Chicago | Reuters – Chicago Mercantile Exchange cattle futures fell on investor expectations that U.S. Agriculture Secretary Brooke Rollins might announce a re-opening of the border with Mexico for cattle imports in a speech in Oklahoma on Friday.
The U.S. is currently closed to cattle imports from Mexico because of an infestation south of the border of the flesh-eating New World screwworm parasite, which lays eggs in animal wounds.
The closure has contributed to tight cattle supplies and high beef prices in the United States.
Read Also
China to buy 12 million metric tons of soybeans this season, Bessent says
U.S. Treasury Secretary Scott Bessent said on Thursday that China has agreed to buy 12 million metric tons of American soybeans during the current season through January and has committed to buying 25 million tons annually for the next three years as part of a larger trade agreement with Beijing.
But in her statements after the markets closed, Rollins did not lay out any plans for a border re-opening.
“Every time she speaks about this, I guess we’re going to go through a panic,” said Cassie Fish, analyst and author of the Beef blog.
Fish said there was also some seasonal weakness in cash cattle prices, which is normal at the end of the summer grilling season, but that was less of a factor in today’s sell-off.
CME October live cattle futures LCV25 ended 2.300 cents lower at 229.975 cents per pound. Feeder cattle also fell, with the October contract FCV25 ending down 6.55 cents at 345.80 cents per pound.
The USDA said the wholesale choice boxed beef value fell $0.75 to $400.04 per hundredweight on Friday afternoon. The select cutout fell $1.51 to $378.44 per cwt.
October lean hog futures LHV25 ended 1.05 cents lower at 97.125 cents per pound.
