25 February 2025

2 minute read

By: Global Ag Media

North America

Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures closed higher on Monday, for a second consecutive session, driven by firm beef prices and supportive monthly US government feedlot data, Reuters reported, citing traders.

CME April live cattle futures closed Monday up 1.150 cents at 195.100 cents per pound, clawing back from a near two-month low set last week at 193.025 cents.

March feeder cattle ended 4.350 cents higher at 272.300 cents per pound.

As of February 1, the number of cattle in US feedlots was down 1% from last year, the US Department of Agriculture reported after the market closed on Friday, while analysts surveyed by Reuters, on average, had expected a smaller drop of 0.8%. Placements of cattle into feedlots during January were up 2% from a year ago, the USDA said, while analysts on average had expected a larger increase of 2.2%.

"A friendlier-than-expected Cattle on Feed report, combined with higher beef prices, encouraged some buying (in futures). And some of that buying was short-covering," said Dan Norcini, an independent trader.

In the beef market, the USDA's boxed-beef index for choice cuts rose $2.96 on Monday afternoon to $313.73 per hundredweight (cwt), rebounding from a near three-month low set on Friday at $310.77. Select cuts were up $1.41 at $303.97.

A cattle pest, New World screwworm, was found in the Mexican state of Quintana Roo, the World Organization for Animal Health said. The finding followed cases in two other states including Tabasco earlier this month and Chiapas in November.

The USDA last week said that it would not restrict cattle imports from Mexico following the Tabasco finding. The USDA had banned Mexican cattle in November but lifted that ban on February 1 under new protocols to assess the health of animals before they enter the US from Mexico.

In CME's lean hog market, April futures fell for a fourth straight session, settling down 0.275 cent at 87.400 cents per pound.