Lean hog futures end higher - CME
Feeder cattle markets fall on screwworm update
16 December 2024
2 minute read
By: Chicago Mercantile Exchange (CME) feeder cattle futures fell on Friday, on news the US could resume feeder cattle imports from Mexico after Washington suspended cattle imports from Mexico over a case of New World screwworm, reported Reuters.
Meanwhile, live cattle futures rose on a robust cash cattle trade this week, according to livestock analyst Cassie Fish. And lean hog futures turned higher on strength in pork wholesale prices early Friday.
Some feeder cattle imports may resume as soon as this month, once Mexico implements new trade protocols aimed at blocking the spread of the pest, a US Department of Agriculture official told Reuters.
Maggots from screwworm flies burrow into the skin of living animals, causing serious and often fatal damage, and the US is working to block the pest that has spread through Central America. The Biden administration on Friday approved a second round of emergency funding to aid the effort to keep the pest out of the US.
The reaction in the market was "knee-jerk profit-taking," said Dan Norcini, an independent trader, though he added he did not expect a flood of feeder cattle across the border.
CME January feeder cattle settled 0.700 cent lower at 257.65 cents per pound. February live cattle ended 1.175 cents higher to settle at 192.025 cents per pound.
Choice boxed beef added $1.15 to $316.39 per hundredweight, the US Department of Agriculture (USDA) reported on Friday afternoon, and select boxed beef gained $3.38 to $283.86 per cwt.
CME lean hog futures also ended higher, driven by morning cut out prices, said Norcini, which sent traders scrambling to bolster their long positions.
Pork carcasses gained $3.86 to $96.17 per cwt on Friday morning, according to the USDA. They gained $2.30 to $94.61 per cwt on Friday afternoon.
February futures settled 1.125 cents higher at 85.600 cents per pound.
