CME February live cattle LCG26 settled 4.400 cents higher at 236.000 cents per pound, having hit the highest peak since October 24, and March feeder cattle FCH26 settled 7.625 cents higher at 352.950 cents per pound, also having reached the highest since October 24.

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

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

Both animals that tested positive for the pest were treated and were the only animals at their sites infected, the ministry said.

The U.S. border is currently closed to cattle imports from Mexico because of the screwworm infestation.

“This suggests that we will not see the border with Mexico reopen anytime soon for feeder cattle to come north to U.S. feedlots, keeping Southern Plains lots relatively empty for the foreseeable future and U.S. cattle supplies tight,” said Arlan Suderman, chief commodities economist at StoneX Group, in a newsletter on Friday.

The U.S. Department of Agriculture reported on Friday afternoon that boxed beef values rose $2.52 to $349.97 per hundredweight for choice cuts and $4.54 to $346.92 per cwt for select 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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Mexico’s agriculture ministry said in a statement that the plant, a joint project with the U.S., will produce 100 million sterile screwworm flies per week once completed in the first half of 2026.

Why it matters: The U.S. shut its southern border to Mexican cattle imports earlier this year due to a case of New World screwworm, reducing already tight cattle stocks.

The release of sterile flies, which reduce the reproducing population of the wild flies, is a key tool in controlling the pest.

The United States, Mexico’s biggest trading partner, is paying $21 million of the cost and Mexico is spending $30 million, the statement said.

The U.S. closed its southern border to imports of certain livestock, including cattle, from Mexico on May 11 after screwworm, which has been eradicated in the U.S. for decades, began moving northward in Mexico.

On June 30, The U.S. Department of Agriculture announced the gradual reopening of imports of cattle, bison and horses from Mexico. Ports are due to reopen in phases starting Monday, beginning with Douglas, Arizona.

The U.S. also announced plans to open a sterile fly dispersal facility in Hidalgo County, Texas, as part of the country’s fight against screwworm.

The pest can infest livestock and wildlife and carry maggots that burrow into the skin of living animals, causing serious and often fatal damage.

—Reporting by Adriana Barrera

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Ports will reopen in phases as early as July 7, beginning with Douglas, Arizona, which the USDA said is the lowest risk entry point due to its location and the “long history of effective collaboration” between officials in Sonora and USDA’s Animal and Plant Health Inspection Service.

Why it matters: The U.S.-Mexico border has been closed to cattle imports since May 11, further constricting an already tight cattle supply.

The southern U.S. border was closed to imports of the animals on May 11 after screwworm, a species of fly that has been eradicated in the U.S. for decades, had been moving northward in Mexico. Additional ports in New Mexico and Texas may be reopened in coming weeks.

The pest can infest livestock and wildlife and carry maggots that burrow into the skin of living animals, causing serious and often fatal damage.

As part of the country’s effort to fight screwworm encroachment, the USDA announced plans on June 18 to open a sterile fly dispersal facility in Texas, and invested $21 million in updating a plant in Mexico to produce sterile flies.

“We have made good progress with our counterparts in Mexico to increase vital pest surveillance efforts and have boosted sterile fly dispersal efforts,” USDA Secretary Brooke Rollins said in a release.

“We are continuing our posture of increased vigilance and will not rest until we are sure this devastating pest will not harm American ranchers,” she said.

The port in Columbus, New Mexico, may reopen on July 14, followed by Santa Teresa, New Mexico, on July 21, Del Rio, Texas, on August 18 and Laredo, Texas, on September 15, the USDA said. The agency added that it will evaluate conditions after each reopening to ensure that the enhanced control measures are working.

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A Missouri radio station reported a case of the parasite but later scrubbed the story from its website. RFD-TV on its website posted a statement from the USDA calling the report “not true.”

Markets rebounded as the day went on.

Most active August live cattle settled down 1.150 cents at 209.300 cents per pound. They had bottomed out at 206.375 cents earlier in the day. June live cattle closed at 215.125 cents a pound, down 0.675 cents.

Most active August feeder cattle contracts settled at 298.150 cents a pound, a loss of 2.225 cents. Earlier in the day it hit a low of 293.050 cents.

Choice boxed beef inched up $0.30 to settle at $361.85 per cwt, the USDA said in its afternoon report. Select beef lost $0.49 to close at $350.83 per cwt.

Hog futures, meanwhile, saw modest gains. Most active July lean hogs settled at 102.150 cents a pound, up 0.600 cents. August lean hogs gained 0.900 cents to close at 102.175 cents a pound.

The USDA put pork carcass cutout value at $103.73 per cwt, up $2.27.

—Prices reported in U.S. dollars

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U.S. cattle supplies tightened in recent months after Washington in late November blocked Mexican livestock shipments over the discovery of screwworm in a cow in Mexico.

Another case of screwworm was found in a cow in Mexico’s Tabasco state last week, according to the World Organization for Animal Health.

The pest can infest livestock, wildlife and in rare cases, people. Maggots from screwworm flies burrow into the skin of living animals, causing serious and often fatal damage.

The USDA said on February 1 it would lift the ban it imposed in November under new protocols to assess the health of animals before they enter the U.S. from Mexico.

The agency will not take additional action based on the latest detection, USDA said on Tuesday in response to a question about whether it would halt imports again.

“The comprehensive pre-clearance inspection and treatment protocol is now in place and will ensure safe movement of cattle and bison into the United States and mitigate the threat of New World screwworm,” USDA said.

The latest discovery pushed up feeder cattle futures at the Chicago Mercantile Exchange as some traders anticipated USDA might halt imports from Mexico again.

U.S. cattle supplies are at their lowest levels in 74 years and beef prices are high after ranchers slashed their herds because drought reduced the amount of land available for grazing.

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The USDA said today it won’t restrict cattle imports from Mexico despite the latest case of New World screwworm. However, the discovery pushed up feeder cattle futures as some traders anticipated imports might be halted.

Feeder cattle posted gains with most active March feeders settling at 269.725 cents per pound, up 3.375 cents. April feeder cattle closed at 269.100 cents per pound, up 2.675 cents.

The USDA said on February 1 it would lift the ban it imposed in November under new protocols to assess the health of animals before they enter the U.S. from Mexico.

“The comprehensive pre-clearance inspection and treatment protocol is now in place and will ensure safe movement of cattle and bison into the United States and mitigate the threat of New World screwworm,” the USDA said.

Most active April live cattle futures settling at 194.025 cents a pound for a loss of 0.225 cents. August live cattle settled at 188.825 cents per pound, up 0.050 cents.

Choice boxed beef ended the day at $315.77 per cwt, up $0.07. Select boxed beef lost $2.52 cents to close at $303.71, as per the USDA’s afternoon report.

Chicago Mercantile Exchange hog futures ended the day stronger, continuing a general upward trend from early February.

Most active April lean hogs settled at 93.200 cents per pound, up 0.600 cents. June lean hogs closed at 105.250 cents per pound, up 0.575 cents.

The USDA reported pork carcass cutout values at $99.47 per cwt at end of day, down $3.00 per cwt.

—With files from Reuters

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