Global protein markets see dairy price rebound and beef supply constraints

Global protein markets are experiencing varied shifts in pricing and supply. In the dairy sector, the Food and Agriculture Organization's Dairy Price Index rose 2.3 percent in August to 119.2 points. This rebound was driven largely by milk powder, with skim milk powder and whole milk powder prices increasing 3.0 percent and 2.4 percent respectively, as tightening supplies in the Northern Hemisphere offset seasonal softness in Oceania.

In the cattle markets, beef prices face upward pressure due to tightening supplies. FAPRI projects that US beef prices will remain high, with direct steer prices potentially reaching record levels in 2027. However, cattle futures have faced pressure from weak cash trading, with October live cattle hitting a nine-month low.

Environmental factors are also impacting livestock, with reports of horrific stress in the southern Plains due to persistent excessive heat and lack of rain. Additionally, the Agua Prieta cattle crossing from Sonora into the United States is expected to reopen on September 8 following a temporary suspension for repairs.