Chicago | Reuters – Chicago Mercantile Exchange feeder cattle futures rallied on Thursday to a record high on strong cash market prices and tight supplies linked to the U.S. suspension of Mexican imports due to the spread of screwworm south of the border.
Live cattle followed feeders higher, posting new contract highs in deferred contract months, although gains were limited by weaker cash beef prices and poor packer margins.
Beef export concerns also restrained gains in live cattle following data showing record Brazilian beef shipments to China, the fourth-largest importer of U.S. beef last year. China has halted most U.S. agricultural imports amid trade tensions with Washington.
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“Tight inventory levels continue to support feeder cattle, as is the lack of a negative impact from the announcement of a vaccine for New World Screwworm. This weighed heavily on feeder cattle when announced but has since lost its impact as imports from Mexico remain suspended,” said Karl Setzer, partner at Consus Ag Consulting.
Benchmark CME November feeder cattle FCX25 settled 5.225 cents higher at 374.050 cents per pound. The lightly traded spot October contract FCV25 peaked at 375.150 cents per pound, the highest level on record for a front-month FCc1 contract.
CME December live cattle LCZ25 rose 1.025 cents to end at 239.900 cents per pound.
All feeder cattle contracts and all live cattle contract from April 2026 and beyond posted lifetime highs.
The wholesale choice boxed beef cutout turned lower on Thursday afternoon, easing by 94 cents to $365.22 per hundredweight, according to U.S. Department of Agriculture data. The select cutout fell 91 cents to $344.33 per cwt.
Lean hog futures fell for a fourth straight day on technical pressure and selling tied to slumping hog prices in China due to a production glut.
CME December lean hogs LHZ25 closed down 1.750 cents at 84.350 cents per pound.
