How Protein Demand Is Impacting Class III Prices, Reopening the Mexican Border, and Maximizing the Grain Rally

Today we start with a look at how GLP-1s and other health trends are increasing demand for dairy proteins, which is bolstering Class III milk prices. We then look at why Mexico wants to get the border reopened to live cattle, and how farmers can take advantage of market rallies. 

Transcript

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Hello and welcome to Chip BDC. Here's the top stories of Lecter Daily today, Friday, July 17th, 2026. Today we're going to focus on the impact of GLP1s and other health trends on milk prices. Push to reopen the Mexican border now farmers can take advantage of the grain market rally. So let's get to it. Start off with an article by Fran Howard on DairyHerd.com. The protein boom, driven by exploding population and income growth, heightened awareness of health benefits, and expanding use of GLP1 weight loss drugs, continues to benefit the U.S. dairy industry. Whey products are an essential part of meeting growing demand for protein, and that's helping prop up farm milk prices, according to Betty Burning, who's an analyst with the Daily Dairy Report. She says dry away prices have stayed above 60 cents per pound, a historically high price since September of last year. And because a nickel increase in dry away prices results in a 30 cent per hundred weight increase in the Class III price, higher whey prices have been providing support to the Class III complex. Export demand for U.S. dryway, which contains between 11 to 15 percent protein, has been strong in 2026. May exports of just over 66.5 million pounds were the largest since June 2010 and the third largest on record. With global protein needs expected to expand 60% by 2050, demand for high protein dairy products will also increase. While some of that demand stems from the explosion of GLP1 weight loss medications, an aging population, and consumer awareness that protein is essential to muscle and overall health is also driving demand. Recent studies show that 12% of Americans are taking GLP1s, while 70% are actively trying to increase their protein intake. As a complete protein, whey products, especially value-added products such as whey protein concentrate with at least 80% protein and whey protein isolate are found in many health and high protein products. Switch over to an article by Clint Peck on Beef Magazine. Mexican cattle groups are asking U.S. authorities to resume technical dialogue with Mexico and establish a clear science-based pathway toward the gradual regionalized and safe reopening of live cattle imports from eligible regions of Mexico. Alvaro Bastillos, the chairman of Chihuahua Cattle Producers, believes cattlemen in Mexico and the U.S. are reaching a critical point in the combined North American cattle and beef industry. He's leading a coordinated effort to restore live cattle trade between Mexico and the U.S. Bustillos Met's message is that it's time for the border to be opened through a science-based, risk-managed, and regionalized approach. He said this can be done while protecting animal health and preserving preserving the integrity of a highly integrated supply chain. In a letter addressed to the National Cattlemen's Beef Association, the Texas Cattle Feeders Association, and several affiliate U.S. ranching and feeding groups, it was emphasized that for decades, Mexican cattle producers and U.S. cattle feeders have worked together as essential partners. He says the relationship has supported U.S. feedlots, processors, rural communities, and consumers while strengthening the competitiveness of North America's beef industry. The prolonged suspension of trade is creating significant disruptions across the entire value chain on both sides of the border. He's asking U.S. cattle organizations to communicate directly with Secretary of Agriculture Brooke Rollins and AFUS leadership, expressing the importance of resuming technical discussions with Mexico. He's asking to encourage a pathway toward the gradual reopening of live cattle imports from eligible regions of Mexico under enhanced animal health safeguards. He's advocating for decisions based on sound science, risk assessment, and regional disease management principles. And he wants to reinforce the message that protecting animal health and maintaining a reliable North American cattle supply chain are complementary objectives. You can read the full letter online. We've got a link to that article on BlackDirtDaily.com. Finishing up with a quick look at grain markets, they rebounded this month after a difficult June, but the harvest alull likely will change that by month's end. Markets are now moving on three things: weather concerns as heat and dryness hit the U.S. corn belt and Europe, escalating geopolitical tensions between disrupting Black Sea grain exports and significant uncertainty around Chinese demand for both corn and soybeans. The rally has pushed prices back to the high end of recent ranges, with wheat challenging contract highs and crude oil recovering over 20% from early July lows. Market sentiment is shifting into neutral. After this month, the pre-harvest rally could take hold to manage the markets. Farmers should know your cash flow needs and use actual production costs and sales to date to rework crop break evens. Well, that's all for now. As always, thanks for tuning in. If you found it useful, drop a comment, subscribe, share, and tell all your friends. Be sure to check out our website at LacTirtHailing.com for the full stories behind these topics and don't forget to sign up for the Like Earth Daily New York. We'll be back Monday with more business news across tech and financial markets, everybody.