The markets will now be most certainly expecting an interest rate cut next month after today’s brand new inflation read. The Consumer Price Index is in line with expectations.
The CPI for July came in at 0.2 percent, which is exactly what the markets were expecting. On the year, it landed at 2.7 percent, which is one-tenth below what analysts were preparing for.
Numbers show shelter costs were the largest contributor to inflation last month.
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Protein markets are fragmenting. Beef is supply-driven and more structurally expensive, whereas pork and poultry remain price-competitive.
Tight fed supplies shift margin risk to packers, strengthening cattle price leverage but increasing volatility.
Expanding chicken supplies are likely to keep prices under pressure in early 2026 despite steady demand growth.
Federal nutrition policy is signaling a stronger demand for whole foods produced by U.S. farmers and ranchers. Consumer-facing guidance favors animal protein, but institutional demand may change little under existing saturated fat limits.
Retail pricing confirms tight cattle supplies and supports continued leverage for producers, reinforcing the need for disciplined risk management.
Long-term demand uncertainty is reshaping specialty crop strategies as producers adapt to fewer, older consumers.
Seasonal boxed beef softness does not change the tight-supply outlook — leverage remains closer to the farm gate heading into 2026.
The U.S. Meat Export Federation plans to expand its global market presence in the New Year and says it is focusing its appeal on the growing middle class worldwide.
Preserving equity through active risk management remains critical in a volatile, supply-driven market.
