U.S. livestock: Cattle futures surge as second screwworm case announced

Chicago | Reuters – Chicago Mercantile Change cattle futures rallied on Friday as two new screwworm instances have been introduced in Mexico in two days, protecting the deal with tight cattle provides.

CME February reside cattle LCG26 settled 4.400 cents increased at 236.000 cents per pound, having hit the best peak since October 24, and March feeder cattle FCH26 settled 7.625 cents increased at 352.950 cents per pound, additionally having reached the best since October 24.

A case of New World screwworm was detected in a goat in Mexico’s central state of Mexico, the nation’s agricultural ministry mentioned late on Thursday night.

On December 31, the ministry reported a case in a cow within the northern state of Tamaulipas.

Each animals that examined optimistic for the pest have been handled and have been the one animals at their websites contaminated, the ministry mentioned.

The U.S. border is at present closed to cattle imports from Mexico due to the screwworm infestation.

“This implies that we are going to not see the border with Mexico reopen anytime quickly for feeder cattle to return north to U.S. feedlots, protecting Southern Plains heaps comparatively empty for the foreseeable future and U.S. cattle provides tight,” mentioned Arlan Suderman, chief commodities economist at StoneX Group, in a publication on Friday.

The U.S. Division of Agriculture reported on Friday afternoon that boxed beef values rose $2.52 to $349.97 per hundredweight for selection cuts and $4.54 to $346.92 per cwt for choose cuts.

CME benchmark February lean hog futures LHG26 fell 1.000 cent to 84.100 cents per pound.

The USDA on Friday afternoon reported pork carcasses rose $0.83 to $94.57 per cwt and bellies fell $1.38 to $121.12 per cwt.

-Reporting by Renee Hickman

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