Olive oil prices under pressure
Another California ag commodity under pressure.
Olive oil prices have dropped almost 50 percent from January 2024.
Beef packer closure could hurt beef prices
On November 21, Tyson Foods, one of the largest beef packing companies in the United States, announced it will close its cattle slaughter facility in Lexington, Nebraska and reduce its beef operations in Amarillo, Texas down to a single, full-capacity shift. Based on estimated slaughter at both facilities, it will reduce capacity to slaughter fed cattle by more than 7 percent says USDA.
USDA is predicting the 2026 beef price forecast is lowered $11 to $235 per cwt, which is still a 5-percent year-over-year increase.
USDA sees lower milk prices in 2026
A Dec 15 USDA forecast for 2026 says ample milk supplies and weaker-than-expected demand are expected to lower cheese and butter wholesale prices. Robust demand for whey-based protein products will likely reduce the availability of dry whey and hence put upward pressure on dry whey wholesale prices in 2026.Updated 2026 forecasts for wholesale dairy product prices (in dollars per pound) are: Cheddarcheese $1.675 (-6.5 cents), butter $1.675 (-2.5 cents), and dry whey $0.635 (+1.5 cents). The forecast price for NDM remains unchanged at $1.170 per pound.
The updated 2026 forecast for Class III milk is $17.05 per cwt, $0.60 lower than the previous forecast. The projected Class IV price is $14.40 per cwt, $0.10 lower than the previous projection. The all-milk price for 2026 is now forecast at $18.75 per cwt, a $0.50 reduction from last month’s forecast.
Egg Layer inventory coming back
The population of egg laying chickens is coming back from January of this year but still far behind numbers seen in 2023 or 2024 after bird flu hit the nation’s chicken flock.
Wonderful donates Wasco ranch to UC Davis
Despite a win in court, the UFW has not heard a final word from the ALRB who has not yet decided whether the UFW can represent Wonderful’s employees at a Kern County grape nursery.But the issue may be moot as the company decided to close the Wasco nursery and donate the property to UC Davis, ending chances for a union at the 600 employee ranch.The UFW won an election in 2024 but the employer claimed wrong doing by the union and argued the card check law was flawed. Regarding the closure, Wonderful said the grape industry has seen“significantly decreased sales and record losses, with no expectation of a turnaround anytime soon.”