Weekly protein report: New World Screwworm cases on the rise in the US

27 June 2026

19 minute read

By: Jim Wyckoff

North America

Asia

Oceania

Cattle futures bulls in firm control

August live cattle on Wednesday rose $0.525 to $246.525. August feeder cattle gained $4.775 to $372.925 and hit a six-week high. The cattle futures markets saw technical buying and also support from ongoing concerns about reduced beef supplies coming out of Texas due to the NWS detections in the state. The USDA Animal and Plant Health and Inspection Service (APHIS) on its NWS website is now reporting 20 total New World screwworm detected cases. The cattle bulls were also somewhat assuaged by Wednesday’s rebound in the US stock market, after solid losses Tuesday. USDA at midday Wednesday reported light cash cattle trading so far this week, averaging $260.00. Last week’s cash cattle average trading price was $259.63, up $3.55 from the week prior.

New World screwworm (NWS) cases detected in US rise to 20

The USDA Animal and Plant Health and Inspection Service (APHIS) on its NWS website is now reporting 20 total New World screwworm detected cases in the US and all still in Texas and New Mexico, with the newest one in Texas. There are 17 active cases, all in Texas. Four cases of NWS have been confirmed on the same Texas property, marking the largest cluster of detections to be reported since the parasite was found in the US earlier this month, reports said. “Three cattle and one goat were detected to have screwworm in Terrell County, which is adjacent to Mexico, according to USDA. All were from a single premises, the Texas Animal Health Commission said in a Wednesday email. Another bovine case surfaced late Wednesday in Medina County, according to USDA,” said a Bloomberg report.

Trump to host US farmers at White House dinner

The White House said President Donald Trump on Thursday will host a White House Rose Garden dinner honoring farmers, ranchers, cattlemen and growers from across the country. The dinner is on the first night of the Great American State Fair. Cabinet members slated to attend include USDA Secretary Brooke Rollins, Health and Human Services Secretary Robert F. Kennedy Jr., Treasury Secretary Scott Bessent and Administrator of the US Centers for Medicare and Medicaid Services Mehmet Oz, reports said, citing a White House official. Sens. John Boozman, R-Ark., Roger Marshall, R-Kan., and Joni Ernst, R-Iowa, will also be in attendance.

California pork Prop. 12 fight moves to the Senate front burner

Farm bill draft leaves out pork industry priority, setting up a major political and policy battle ahead

The release of Senate Ag Committee Chairman John Boozman's (R-Ark.) farm bill discussion draft without a Proposition 12 fix marks a significant setback for the pork industry's top legislative priority, but it is far from the end of the fight. Instead, it signals that one of the most contentious agricultural issues in Washington remains unresolved and is likely headed for an intense battle as the Senate moves toward formal farm bill consideration.

The competing statements issued Tuesday underscore just how sharply divided agriculture, animal welfare advocates, and lawmakers remain over California's Proposition 12, the voter-approved law that establishes housing standards for breeding pigs whose pork is sold in California regardless of where the animals are raised. Since the Supreme Court upheld the law in 2023, the debate has shifted from the courts to Congress, where the industry has sought federal legislation to pre-empt state production standards that affect interstate commerce.

For the National Pork Producers Council (NPPC), the omission of a Prop. 12 fix from the discussion draft is disappointing because the organization views the issue as an existential threat to a national livestock marketplace. The group argues that California's law creates a precedent allowing individual states to impose production standards beyond their borders, potentially leading to a patchwork of conflicting regulations for pork, poultry, eggs, cattle and other agricultural products. NPPC's decision to assemble a coalition of more than 330 agricultural organizations demonstrates the breadth of concern among many commodity groups about the interstate commerce implications rather than solely the specifics of pig housing requirements.

The pork industry's campaign received a significant legislative boost earlier this year when the House included a Proposition 12 fix in its version of the farm bill, demonstrating that a majority of lawmakers in one chamber were willing to support federal limits on state livestock production mandates. Supporters point to that vote as evidence that a bipartisan coalition exists for federal action. They also argue that compliance costs disproportionately affect smaller and mid-sized producers who lack the capital necessary to retrofit facilities or segregate supply chains for different markets. Industry economists have long contended that the law raises production costs and ultimately food prices, although the magnitude of those impacts remains debated.

Yet the political landscape in the Senate appears considerably more challenging. Senate Minority Leader Chuck Schumer (D-N.Y.) is publicly opposing the Save Our Bacon Act and that highlights the uphill climb facing supporters. Schumer's statement reflects the arguments advanced by animal welfare organizations and many progressive lawmakers who view federal pre-emption as an attack on states' rights and voter-approved standards. Their position is that states have long exercised authority over food safety, consumer protection and animal welfare, and that Proposition 12 simply reflects California consumers' preferences regarding how animals are raised.

The political irony is that both sides are framing the debate around states' rights. Pork producers argue that California is effectively dictating production practices to farmers in Iowa, North Carolina and other states. Opponents argue that federal legislation overturning Proposition 12 would prevent states from establishing standards desired by their own voters. That competing interpretation of federalism has complicated efforts to build a durable Senate coalition.

Another factor working against immediate action is the broader farm bill coalition itself. Farm bills traditionally succeed because lawmakers avoid including provisions that threaten support from key constituencies. Proposition 12 has become one of those divisive issues that risks alienating lawmakers whose votes are needed for final passage. Chairman Boozman's decision to leave the language out of the discussion draft may reflect a strategic calculation that it is easier to add controversial language later than to remove it after opposition hardens.

The absence of a fix from the draft should not be interpreted as Senate rejection of the industry's position. Rather, it suggests leadership is attempting to advance the broader farm bill while keeping options open during negotiations. Senators including Joni Ernst (R-Iowa), Chuck Grassley (R-Iowa), Kevin Cramer (R-N.D.), Ted Budd (R-N.C.), Pete Ricketts (R-Neb.), Thom Tillis (R-N.C.), John Cornyn (R-Texas), and Mike Rounds (R-S.D.) are expected to continue pressing for inclusion as the legislative process advances.

Looking ahead, the most likely outcome is that Proposition 12 becomes one of the central amendment fights during Senate farm bill deliberations. The pork industry retains substantial support among agricultural-state lawmakers and many national farm organizations. However, opposition from Schumer and animal welfare groups ensures that any attempt to add a fix will face intense scrutiny and procedural hurdles.

The broader significance extends beyond pork production. The outcome will help determine whether Congress is willing to place limits on state laws that affect agricultural production beyond state borders. That precedent could influence future debates involving livestock production practices, environmental standards, labeling requirements and food system regulations. For that reason, both supporters and opponents view the battle over Proposition 12 as much larger than pork, making it one of the most consequential unresolved issues in the 2026 farm bill debate.

Major US meat and livestock organizations: The groups that shape policy, trade and production

From cattle ranchers and feedlots to pork producers, poultry companies, processors, exporters, and emerging advocacy groups, these organizations represent the diverse interests of the American meat industry and play a major role in Washington policymaking

The US meat and livestock industry is represented by a broad network of national and regional organizations that advocate for producers, processors, marketers, exporters, and allied industries. While dozens of groups operate across the country, roughly a dozen organizations stand out for their influence on federal policy, trade negotiations, animal health programs, food safety regulations, labor issues, environmental policy, and state initiatives such as California's Proposition 12.

At the processor and packer level, the most influential organization is the Meat Institute. Formerly known as the North American Meat Institute, the organization represents companies responsible for the overwhelming majority of US meat and poultry processing, including major firms such as Tyson Foods, JBS USA, Cargill, and Smithfield Foods. The Meat Institute is heavily involved in food safety, labor issues, animal welfare regulations, trade policy, sustainability initiatives, and state regulatory matters.

The nation's largest cattle producer organization is the National Cattlemen's Beef Association, which represents cow-calf producers, stocker operators, feedlots, and ranchers. NCBA serves as the primary Washington advocate for the beef industry on issues including trade, taxes, environmental regulations, animal health, market structure, and federal grazing policy. It also plays a key role in administration of portions of the Beef Checkoff program.

One of the most powerful regional organizations in agriculture is the Texas Cattle Feeders Association. Although not a national organization, TCFA represents feedyards in Texas, Oklahoma, and New Mexico that market more than one-quarter of all fed cattle produced in the United States. Because the High Plains region is the center of US cattle feeding, TCFA carries substantial influence on issues involving cattle feeding economics, packing capacity, feeder cattle imports, border policy, New World screwworm prevention, and animal disease management. The organization's influence has been particularly notable during the Trump administration because of the importance of the region to the national beef supply chain.

The pork sector is represented primarily by the National Pork Producers Council, the industry's leading lobbying organization. NPPC advocates on trade, labor, environmental regulations, animal health, farm bill provisions, and Proposition 12-related issues. Complementing NPPC is the National Pork Board, which administers checkoff-funded research, promotion, consumer education, and market development programs for pork producers.

A newer entrant into the policy arena is the American Meat Producers Association. Formed in 2025, AMPA represents farmers, ranchers, meat producers, and allied companies that generally support state animal-welfare standards and oppose federal efforts to override laws such as Proposition 12. While smaller than long-established organizations such as NCBA, NPPC, or the Meat Institute, AMPA has become increasingly visible as debates over animal housing standards and federal preemption have intensified.

International trade and export promotion are led by the US Meat Export Federation, which works to expand overseas demand for US beef, pork, and lamb. Because exports contribute significantly to producer profitability, USMEF is one of the industry's most influential organizations in trade negotiations and international market development.

The poultry sector is represented by several major organizations. The National Chicken Council serves as the primary voice for broiler chicken processors and integrated poultry companies. The National Turkey Federation advocates for turkey growers and processors on trade, animal health, nutrition, and regulatory matters. Additional influence comes from the US Poultry & Egg Association, the USA Poultry & Egg Export Council, and the United Egg Producers, all of which are active on export, food safety, animal health, and industry development issues.

Smaller processors and specialty sectors also maintain significant representation. The American Association of Meat Processors represents independent and regional meat processors across the country and frequently advocates on regulatory, inspection, and workforce issues affecting smaller facilities. The Livestock Marketing Association represents livestock auction markets and marketing agencies, providing a critical voice on animal movement, disease response, and price discovery. The American Sheep Industry Association serves sheep and lamb producers on issues ranging from trade and predator control to grazing rights and wool programs.

Together, these organizations form the leadership structure of the US meat and livestock sector. The Meat Institute, NCBA, NPPC, USMEF, NCC, NTF, and TCFA are generally regarded as the most influential organizations in Washington because of their size, membership, and longstanding relationships with policymakers. At the same time, organizations such as AMPA, AAMP, LMA, ASI, USPOULTRY, USAPEEC, UEP, and the National Pork Board provide specialized expertise and increasingly important perspectives on the issues shaping the future of American meat production. As debates continue over trade, animal health, labor, sustainability, and animal welfare standards, these groups collectively serve as the principal voices representing one of the largest and most economically important sectors of US agriculture.

USDA monthly cattle-on-feed report overall price-friendly

USDA last Thursday afternoon reported US cattle and calves on feed for the slaughter market for feedlots with capacity of 1,000 or more head totaled 11.7 million head on June 1. The inventory was 2 percent above June 1, 2025. Placements in feedlots during May totaled 1.70 million head, 10 percent below 2025. Net placements were 1.65 million head. During May, placements of cattle and calves weighing less than 600 pounds were 320,000 head, 600-699 pounds were 240,000 head, 700-799 pounds were 400,000 head, 800-899 pounds were 444,000 head, 900-999 pounds were 225,000 head, and 1,000 pounds and greater were 75,000 head. Marketings of fed cattle during May totaled 1.55 million head, 12 percent below 2025. Marketings were the second lowest for May since the series began in 1996. Other disappearance totaled 55,000 head during May, 11 percent below 2025.

Australian beef hits China’s tariff wall as quota fills early

Beijing’s safeguard measure reshapes global beef trade and could redirect more Australian product toward the US and other Asian markets

Australia’s booming beef trade with China has run into a major obstacle after Chinese authorities confirmed that imports have reached the country’s annual tariff-rate quota of 205,000 metric tons. Beginning June 20, Australian beef shipments above that threshold will face an additional 55% tariff, significantly raising costs for Chinese buyers and threatening to slow one of Australia’s fastest-growing export markets.

The development highlights the increasingly managed nature of global agricultural trade. China imposed the quota in late 2025 as part of a broader effort to support domestic livestock producers and limit import growth from major beef suppliers, including Australia, Brazil, and Argentina. The fact that Australia exhausted its allocation before the midpoint of 2026 underscores both the strength of Chinese beef demand and Australia's expanding production capacity.

Australian beef exports to China exceeded 300,000 tons in 2025, the highest level in six years. Demand has been supported by rising incomes, changing dietary preferences, and periodic shortages in China’s domestic cattle sector. At the same time, Australia has benefited from large cattle supplies following favorable production conditions, allowing exporters to aggressively pursue overseas markets.

The immediate impact will likely be a slowdown in Australian shipments to China as importers reassess the economics of paying the much higher duty. Some premium beef products may continue to move because affluent Chinese consumers are less sensitive to price increases, but many commodity beef cuts could become less competitive against domestic supplies or imports from countries with remaining quota capacity.

For agricultural markets, the bigger question is where those displaced Australian exports will go. The answer may be favorable for Australian producers. The United States remains a particularly attractive destination as the US cattle herd is near multi-decade lows, beef production is tightening, and processors continue searching for imported lean beef to blend into hamburger production. Strong demand across Japan, South Korea, Southeast Asia, and the Middle East also provides alternative outlets.

From a global trade perspective, the quota demonstrates China's growing willingness to use tariff-rate mechanisms rather than outright bans to manage agricultural imports. Beijing can claim it remains open to trade while still controlling import volumes and supporting domestic producers. The policy also gives Chinese officials flexibility to adjust market access if food inflation becomes a concern.

Attention is now turning to Brazil, which could also approach its Chinese beef quota later this year if export volumes remain strong. If multiple major suppliers encounter quota limits, China may eventually face a difficult balancing act between protecting domestic cattle producers and ensuring adequate meat supplies for consumers.

For US cattle producers, the news is mixed. Reduced Australian access to China could create opportunities for US beef exports in some premium segments if trade conditions permit. However, it may also result in more Australian beef competing in other export markets, particularly across Asia. For importers and processors in the United States, additional Australian supplies could help ease tight domestic beef availability and moderate some input costs.

The broader takeaway is that global beef demand remains exceptionally strong despite economic uncertainty. The fact that Australia exhausted a 205,000-ton Chinese quota in less than six months suggests that worldwide protein consumption continues to expand, even as governments increasingly intervene to shape trade flows and protect domestic agricultural sectors.

Weekly USDA US beef, pork export sales

Beef: Net sales of 21,300 MT for 2026 were up noticeably from the previous week and up 88 percent from the prior 4-week average. Increases were primarily for South Korea (7,100 MT, including decreases of 100 MT), Japan (3,400 MT, including decreases of 400 MT), Taiwan (3,400 MT, including decreases of 200 MT), Mexico (1,200 MT), and Hong Kong (1,200 MT). Exports of 13,000 MT were unchanged from the previous week, but up 2 percent from the prior 4-week average. The destinations were primarily to South Korea (3,800 MT), Japan (3,300 MT), Taiwan (1,500 MT), Mexico (1,200 MT), and Hong Kong (800 MT). Export Adjustments: Accumulated exports of beef were adjusted down 2,300 MT to Vietnam (58 MT), Canada (368 MT), Egypt (424 MT), Japan (141 MT), Italy (155 MT), Kuwait (176 MT), Mexico (177 MT), Morrocco (218 MT), Oman (63 MT), Qatar (215 MT), Saudi Arabia (128 MT), and South Korea (177 MT) for week ending June 4. These exports were reported in error. 

Pork: Net sales of 26,200 MT for 2026 were up 63 percent from the previous week, but down 6 percent from the prior 4-week average. Increases were primarily for Mexico (9,700 MT, including decreases of 900 MT), Japan (3,700 MT, including decreases of 300 MT), South Korea (2,800 MT, including decreases of 200 MT), Colombia (2,400 MT, including decreases of 100 MT), and Canada (2,100 MT, including decreases of 300 MT). Total net sales of 200 MT for 2027 were for Australia. Exports of 32,000 MT were up 7 percent from the previous week, but unchanged from the prior 4-week average. The destinations were primarily to Mexico (15,900 MT), Japan (4,400 MT), China (3,400 MT), South Korea (2,200 MT), and Colombia (1,500 MT).

Weekly USDA dairy report

CME GROUP CASH MARKETS (6/18/26) BUTTER: Grade AA closed at $1.5550. The weekly average for Grade AA is $1.5838 (-0.0827). CHEESE: Barrels closed at $1.4600 and 40# blocks at $1.4500. The weekly average for barrels is $1.4300 (-0.0240) and blocks $1.4631 ( 0.0184). NONFAT DRY MILK: Grade A closed at $1.6400. The weekly average for Grade A is $1.6725 (-0.1970). DRY WHEY: Extra grade dry whey closed at $0.6800. The weekly average for dry whey is $0.6831 (+0.0061). 

BUTTER HIGHLIGHTS: Stakeholders in the East region report domestic butter demand is strong. Stakeholders in the Central and West regions report domestic butter demand is steady. Export butter demand varies from steady to lighter throughout the country. Spot cream loads are available. Demand from butter manufacturers is stronger. Butter production remains stable. Many facilities are running churns close to capacity. 80 and 82 percent butterfat butter loads are available for spot buyers. Bulk butter overages range from 4 cents below to 5 cents above market across all regions. 

CHEESE HIGHLIGHTS: East region milk supplies for cheese plants remain steady as the spring flush ends and temperatures normalize. Component yields dipped earlier than expected this year but haven't affected cheese output or quality. Production runs seven days a week, though seasonal demand is softer than usual. Central region milk output is strong as cheesemakers lean on internal supplies. There are fewer discounted Class III offers, with prices from $2 under to $0.50 over. Production stays busy with more barrels, steady domestic demand, and strong Mexican export interest. West region milk and cream supplies meet cheesemakers' needs, as spot milk availability is mixed. Production is steady, inventories tight, and spot cheese accessible. Domestic and international demand is steady.

FLUID MILK HIGHLIGHTS: Milk production is generally down nationwide. Some regions are still seeing strong farm volumes, but most are down as summer temperatures begin to take hold. Class I demand is soft, with most educational institutions off for the summer. Milk that was originally destined for bottling is being diverted predominantly to Class II and IV use. Class II production is seasonally strong as ice cream makers are working to meet peak demand. Class III demand is steady. Cheesemakers are reporting fewer spot sales of milk this week. Spot prices for Class III milk range from $2-under to $0.50 over Class. Class IV demand is steady this week. Some facilities are taking in spot loads of cream and milk to offset any downtime issues in other facilities. Butter and powder production are steady despite falling prices. Condensed skim demand is strong, particularly in the Northeast. Buyers are having difficulty securing spot loads of condensed skim. Condensed skim prices range from $1.70 - $2.16 for Class III and $2.08 - $2.55 for Class II. Cream multiples for all Classes range: 1.28 – 1.52 in the East; 1.10 – 1.42 in the Midwest; 1.02 – 1.24 in the West. DRY 

PRODUCTS HIGHLIGHTS: Nonfat dry milk prices declined sharply across all heat levels and regions, with the most significant decreases occurring at high-heat levels nationwide. Dry buttermilk prices were steady in the Central and East regions, while the West region decreased across the full price series. Dry whey prices were steady in all regions, with only slight increases noted at the top of the range in the Central region and at the bottom of the range in the East. Lactose prices moved higher throughout the price range, while the mostly range held steady. Whey protein concentrate (WPC) 34% increased at the top of the price range and remained unchanged elsewhere. Dry whole milk prices eased at both ends of the range. Acid and rennet casein prices were unchanged.

INTERNATIONAL DAIRY MARKET NEWS

WEST EUROPE: The number of dairy farms in the United Kingdom has fallen below 7,000 for the first time, reflecting a long-term trend of industry consolidation and structural change. European dairy markets have shown signs of stabilizing in recent weeks after an extended period of price weakness, with values for several key commodities finding firmer footing. While milk supplies remain ample across much of the region, improved demand and a slowdown in price declines have helped support market sentiment. 

EAST EUROPE: Productivity gains and ongoing farm consolidation have supported production despite declining cow numbers, while a growing share of milk is being directed toward cheese manufacturing. Latvia has expanded its dairy processing capacity with the opening of a new cheese facility designed to handle significant volumes of milk and support growing export demand. 

OCEANIA

AUSTRALIA: Dairy Australia recently published new data on packaged milk sales. In April 2026, total packaged milk sales reached 191.0 million liters, an increase of 1.7 million liters year-over-year (YoY). Packaged milk sales year-to-date (YTD) for Australia's 2025/2026 season total 1,968.6 million liters, up 23.3 million liters (1.2 percent) season-over-season. Dairy Australia also released updated export data showing that milk export volumes from July 2025 through April 2026 totaled 139,822 metric tons, a 15.2 percent increase compared to the same period a year earlier. 

NEW ZEALAND: The group's 2025/2026 season milk price forecast remains at $9.74/kilograms of milk solid. The Ministry for Primary Industries (MPI) released its latest Situation and Outlook for Primary Industries (SOPI) report. For the year ending June 30, 2026, New Zealand's food and fiber sector is projected to generate $64.3 billion in revenue, representing 82 percent of the country's total exports. Dairy revenue is forecast to rise 5 percent to a record $28.6 billion. 

SOUTH AMERICA: Milk production is lighter in South America as herds shift into a lower seasonal output period. Year-over-year milk production is up, but gains are slowing. An El Niño system is anticipated in 2026, which would increase precipitation in key dairy areas to above average figures. Production of dairy products such as skim milk powder, whole milk powder, and cheese are somewhat lighter as seasonal milk production changes take place. No changes in demand for skim milk powder or whole milk powder are reported by stakeholders.