service channels is seasonally strong. Trading activity picked up over the last few weeks and supply has tightened. Trade levels are showing some strength.

Hams – The market is steady to firmer. Domestic demand on boneless hams is strong as we trend towards the peak season of the year. Export demand on bone-in hams is reported to be good with Mexico being one the major supporting countries. Supply is available. Market levels have firm undertones.

Loins – The market is steady to firmer. Demand for bone-in loins is vibrant with retail feature activity common across the nation. Boneless loin demand is average at best both domestically and abroad. Supply is available. The market on bone-in product is inching higher while boneless product is static.

Butts – The market is steady to firmer. Domestic demand has been on the rise from early May and appears to be strong with bookings for Father’s Day features. Export demand has picked up with Mexico and the Pacific Rim. Supply has tightened over the last 30 days. Trade levels are being pressured higher.

Ribs – The market is steady. Current demand is moderate and in balance with industry supply. Freezer supplies for the summer grilling season are reported to be adequate. Supply varies by packer and plant. The market on spareribs, St. Louis Ribs, and back ribs is trading within established ranges.

CHICKEN

The market is mixed. The total headcount for the week ending 5/31/2025 was 149,946,000 as compared to 149,224,000 for the same week last year. The average weight for last week was 6.65 lbs. as compared to 6.46 lbs. for the same week last year. Demand for all categories is fair but there appears to be an unsettled tone on a category-by-category basis. After the run up in market conditions to start the year, trading partners have taken a wait and see approach to see what might happen next. Spot trading on boneless breasts is showing weakness. Conversely, spot loads of tenderloins are catching a premium. Trading on wings has seen a recent uptick over the last couple of weeks. Export demand for leg quarters and whole legs has picked up recently which has given support to the back-half of the bird. Slaughter numbers have picked up recently but cannot keep up with the current demand cycle. Hatchability has finally risen above 2024 levels but is still below the 5-year average. Demand is seasonally strong, and the categories are trading within established ranges.

WOGS – The market is steady. Retail deli and QSR business is moderate to good with Father’s Day right around the corner. Supply is tight on premium and cutting stock WOGS. Market levels are static.

Tenders – The market is steady to firmer. Increased demand from the fast-food channel is driving the category. In addition, custom portioning is also on the rise. Supply has tightened up in the last week. The market on select and jumbo sizes has been pressured higher.

Boneless Breast – The market is steady to weaker. Retail and food service demand is adequate, but the market is starting to show some signs of soft undertones. Custom portioning has slowed down and product in combo bins is getting limited demand. Supply is starting to hit the spot market. The market on jumbo and medium boneless has been moving lower.

Leg Quarters and Thighs – The market is steady to firmer. Domestic demand for drums and thighs has picked up in combination with grilling season. Export business on whole legs is a full steady. Supply is tight on drums and boneless thigh meat. Market levels on drums are inching higher while the rest of the category is flat.

Wings – The market is steady to firmer. Demand from the foodservice channel has picked up slightly in recent weeks. Further processors are starting to take advantage of the current market situation. Supply has tightened over the last month. The market was pressured higher on jumbo and medium wings over the last week.

TURKEY

The market is steady. The total headcount for the week ending 5/31/2025 was 3,112,000 as compared to 3,101,000 for the same week last year. The average weight for last week was 33.18 lbs. as compared to 33.19 lbs. for the same week last year. Domestic and export demand is moderate to good and not showing any signs of slowing down. Whole birds, back-half parts, and boneless breasts continue to be highly sought after with limited supply being shown. Due to the respiratory virus reported earlier this year, bird weights are lower than expected and the overall supply is being squeezed. Slaughter data shows the number of turkeys processed year to date is down 10% from last year. With recent news of plant closures, additional supply is not on the horizon anytime soon. Due to limited supply, asking prices are on the rise for boneless breast and back-half parts. Market levels on parts, boneless breasts, and thigh meat continue to have strong undertones.

Whole Birds – The market is steady. Demand is limited with very few spot transactions being reported. Product availability is hard to find. Most suppliers are communicating that they are sold out until further notice. Market levels are static.

Breast Meat – The market is steady. Seasonal demand from the retail deli and QSR channels is starting to kick in. Fresh and frozen supply is scarce on the spot market. Market levels for fresh and frozen product are holding even.

Wings – The market is steady. Export business on whole wings is fair. Domestic volume on two-joint wings is adequate. Supply is tight due to limited slaughter statistics. The market is firm on Tom-sized wings. 

Drums and Thigh Meat – The market is steady. Export demand for drums is moderate to good. Demand for thigh meat is well supported by retail, food service, and further processing. Supply is tight on parts and thigh meat. The market on drums and thigh meat has been moving sideways.

SEAFOOD

White Shrimp – The market is steady to firmer. Demand is moderate and supplies are adequate while maintaining a firm undertone.

Black Tiger Shrimp – The market is firmer. Demand is moderate to good and pricing levels are firmer. Availability is tight on the premium sizes.

Gulf Shrimp – The market is steady to firmer. Supplies are barely adequate to adequate while maintaining a firm undertone.

North American Lobster Tails – The market is firmer. Raw supply remains limited and below market expectations for this stage of the season. With constrained access to new material and low inventory levels, the recent decline in tail prices has stabilized. Some sellers have responded by increasing asking prices amid a firmer market tone.

Salmon – The market is mixed. Farmed salmon is unsettled with pricing influenced by sellers’ supply positions. There are reports of offers above and below the current range. The West coast whole fish market is steady to firmer with higher prices and offers being reported. Europe is reporting a firmer market. Supply is adequate to barely adequate with moderate to active demand. The Chilean whole fish market is weaker. The softer undertone is attributed to competitive pressure from North America and Europe.

Cod – The market is firmer. There is a steady to firm undertone in the market. Demand is moderate, while supplies have tightened.

Flounder – The market is steady and mostly unchanged.

Haddock – The market is firmer. There is a steady to firm undertone in the market. Demand is moderate, while supplies have tightened.

Pollock – The market is firmer. Supplies are adequate with moderate demand.

Tilapia – The market is unsettled to firmer.

Swai – The market is steady to firmer.

DAIRY

CHEESE

The market is mixed. The CME Block market trended weaker as the week progressed. The CME Barrel market was mixed as the week progressed. Both markets trended weaker than the prior week.

Special Note: The USDA has released their final ruling announcing changes to the Federal Milk Marketing Order system. As part of these changes, the Barrel Market was eliminated effective June 1st, 2025. The final rule eliminates barrels from the Dairy Products Mandatory Reporting Program and will rely solely on the 40-pound block cheddar cheese price to determine the monthly average cheese prices.

Cheese production is steady to stronger nationwide. Many cheesemakers note running busy production schedules. In the East, several factors are contributing to increased cheese production. Spring flush has peaked in the region, thus keeping supplies ample for production. Due to decreases in bottling demand, more milk is moving towards cheesemaking. In the Central region, retail demand for cheese has notably strengthened. In the West, Class III spot mil availability is mixed as decreasing milk outputs in the region persist. Cream cheese production is reported to be steady. Cheese inventories are healthy and meeting demand. Demand for retail cheese is strengthening. Food service sales are steady. Domestic demand is reported to be steady to stronger with retail and commercial products seeing an increase, according to the USDA. International demand remains strong. Contacts note export cheese demand is strengthening.

European milk production is decreasing week over week. According to the USDA’s latest report, for 2025, year over year milk production is down in many European Union countries.  European cheese production is lighter. Market tones are reported to be trending upward. Demand for foreign type cheese is steady for both the retail and foodservice sectors. Seasonally higher demand is being reported from Southern European buyers. Some sellers note they are keeping inventory levels close to short-term needs. Demand from international buyers is reported to be stronger.

BUTTER

The market is mixed. The butter market was mixed as the week progressed and trended firmer than the prior week. Cream volumes are ample for butter manufacturers across the nation. As such, production schedules vary from steady to strong depending on the region. In the East, cream production is steady as there is ample milk production. Contacts note that spring flush has peaked. Churns in the region are operating at or near capacity. In the Central region, milk output is steady. Cooler temperatures in some parts of the region are giving way to plenty of cream open for purchase. Butter makers in the region are actively churning and note that spot loads of butter are available. In the West, milk production is decreasing week-over-week in parts of the region. That said, cream volumes in the region are ample for butter makers. Some manufacturers note that contractual load buyers are more active. According to the May NASS Cold Storage report, butter inventories at the end of April were down year-over-year. This report noted that this is the first year over year decline in butter inventories since early 2024. Butter production is mixed between retail and commercial sizes. Retail butter sales have seen recent surges in activity. Food service demand is weaker. Domestic butter demand varies from steady to stronger. Demand from internation buyers is reported to be strong. Export demand is strong.

EGGS

The market has improved. Retail demand is rising as lower shelf prices ease consumer resistance, and planned promotions, ranging from light to aggressive, indicate retailers are capitalizing on favorable wholesale values to drive volume. Food service demand is steady, driven mainly by casual dining in warm, tourist-heavy regions. Distributors are increasing inventories, signaling rising end-user interest.

Market levels are flat on medium and large sizes. National weekly reports show shell egg inventory up 1.3% and breaking stock inventory up 4.0% over last week.

Demand in the egg products category is weaker. The ample supply of shell eggs is exerting downward pressure across all categories. Prices for liquid whole egg and egg whites continue to decline, partly due to further processors breaking eggs and redirecting product into these channels amid limited alternative outlets. The dried market is weaker with reports of sellers showing more flexibility on pricing.

FLUID MILK

The market is strong. Across the nation, milk production is meeting manufacturing demands. Some regions are seeing decreases in milk production but not enough to impact manufacturing. In the Northeast, spring flush has finally peaked. Contacts note spot sales for cream increased over the past week as the spring flush has come to an end. In the Southeast, production is holding steady though contacts anticipate a drop in production in the coming weeks. Class I bottling production is slowing as summer break has begun for the Southeast. Schools in the Northeast are weeks away from the summer season. In the Central region, favorable weather has kept milk component levels steady from week to week. Overall, milk output is reported to be strong in the region. There is continued concern in the Southwest part of the region who note that production is lighter. As schools across the region begin summer break, there is less milk heading to bottling facilities. In California, milk production is decreasing. Stakeholders in the Central Valley note milk outputs are not pushing processing plants to operate at capacity. That said, cream volumes are reported to be sufficient in the region. Handlers in the Pacific Northwest note that some manufacturers convey milk intakes are above anticipated volumes. Milder than anticipated weather conditions have contributed to cow comfort and outputs in the region. Demands for all Classes are steady. Across the nation, Class I bottling production has steadily dropped as educational institutions are in recess for summer break. Class II production has increased seasonally for ice cream and frozen dairy mixes. Much of the milk volumes for bottling have been diverted to Class III production for cheesemakers. Cream volumes are readily available. Cream demand is steady as cream cheese manufacturers and butter makers take advantage of the available volumes. Several contacts note that butter churns are operating at or near capacity across much of the country. Approximately 15% of the milk cow inventory nationally is within an area experiencing drought. According to the USDA’s latest report, condensed skim milk is moving well, and inventories remain steady.

OIL

Soy Oil Soybean oil market is mixed. CBOT soy complex continued to recover after dipping at the start of the week. Good US crop prospects capped the gains. Weather models suggest a developing ridge could bring warm, dry conditions, which may pressure crop yields and tighten inventories. Weekly export sales data showed beans, meal, and oil exports all on the low end of expectations. The market seems undecided on direction with little clarity from the EPA on biofuel mandates, as biodiesel margins remain tight.

Canola Oil – Canola seed market is mixed.  Early gains in the Canola market were offset by lower ending prices.  Tight old crop supplies and production uncertainty for the new crop provided underlying support. Chicago soybeans were also up near weeks end, but soy oil was lower. A stronger tone in the Canadian dollar was also bearish for canola, cutting into crush margins and making exports less attractive for international buyers.  Canola crush margins have deteriorated in recent weeks, which a trader said was a sign the market was likely overpriced at current levels.

Palm Oil - There was no major movement in BMD Crude palm oil with low trade volumes and prices taking cue from externals. The Palm/ Soy spread remains narrow. The market now looks out for the MPOB May Supply and Demand report, which is out next week. Reuters polls show stocks are expected to build with improved production, but higher exports.

COCOA

The cocoa market is unsettled. Rising costs of cocoa are expected to increase the financial burden on chocolate producers and consumers. Supply issues for cocoa have been exacerbated by long lasting structural problems within the industry, as seen in crop diseases and low wages paid to farmers. Price increases on cocoa and any products produced with cocoa should be expected throughout the year.

COFFEE

The coffee market is unsettled. Coffee prices are expected to continue soaring due to adverse weather in both Brazil and Vietnam. Drought and higher temperatures in Brazil during the fruit development and filling period caused Arabica and Robusta yields to fall below initial projections. Price increases on coffee should be expected to continue throughout 2025.

DRIED FRUIT & NUT INDUSTRY

The nut markets have faced several weather-related challenges that have impacted production.

Pecans – According to the University of Georgia and Land IQ, the crop of Pecans in Georgia, home to some of the oldest orchards, suffered the greatest amount of loss from Hurricane Helene last fall. Sources note it will take 8-10 years to recover this crop. Demand for pecans domestically is robust. Demand internationally is showing significant growth.

Cashews – The cashew market has seen several supply chain disruptions due to production declines and logistical costs. Demand for cashews remains strong amongst consumers globally.

Coconut – The coconut market is unsettled. Packaging costs and operational disruptions have contributed to record-level prices. Price increases on coconut and any products produced using coconuts should be expected throughout the year.

GLOVES

The market is unsettled. The disposable glove market is being impacted by many factors, especially raw material costs, which remain the most significant expense category. Nitrile butadiene rubber (NBR) could experience supply constraints due to production capacity limitations. Meanwhile, manufacturing bottlenecks are appearing as production facilities are challenged with labor costs, rising energy costs, implementation of new quality control measures, and technological challenges as manufacturers upgrade equipment.

For natural rubber latex, prices have dropped after the volatility of previous years due to a balanced supply from Southeast Asian producers. NBR prices, however, remain elevated due to continued strong demand and petroleum price fluctuations. The price spread between natural latex and nitrile has narrowed compared with historical averages. Another key variable is energy, representing approximately up to a quarter of production costs, with significant regional variations. Among the cost factors are electricity prices, with manufacturing facilities in Southeast Asia facing 5-7% higher electricity costs compared with 2024.

PROCESSED PEACHES

The European peach crop outlook for the 2025 season is projected 7% lower year over year to 3.2 million metric tons, of which the production of Yellow Cling peach and Pavia varieties (those mostly used for canning) is estimated 12% below year over year to 626,000 metric tons.

Among top key producing canned peach hubs, Greece is observed as the one mostly impacted in terms of volume decreases.  Greek Yellow Cling peach crop shows the largest decrease variation from the previous season, down 19% year over year to 269,000 metric tons of supply.

The Spanish crop projection for the season is down 5% year over year to 301,326 metric tons of Pavia peach output. Hailstorms that occurred in key Spanish peach producing regions during May resulted in damages to the orchards. The damages are not “catastrophic” but are likely to modify current projections.

The Italian crop is projected down by 10% year over year to 51,800 metric tons.

The Spanish, Greek and Chinese peach processing season will resume in the first week of July.

SUGAR

The sugar market is mixed. According to the May World Agricultural Supply and Demand Estimates report, Cane sugar production for 2025/26 is projecting a 3% increase. Cane sugar production for 2025/26 is projected at 4.105 million STRV, a 128,000-STRV increase in production from 2024/25. Projections are based on modest acreage growth in Louisiana and stable acreage in Florida.

Beet sugar production for 2025/26 is projected at 5.180 million short tons, raw value (STRV). Harvested area is based on Prospective Plantings (less California) and a 10-year average of harvested-planted ratios for sugar beet-producing States. Good planting progress extending into early May implies good prospects for sugar beet yields at 31.863 tons/acre at the national level.

Mexico’s sugar projections for 2025/26 are reduced due to production not being back up to pre-drought conditions two growing seasons back.

WHEAT

The wheat market is mixed. Spring planting is 95% complete. Winter wheat harvest is 3% complete and in line with the 5-year average. Winter wheat conditions were good to excellent. Healthy precipitation levels across the northern Plains have given lift to the wheat crops in the northern growing areas. Some concerns exist about ongoing drought conditions in the Central US over the coming weeks. According to the May WASDE report, the outlook for 2025/2026 U.S. wheat is for increased supplies, modestly higher domestic use, reduced exports, and higher stocks. Supplies are projected to be up 2% from 2024/2025 as higher opening stocks offset lower production. Total 2025/26 domestic use is higher on food use. Exports are projected to be lower while the U.S. is expected to face strong competition from most major exporters this year. The global wheat outlook for 2025/26 is for larger supplies, increased consumption and trade, and slightly higher stocks

**Graphs represent data for the week ending May 30, 2025**