Beef costs surge as cattle futures leap on provide fears
18 August 2025
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Chicago Mercantile Trade (CME) cattle futures rallied on Friday on hovering beef costs and tight provides of cattle as imports from Mexico stay suspended as a result of unfold of New World screwworm south of the border, reported Reuters.
The US Division of Agriculture (USDA) on Friday introduced it could spend $750 million to construct a facility in Texas that produces sterile flies to battle the flesh-eating livestock pest.
Feeder cattle futures prolonged good points on the information as some merchants had anticipated the company to ease import restrictions when USDA Secretary Brooke Rollins mentioned earlier within the week she can be making a “main announcement” about screwworm.
“You had the screw worm updates, and clearly commerce did not take them as bearish. We’re making progress, akin to with the manufacturing facility, however the border remains to be closed and there is not any timeline on that. It is simple to see patrons come again in,” mentioned Matthew Wiegand, dealer at FuturesOne.
CME October reside cattle futures ended 3.825 cents greater at 230.650 cents per pound after rising to inside 0.975 cent of a contract excessive posted final week. September feeder cattle jumped 6.325 cents to 347.350 cents per pound.
Hovering wholesale beef costs stored cattle futures nicely supported.
The selection boxed beef cutout worth was up $6.78 on Friday at $400.57 per hundredweight (cwt), the best for the reason that early days of the Covid pandemic in Could 2020, based on USDA information. The choose beef cutout was up $3.88 at $370.76 per cwt.
Lean hog futures adopted cattle markets greater on Friday after sinking to a two-week low within the prior session, though good points had been held in verify by expectations for rising provides.
CME October lean hogs gained 0.975 cent to settle at 90.100 cents per pound.
