Weekly protein digest: USDA expands border defense against New World Screwworm

14 February 2026

11 minute read

By: Jim Wyckoff

North America

Cattle futures markets show needed price strength

April live cattle on Wednesday rose $3.55 to $240.975. March feeder cattle gained $2.675 to $367.45. The bulls needed to show strength after fading a bit, and they did just that Wednesday, to regain some momentum. Some improved trader/investor risk appetite in the general marketplace this week has worked in favor of the cattle market bulls. Wednesday’s much-stronger-than-expected US jobs report suggests consumer confidence will remain high—meaning still-solid demand for beef at the meat counter. USDA again Wednesday reported no active cash cattle trading as of midday Wednesday. Cash trading last week averaged $241.31, up $1.87 from prior week’s average cash cattle trade at $239.44.'

US-China trade truce may be extended by as much as one year: report

The soybean futures markets rallied overnight, with March beans hitting a nine-week high, after a report on a potential extended trade truce between the US and China fueled hopes for additional purchases of American agricultural products, including soybeans. President Trump and Chinese leader Xi Jinping could extend their trade truce by as much as a year when they meet in Beijing in April, the South China Morning Post reported Thursday and as reported by Bloomberg, citing several unidentified people familiar with the discussions. The summit is set to be anchored around short-term economic wins, including fresh Chinese purchase commitments, the Morning Post report said. Last week, Trump said in a social media post that China was considering extending its soybean purchases to 20 million tons in the current season.

Trump mulls quitting USMCA trade deal as US House votes to end duties on Canada imports

President Trump is privately considering exiting the North American trade pact, Bloomberg reported, citing people familiar with the matter, injecting further uncertainty about the deal’s future into pivotal renegotiations involving the US, Canada and Mexico. The US-Mexico-Canada Agreement is set for a mandatory review before a possible extension on July 1, “a process that was once expected to be routine but has transformed into a contentious negotiation, with Trump demanding additional trade concessions from Ottawa and Mexico City,” said Bloomberg. Meantime, the Republican-led US House has passed legislation aimed at ending the Trump’s levies on Canadian imports. “Wednesday’s vote represents an increase in political pressure to change course on Trump’s signature economic policy just months before the midterm elections,” said Bloomberg. “The vote also signals a growing anxiety over the White House’s economic agenda before elections that are expected to focus heavily on affordability.” The US Senate will now take up the measure.

China eases duties on some EU dairy products

China has set final import tariffs on some dairy products from the European Union at as much as 11.7% following an anti-subsidy investigation, Bloomberg reported. The duties apply to goods including fresh and processed cheese and will take effect beginning Friday, according to China's Ministry of Commerce. European cheese and cream exports to China "face a very competitive market with other exporting countries," particularly those that benefit from free-trade agreements, said Alexander Anton, secretary general at trade group Euromilk. There have been efforts to deepen economic cooperation between China and the EU following a leaders summit in July, including a recent visit by French President Emmanuel Macron to China. Earlier this week, the EU moved to exempt one of Volkswagen AG’s China-built electric vehicles from hefty import duties, the first car to get approval under a new mechanism aimed at thawing tensions.

USDA announces completion of sterile fly dispersal facility in Texas

USDA Secretary Brooke Rollins and Texas Governor Greg Abbott on Monday afternoon announced the completion of a US-based sterile fly dispersal facility in Edinburg, Texas, to continue to prevent the spread of New World Screwworm into the United States. “This facility expands USDA’s ability to disperse sterile flies along the border and into the United States, if necessary,” said a USDA press release. Rollins said USDA is “diligently working to stop the spread of screwworm in Mexico, conduct extensive trapping and surveillance along the border, increase US response capacity, and encourage innovative solutions,” Rollins said in the press release. In June of 2025, USDA announced a plan to enhance the agency’s ability to detect, control, and eliminate NWS.

JBS buys 80% stake in Oman meat plants

JBS NV, the world’s largest meat producer, agreed to buy a controlling stake in an Oman food business through a deal with wealth fund Oman Investment Authority, according to a Bloomberg report. “The Sao Paulo-based meatpacker is investing $150 million to obtain an 80% stake of the business, which includes a poultry plant and a unit that processes beef and lamb. The Oman wealth fund will retain the remaining 20% stake. The deal will allow JBS to produce fresh meat locally, sourcing breeder chickens from local suppliers in Oman. The lamb and beef meat unit will receive animals from other countries in Africa and the Middle East,” said the report. The deal marks JBS’ newest effort in the halal market involving food that adheres to Islamic law. JBS already processes chicken in Saudi Arabia and recently announced the expansion of its unit in Jeddah.

USMEF presses for China beef market reopening

Industry leaders tell producers access is critical to carcass value, export demand, and consumer affordability

At the 2026 Cattle Industry Convention in Nashville (CattleCon), leaders from the US Meat Export Federation (USMEF) delivered a candid update on efforts to regain US beef access to China, underscoring the market’s strategic importance even amid tight cattle supplies.

Erin Borror, USMEF vice president for economic analysis, told producers there has been no breakthrough yet in reopening China, describing the situation as a “complicated market closure.” Still, she emphasized the necessity of restoring access — particularly at this stage of the cattle cycle — to maintain export channels that add value across the entire carcass.

Borror stressed that exports are not just about volume but about maximizing carcass value. Even with relatively low US supplies, she said, the industry must have access to key international markets like China to sustain pricing power and profitability.

She also noted that USMEF has been working in Washington to reinforce the message that export access benefits both producers and American consumers by supporting affordability and optimizing product utilization

Jay Theiler, USMEF chair and a representative of Agri-Beef, said he recently met with officials from USDA and the Office of the US Trade Representative. According to Theiler, trade officials recognize the importance of China not only as a standalone buyer but as a competitive bidder that strengthens overall carcass value and supports pricing in other Asian markets. While acknowledging that the market may not reopen immediately, Theiler said USTR officials remain actively engaged in negotiations and understand the challenges facing the beef sector.

The takeaway for producers: China access remains a top priority. Even in a constrained cattle supply environment, export demand — particularly from a major market like China — plays a critical role in sustaining industry value and long-term competitiveness.

US, Argentina finalize trade deal; more Argentine beef coming to US

Argentina and the US agreed to scrap hundreds of tariffs on each other’s goods in a trade and investment deal inked Thursday, a major step in President Javier Milei’s push to open up the historically protectionist South American economy, said a Bloomberg report. The US agreed to eliminate over 1,600 reciprocal tariffs on Argentine goods while Milei’s government will terminate more than 220 levies on US products, Argentina’s foreign ministry said in a statement. Argentina will be able to export 100,000 tons of beef to the US with preferential access as part of the agreement, up from the current quota of 20,000 tons, according to the foreign ministry’s statement. The quota increase amounts to an extra $800 million, officials estimated. “That detail could revive tensions between Trump and some Republican lawmakers, who sought to protect US ranchers from more competition from Argentine beef last year. Argentina will also increase its imports of American beef, cars and agricultural products,” said Bloomberg.

China’s largest hog breeder has successful stock listing in Hong Kong

Muyuan Foods Co. plans to partner with Asian hog farmers and enhance its global feed-grain supply network after raising HK$10.7 billion ($1.4 billion) in Hong Kong’s biggest listing of the year so far, Bloomberg reported. China’s largest hog breeder is looking to expand in Southeast Asia over the next three to five years, its chief financial officer said, in a move that will bolster regional biosecurity and help the company to diversify beyond an oversupplied domestic market. Muyuan also aims to build procurement teams in major grain- and oilseed-exporting nations like Brazil to ensure a steady supply of feed ingredients, Gao Tong told Bloomberg in an interview. “We hope to improve our globalized supply chain through this Hong Kong listing,” he said. “The proceeds will enable the company to expand overseas at a time when China – the world’s largest pork producer – is suffering from excess supply and declining prices at home. Farmers have also faced increased volatility in the global supply chain, with soybeans – a key ingredient in pig feed – becoming a flashpoint in trade tensions between Beijing and Washington,” said Bloomberg.

Weekly USDA dairy report

CME GROUP CASH MARKETS (2/6) BUTTER: Grade AA closed at $1.7100. The weekly average for Grade AA is $1.6375 (+0.0805). CHEESE: Barrels closed at $1.4400 and 40# blocks at $1.4725. The weekly average for barrels is $1.4240 (-0.0040) and blocks $1.4315 (+0.0375). NONFAT DRY MILK: Grade A closed at $1.6400. The weekly average for Grade A is $1.5475 (+0.1580). DRY WHEY: Extra grade dry whey closed at $0.7300. The weekly average for dry whey is $0.7260 (-0.0190). 

BUTTER HIGHLIGHTS: In the East region, domestic butter demand is strong. In the Central and West regions, domestic butter demand varies from lighter to steady. 80 percent butterfat butter loads are readily available. Export demand is generally strong and 82 percent butterfat butter spot load availability is tight. Cream volumes and spot load offers are steady for buyers. Cream demand from butter manufacturers is mixed. Butter production schedules are running at or close to capacity for the most part. Some facilities that began production last year are working to boost milk and cream intakes to reach plant capacity. Bulk butter overages range from 2 cents below to 10 cents above market across all regions. 

CHEESE HIGHLIGHTS: Class III milk availability remains adequate for production. Cheese markets remain steady, driven by strong retail demand and stable wholesale bulk activity. In the Central region spot milk volumes are available, and demand for Class I and Class III milk is strengthening. Last week's winter storm disrupted transportation and manufacturing across much of the US, but processors in the Central region report operations have resumed. Cheesemakers are running busy schedules, supported by internal milk supplies. Contractual milk volumes in the West region continue to flow to cheesemakers. Class III spot milk availability is tight in the Northwest; demand from processors is stronger. Cheese production varies from steady to stronger. Domestic retail and foodservice demand is mixed; export demand ranges from steady to stronger. 

FLUID MILK HIGHLIGHTS: Farm milk output is steady to stronger nationwide, with only the Western region seeing an increase in milk volumes. Many manufacturers are resuming normal operations after a winter storm disrupted operations for much of last week. Bottlers are running busy schedules to restock retailers after the storm. Class II production is somewhat light this week, with only a few reported spot sales of cream. Class III production is steady to strong. Cheese manufacturers continue to run busy production schedules due to strong retail demand and increasing growth in bulk demand. Class IV production is strong nationwide. Butter churns are operating at or near capacity and continue to take spot loads of cream and milk. Milk powders continue to be in high demand, so producers are keeping dryers running to take advantage of high spot market prices. Condensed skim demand is unseasonably strong. Condensed skim is selling to Class III facilities for $0.15 over Class price. Cream multiples for all Classes range:1.06– 1.35 in the East; 0.95– 1.18 in the Midwest; 0.85 – 1.16 in the West. 

DRY PRODUCTS HIGHLIGHTS: Nonfat dry milk (NDM) prices strengthened across all regions, with the largest gains in the Central region. CME Grade A NDM reached $1.60 Thursday, the highest since August 2022. Dry buttermilk prices were mostly higher, except the steady low end of the range in the Central and East region. Spot activity is active, while tighter availability was noted in the West. Dry whey markets were mixed, with declines in mostly ranges for the Central and West regions, but steady prices in the Northeast. Lactose prices held steady and remain well above year-over-year levels amid strong demand. The whey protein concentrate 34% prices were mixed, with an increase at the low end and decrease at the high end, while the mostly series held firm. Dry whole milk prices continued to strengthen, supported by strong gains in butter and NDM. Acid and rennet casein prices rose sharply, led by strong increases at the top end of the rennet range. 

ORGANIC DAIRY MARKET NEWS: The Pennsylvania Monthly Organic Dairy Report covering November 2025 showed that the weighted average price for fluid milk increased in October, while the Vermont Monthly Organic Dairy Report showed a decrease in the weighted average price for fluid milk. The USDA’s ERS is releasing a report titled America's Farms and Ranches at a Glance: 2025 Edition on February 10, 2026, which includes a new, on-time section on organic acreage by ownership type, region, and farm specialization. Federal Milk Market Order 1 reported utilization of organic milk by regulated plants in December 2025 was up for both whole milk and organic reduced fat milk from a year prior. November 2025 export data released by FAS covering volumes of organic milk categorized as HS-10 code 0401201000 showed a decrease in the volume exported compared to the prior month and from a year earlier, while exports from the start of 2025 through November were up from the same time period a year ago.