U.S. livestock: Feeder cattle hit record high on tight supply, strong cash prices
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Photo: Lisa Guenther
Chicago | Reuters – Chicago Mercantile Exchange feeder cattle futures scaled to a record high on Wednesday on strong cash market prices and tight supplies as the U.S. border remains closed to Mexican imports due to the northward spread of the parasitic pest screwworm.
Live cattle followed feeders higher, supported by a rebound in wholesale beef prices and as the stock market’s recent climb to record highs fueled optimism that consumer demand for beef could remain resilient despite high prices.
“The yearling and spring calf sales have started, and it’s good volume and very good returns and very good prices,” said Mike Zuzolo, president of Global Commodity Analytics.
The strong cash feeder sales reinforced market support from the tight supply of feeder cattle currently available.
“What pushed us over the edge was the updated New World screwworm incident that happened a couple of days ago,” he said.
The U.S. border has remained mostly closed to Mexican cattle imports since May. Mexico’s agriculture ministry on Monday reported the latest case of screwworm in Nuevo Leon state, which borders the United States.
Benchmark CME November feeder cattle FCX25 ended 4.575 cents higher at 368.825 cents per pound. The lightly traded spot October contract FCV25 peaked at 370.200 cents per pound, the highest level on record for a front-month FCc1 contract.
CME December live cattle LCZ25 rose 1.150 cents to end at 238.825 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 continued to firm after hitting a two-month low late last week, rising 19 cents at midweek to $366.16 per hundredweight, according to U.S. Department of Agriculture data. The select cutout, however, was down $3.64 at $345.24 per cwt.
CME lean hog futures rebounded from earlier multi-week lows and finished near unchanged, with December lean hogs LHZ25 closing down 0.075 cent at 86.100 cents per pound.
