CME livestock futures decline on expectations of US-Mexico import restart
Lean hog market records ninth consecutive daily loss
USA – Feeder cattle futures on the Chicago Mercantile Exchange recently moved lower as market participants anticipated a possible announcement from the US Department of Agriculture regarding the resumption of livestock imports from Mexico.
This expectation drove some contracts to hit the exchange’s daily trading limit earlier in the session before Brooke Rollins addressed an event in Texas, which remains the largest cattle-producing state in the United States.
Despite market speculation, Rollins did not confirm a timeline for reopening imports, stating that restrictions remain in place due to the continued threat of the New World screwworm pest, which has been advancing northward in Mexico.
She indicated that the pest is currently about 200 miles from the US border and said authorities would not reopen any Texas entry points until the risk has been significantly reduced.
To manage the outbreak, the USDA is constructing a facility at Moore Air Base in Edinburg, Texas, where sterile flies will be produced as part of an eradication programme targeting the pest population.
Supply pressures persist
The prolonged suspension of cattle imports from Mexico has tightened US supply, contributing to elevated domestic prices.
At the same time, ongoing drought conditions across parts of the western United States have reduced grazing capacity, forcing ranchers to send more cattle to slaughter earlier than planned.
Rollins added that she intends to visit a livestock entry point in Douglas, Arizona, the following week, which the USDA had previously identified as the lowest-risk location for resuming imports.
She expressed confidence in the preparations made at that site, suggesting it could play a role in future reopening plans once biosecurity concerns are addressed.
Futures markets extend losses
In trading activity, CME May feeder cattle futures closed down by 1.825 cents to US$3.65 per pound, after earlier dropping to US$3.58 per pound, extending losses following a contract high reached earlier in the week.
Live cattle futures also declined, with the June contract settling 0.275 cents lower at US$2.47 per pound, reflecting continued pressure across the cattle complex.
Market analysts noted that feeder cattle led the downward movement, signalling broader concerns about supply dynamics and policy uncertainty.
Separately, USDA data released after the close of trading showed approximately 11.6 million cattle in US feedlots as of 1 April, marking a 0.5% decrease compared to the same period last year and aligning with prior forecasts.
Meanwhile, lean hog futures on the CME extended their losing streak to nine consecutive sessions, with the June contract closing down 0.625 cent at US$1.01 per pound, its lowest level since December.
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