Why are Mexican cattle imports blocked by the U.S.?

Mexican cattle imports are currently blocked by the U.S. due to recent detections of the New World screwworm in animals in Mexico.

What is the impact of screwworm on cattle prices?

The fear of screwworm has led to tight U.S. supplies and a ban on Mexican imports, driving cattle futures prices to their highest levels since October.

How are meatpackers affected by high cattle prices?

Meatpackers are facing significant financial losses, with estimates of $262.60 to $229.75 per head slaughtered due to the increased cost of cattle.

Home / Business and Economy / Cattle Futures Surge on Tight Supplies, Mexico Block

Cattle Futures Surge on Tight Supplies, Mexico Block

7 Jan

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Summary

Cattle futures reached their highest prices since October.
Mexican cattle imports remain blocked due to screwworm fears.
Meatpackers faced significant losses on cattle slaughter.

Cattle Futures Surge on Tight Supplies, Mexico Block

Cattle futures on the Chicago Mercantile Exchange hit their highest prices since October on Tuesday, fueled by strong cash markets and predictions of ongoing U.S. supply shortages. Analysts suggest that Washington will maintain its ban on U.S. imports of Mexican cattle, following recent detections of the New World screwworm in Mexico. This import restriction has been in place since May 2025, aimed at preventing the parasite's entry.

Traders anticipate the ban's continuation due to last week's screwworm cases. CME's March feeder cattle futures rose significantly, while February live cattle futures also advanced, matching recent highs. The robust cash prices, however, are negatively impacting meatpackers' profit margins, with estimated losses of $262.60 to $229.75 per head.

In related news, CME's lean hog futures experienced a minor dip after a recent rise to an October high. The U.S. hog herd saw a slight increase of about 1% from the previous year as of December 1, totaling 75.5 million head, according to USDA data.