February lean hog futures settle lower - CME
Cattle prices down as Mexican cattle imports expected to resume
17 December 2024
2 minute read
Chicago Mercantile Exchange (CME) live and feeder cattle futures fell on Monday as market players digested news that Mexican cattle imports to the US will likely resume in the New Year, Reuters reported, citing traders.
Mexican cattle shipments were suspended last month due to the discovery of New World screwworm in southern Mexico.
The US Department of Agriculture (USDA) late on Friday said shipments will likely resume after the New Year, walking back previous comments that it could restart Mexican cattle imports before year-end holidays.
“The trade is saying it’s bearish news because a second USDA official said they’ll open up imports,” Rich Nelson, director of research at Allendale, said.
February live cattle ended 2.050 cents lower to settle at 189.975 cents per pound. CME January feeder cattle settled 2.100 cents lower at 255.550 cents per pound.
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.
Cattle and hog futures have also been pressured by investors booking profits ahead of the year’s end, traders said.
However, strong wholesale beef and pork values as well as anticipation that the second Trump administration may impose import tariffs on Canadian cattle and hogs have helped underpin futures.
Choice boxed beef added 98 cents to $317.37 per hundredweight (cwt), the US Department of Agriculture reported on Monday afternoon, and select boxed beef gained $5.71 to $289.57 per cwt.
Pork carcasses gained 92 cents to $95.53 per cwt on Monday afternoon, according to the USDA.
February lean hog futures settled 2.050 cents lower at 83.550 cents per pound.
