Mexico Halts US Cattle Imports Amid Screwworm Scare

Chicago Mercantile Exchange cattle futures experienced an increase on Tuesday, fueled by expectations of stable to improved cash cattle prices and a belief that futures were trading below their cash market value. Front-month June live cattle futures rose 1.500 cents to settle at 248.025 cents per pound, with the most active August contract gaining 2.975 cents to close at 239.700 cents per pound. August feeder cattle futures also saw gains, adding 3.450 cents to finish at 354.150 cents per pound.

Traders are closely watching the New World screwworm parasite situation, with the first domestic infestation since the 1960s identified in a Texas calf last week. The U.S. Department of Agriculture confirmed a total of six cases as of Tuesday. Experts note the pest poses no threat to meat products or food safety, affecting only a small number of animals and not impacting overall cattle supply or beef production.

Despite assurances, uncertainty remains regarding potential consumer demand impacts from an expanding outbreak. Following the CME close, Mexico's agriculture ministry announced it would cease most imports of live animals from the U.S. due to confirmed screwworm cases in Texas and New Mexico. Mexico has recorded over 28,200 screwworm cases since November 2024 and aims to protect its cattle herds in specific northern states currently free of the parasite.