US Employment by Industry - 4/2025

Cattle Price Crisis

The U.S. Department of Agriculture's April report, published on Friday, offers a crisis-level snapshot of the cattle industry and raises further concerns that a near-term recovery remains unlikely. 

This comes as average supermarket prices for ground beef hit new record highs, just as Americans fire up their grills for Memorial Day weekend.

The report showed that the number of cattle fattening on grain at large commercial feedlots declined to the lowest seasonal level since 2020, while cold storage supplies of beef fell to 418 million pounds in April—the lowest for this time of year since 2014, according to Bloomberg.

Readers have been well informed about the USDA's annual Cattle Inventory report, released earlier this year. 

The report showed that the nation's cattle herd in 2024 fell to a 73-year low, totaling around 86.6 million head.

In early May, Brady Stewart, head of Tyson Foods' beef and pork supply chains, told a Barclays analyst during an earnings call that there are some encouraging signs that a cattle herd "rebuild" cycle could be approaching. 

He added, "From a liquidation standpoint, we're really seeing the bottom at this point as well."

By mid-month, Tyson Foods CEO Donnie King told investors at the BMO Global Farm to Market Conference in New York that, due to the ongoing cattle crisis, there would be a major push to ramp up chicken production as a more affordable alternative to sky-high beef prices for consumers.

The cattle shortage, plus new developments of U.S. Agriculture Secretary Brooke Rollins shutting down live cattle, horse, and bison imports from southern border land ports, have sent Chicago cattle futures soaring to new heights.

At the supermarket, USDA data shows the average price for a pound of ground beef hit a record high of $5.8/lb in April.

The White House's Rapid Response 47 X account recently reposted a video from Fox News that interviewed a rancher who warned, "It's going to take time to rebuild" the nation's herd.

Plus, the Trump administration will put American farmers at the center of the clean food movement, as revealed in the MAHA Report released last week. 

Most Americans don't realize that the beef industry has been hijacked by "chemical pushers," according to Beef Initiative founder Texas Slim.

The Bloomberg chart below illustrates just that.

The bottom line: America's beef industry is in deep trouble. 

While the Trump administration begins to take steps to kick-start a cattle herd rebuilding cycle, a meaningful recovery could take years. 

In the meantime, consumers should expect higher prices and tighter supplies. 

At the same time, the MAHA movement will begin pushing consumers towards clean, locally sourced food.

Now is the time to support local ranchers and farmers by buying directly from them—putting money in their hands, not in the coffers of globalist multinational food companies that have poisoned the food supply chain, hence the public health crisis detailed in the MAHA Report.

Container Ship Traffic

Container ship traffic from China to the US is falling sharply:

Ships departing China for the United States dropped to the second-lowest level in at least 12 months.

The traffic has been down over 50% since its peak in April.

Expect more layoffs in the US transport industry.

Gold Outflow

Gold experienced a weekly outflow of $2.9 Billion, the largest in more than a decade and the third largest in history.

Beef Prices Hit Historic High

US New Home Sales

Sales of new single-family homes in the United States surged by 10.9% from the previous month to a seasonally adjusted annualized rate of 743,000 units, extending the downwardly revised 2.6% increase in the previous session and sharply higher than market expectations of a softer rate of 692,000 homes sold. 

It was the sharpest increase since August of 2022, lifting home sales to their highest since February 2022, likely helped by builder incentives aimed at alleviating affordability challenges that have a firm grip on the resale market.

This was enough to offset the increase in mortgage rates during the month. 

Sales rose the most in the South (11.7% to 478,000) and the Midwest (35.5% to 84,000). 

In turn, sales dropped sharply in the Northeast (-14.8% to 23,000). 

The median home price rose by 0.8% to $407,200. 

In turn, housing inventory was at 504,000 units, equivalent to 8.1 months of supply at the latest sales rate. 

source: U.S. Census Bureau

Iran Missile Update

💠 The US found strategic materials used in Iran missile programs, and
found Iran's construction sector to be controlled by IRGC.

Fed Summary Update

💠 Fed's Bostic: More businesses say they can no longer delay tariff price hikes or job cuts

💠 Fed's Hammack: sentiment data about the economy has been concerning

💠 Fed's Musalem: Monetary policy currently is well positioned

China Gold Imports Surge

• China imported the most gold in nearly a year last month, as strong investor demand and central bank policy shifts pushed bullion inflows sharply higher despite record prices.
• According to customs data released Tuesday, gold imports jumped 73% month-on-month to 127.5 metric tons in April — the highest level since May 2024.
• Market participants attribute the spike in imports to the People's Bank of China (PBOC), which is understood to have allocated fresh import quotas to select commercial banks in April. The central bank, which maintains tight control over physical bullion flows, typically issues licenses only to designated institutions.

Market Brief

💠 Fed's Bostic: Rates in the US are mildly restrictive

💠 Fed's Kashkari: There is big uncertainty now in the economy

💠 Fed's Williams: Uncertainty has led the Fed to keep interest rates steady so far

💠 The Bank for International Settlements (BIS) has warned that growing U.S. financial volatility could spark a sudden scramble for dollars

SP500 Futures: Weekly Prep

🔵 Weekly SP500 Futures Preparation

> Avg Daily Range: ~111/day

> Expected range this week: 5807.75-6085.75

> Volatility: 18

> Daily Goal: ~8

Gold: Weekly Prep

🔵 Weekly Gold Preparation

> Avg Daily Range: ~$87/day

> Expected range this week: $3115.90-$3303.40

> Volatility: 25

> Daily Goal: ~$4

Crude Oil: Weekly Prep

🔵 Weekly Crude Oil Preparation

> Avg Daily Range: ~$2/day

> This week expected range: $58.70-$65.25

> Volatility: 42

> Daily Goal: ~$0.40

US Home Builder Sentiment Falls

Home builder sentiment just plummeted to the lowest level in 13 years for the month of May.

The last time sentiment was this low, it was the 2007-2012 housing collapse.

Builders are reporting very low traffic, increased use of price cuts, and are giving sales incentives on over 60% of listings.

Meanwhile, we have the highest level of spec builder inventory on the market since 2009.

This is bad news for people who want home prices to go up. 

This is good news for prospective buyers - things are about to get cheaper.

US Weather Update

There is currently a drought.

Credit Ratings By Agency

US Home Prices : Inflation-Adjusted

These are the highest US Home prices in US history, adjusted for inflation.

US Credit Card Delinquencies

Serious Credit Card Delinquencies rise to 12.31%, the highest level since 2011.

Mexico Interest Rate

The Bank of Mexico lowered its key rate by 50 bps to 8.50% on May 15th, as annual inflation eased to 3.93% in April and the domestic economy registered a modest 0.2% quarter-on-quarter expansion after earlier weakness. 

The release indicated that the Board could continue calibrating similar 50 bps cuts, anticipating that the disinflation process will allow a further easing cycle while maintaining a restrictive stance. 

However, the central bank remains cautious amid elevated global uncertainty—ranging from US trade tensions to geopolitical conflicts—that could either reignite inflation via peso depreciation or deepen the economic slowdown. 

While progress towards the 3% inflation target is on track, with forecasts pointing to convergence by the third quarter of 2026, members underscored the importance of a flexible policy framework to manage inflation expectations and preserve financial stability, particularly given the peso's recent appreciation. 

source: Banco de México

US Retail Sales

US retail sales rose by 0.1% mom in April 2025, following an upwardly revised 1.7% surge in March. 

The modest gain suggests consumers scaled back spending in response to a wave of tariff announcements in early April, yet the result still exceeded market expectations for no change. 

Biggest increases were seen in sales at food services and drinking places (1.2%), building material and garden equipment supplies dealers (0.8%), furniture (0.3%) and electronics and appliances stores (0.3%). 

On the other hand, the largest decreases were recorded at sporting goods, hobby, musical instrument, & book stores (-2.5%), miscellaneous store retailers (-2.1%), gasoline stations (-0.5%), clothing (-0.4%), health and personal care (-0.2%) and general merchandise stores (-0.2%). 

Meanwhile, sales excluding food services, auto dealers, building materials stores and gasoline stations, which are used to calculate GDP, were down 0.2%, below an upwardly revised 0.5% gain in March and forecasts of a 0.3% rise.

source: U.S. Census Bureau

US Producer Price Inflation MoM

US producer prices fell by 0.5% in April 2025, following a revised flat reading in March and defying market expectations of a 0.2% increase. 

This was the first decline in the PPI since October 2023 and the sharpest drop since April 2020, during the early aftermath of the COVID-19 outbreak. 

The decline was largely driven by a 0.7% fall in service costs, the largest since data collection began in December 2009, primarily due to a 1.6% decrease in margins for trade services, suggesting businesses may be absorbing some of the impact from higher tariffs. 

Prices for final demand services excluding trade, transportation, and warehousing fell 0.3%, while transportation and warehousing services dropped 0.4%. 

Meanwhile, goods prices were flat in April, as a 1.0% decrease in food costs and a 0.4% decline in energy prices offset other components. 

On a yearly basis, the PPI inflation eased to 2.4% in April, the lowest since September 2024 and slightly below forecasts of 2.5%. 

source: U.S. Bureau of Labor Statistics

Container Ships : China to USA

‼️ The ships just keep coming ‼️

China Inflation Rate

China's consumer prices dropped by 0.1% year-on-year in April 2025, maintaining the same pace for the second month and matching market expectations. 

It marked the third consecutive month of consumer deflation, weighed by the combined effects of ongoing trade tensions with the US, weak domestic demand, and persistent employment uncertainty. 

Non-food prices were flat after the prior 0.2% rise, as increases in housing (0.1% vs 0.1% in March), healthcare (0.2% vs 0.1%), and education (0.7% vs 0.8%) were offset by a sharper drop in transport cost (-3.9% vs -2.6%). 

On the food side, prices saw their smallest fall in three months, amid a sharp rebound in fresh food costs in the face of extreme weather, supply chain disruptions, and the impact of trade barriers.

Core inflation, which excludes volatile food and fuel prices, rose 0.5%, holding steady for the second month. 

On a monthly basis, the CPI edged up 0.1%, reversing a 0.4% drop in March and recording the first increase in three months. 

source: National Bureau of Statistics of China

All The Gold Ever Mined

How Crude Oil Becomes Petrol

Top Global Wheat Traders

UPDATE: US Dollar

The US dollar index climbed toward 101 on Friday, poised for its third consecutive weekly gain as improving global trade sentiment and fading expectations of imminent rate cuts supported the greenback. 

The rally was fueled in part by President Donald Trump's announcement of a preliminary trade deal with the UK, the first since the US imposed sweeping tariffs last month. 

Trump also suggested that additional agreements could follow and hinted at a potential easing of tariffs on China, depending on the outcome of upcoming trade talks in Switzerland. 

On the monetary policy front, Federal Reserve Chair Jerome Powell dismissed the idea of a preemptive rate cut in response to potential economic fallout from tariffs. 

Powell also warned of elevated risks to both inflation and unemployment, signaling caution before adjusting policy further. 

The US Dollar posted its strongest gains this week against the Euro, New Zealand Dollar, and Australian Dollar.

US Consumer Inflation Expectations

US consumer inflation expectations for the year ahead were unchanged at 3.6% in April 2025, the same as in March, holding at 2023-highs. 

Year-ahead commodity price expectations increased for gas (+0.3 percentage point to 3.5%), medical care (+0.8 percentage point to 8.7%), college (+2.4 percentage points to 9.1%), rent (+1.8 percentage points to 9%) and home prices (0.3 percentage point to 3.3%). 

In contrast, year-ahead expected price of food decreased by 0.1 percentage point to 5.1%. Meanwhile, inflation expectations for the three-year horizon rose to 3.2%, the highest reading since July 2022 while inflation expectations for the five-year ahead horizon decreased by 0.2 percentage point to 2.7%. 

source: Federal Reserve Bank of New York

FOMC Rate Change Probability

The treasuries market is pricing in a 96.8% chance of no interest rate change by the FOMC this week, Wed May 7.

US Existing Home Sales

Existing home sales are scraping at multi-decade lows, and have shown no meaningful signs of recovery.

The only other time in recent history when homebuyer demand was this low was the 2007-2012 housing crash.

That downturn produced a 25% decline in home prices. In contrast, this downturn has yet to see national prices drop.