Cattle futures surge to document highs on Mexican import ban
14 Might 2025
2 minute learn
Chicago Mercantile Alternate (CME) reside cattle and feeder cattle futures settled close to contract highs on Tuesday that have been struck throughout the earlier session when a halt to imports of Mexican cattle despatched Chicago cattle futures sky-rocketing, Reuters reported, citing merchants mentioned.
All cattle futures hit lifetime highs on Monday after Washington suspended cattle imports from Mexico over an outbreak of New World screwworm in Mexican cattle, a transfer that Mexican President Claudia Sheinbaum denounced as unfair.
New World screwworm maggots burrow into open wounds on cattle and different animals, typically killing their host inside weeks. The suspension of cattle imports from Mexico will additional constrain an already-tight US cattle provide.
CME August reside cattle futures LCQ25 settled 0.025 cent increased to 211.625 cents per pound. August feeder cattle futures FCQ25 fell 0.375 cent to settle at 306 cents per pound.
Again-month feeder and reside cattle futures contracts hit lifetime highs, however technical resistance saved front-month contracts from additional rallying.
CME June lean hog futures LHM25 rose 1.2 cents to shut at 99.5 cents per pound underneath continued assist from a commerce truce between the U.S. and China.
The U.S. and China agreed on Monday to quickly slash their steep tariffs on one another, serving to to propel livestock futures increased because the world’s high two economies tapped the brakes on a commerce struggle that had fed fears of a world recession.
China is a serious purchaser of U.S. pork merchandise, and the tariff pause created optimistic market sentiment that the key commerce companion will return to purchasing U.S. pork.
In the meantime, grilling season has kicked into excessive gear, and the elevated demand for steaks, burgers and different meats have added underlying assist to cattle and hog futures.
