Feeder cattle futures rise after Mexico reports new screwworm case - CME
April lean hog futures rise
19 February 2025
2 minute read
By: Chicago Mercantile Exchange (CME) feeder cattle futures finished higher on Tuesday as some traders worried that Washington would limit imports of cattle from Mexico over the discovery of another cow with the New World screwworm (NWS) pest, reported Reuters.
The US Department of Agriculture (USDA) said after trading ended that it would not take additional action against Mexico over the latest screwworm case because the nations had already implemented new protocols to keep the pest out of the US.
CME March feeder cattle climbed 3.375 cents to end at 269.725 cents per pound. April live cattle futures closed down 0.225 cent at 194.025 cents per pound and hit its lowest price since December 30.
Cattle futures had climbed in late 2024 and early 2025 after the USDA in November suspended imports of cattle from Mexico due to the discovery of NWS in a cow.
The halt tightened US supplies that were already low because ranchers slashed their herds in recent years due to drought that reduced grazing lands. The US typically imports more than a million cattle a year from Mexico.
"We continue to closely monitor cases of NWS in Mexico and Central America and will take additional action to protect US livestock if the need arises," the USDA said in a statement on Tuesday.
Analysts expect a monthly USDA report on Friday will show that placements of cattle into US feedlots in January rose 2.2% from the previous year, according to a Reuters poll.
In CME's lean hog market, recent strength in cash prices helped to support futures, said Rich Nelson, chief strategist for brokerage Allendale.
"The cash markets are still holding up better than expected," he said.
Most-active CME April lean hog futures rose 0.60 cent to end at 93.200 cents per pound and traded near a contract high set last week.
