Cattle futures on the Chicago Mercantile Exchange (CME) pulled back on Friday as traders locked in profits following a strong rally that pushed prices to their highest levels since October. According to Reuters, the retreat came after several sessions of gains driven by tightening supply expectations in the U.S. beef market.
Recent price strength has been underpinned by concerns that Washington will continue restricting imports of Mexican cattle due to the spread of New World screwworm in Mexico. The U.S. Department of Agriculture (USDA) has largely blocked Mexican livestock imports since May in an effort to prevent the northward spread of the flesh-eating parasite. Ongoing detections of screwworm have increased skepticism among traders that the border will reopen anytime soon, keeping U.S. cattle supplies constrained.
These supply concerns are compounded by historically tight domestic conditions. U.S. ranchers have reduced herd sizes in recent years, shrinking the national cattle herd to its smallest level in decades. As a result, any prolonged disruption to imports could further tighten availability and support higher prices over the longer term.
Market analysts at consultancy StoneX noted that sentiment around a potential reopening of the U.S.–Mexico cattle border has deteriorated in recent weeks. “It’s safe to say that those odds of reopening have trended downward in the past two to three weeks as cases appear to be advancing,” the firm said in a market note.
Despite the supportive fundamentals, futures prices eased as traders took profits. CME March feeder cattle futures fell 3.025 cents to settle at 354.700 cents per pound, while February live cattle futures declined 1.550 cents to close at 233.725 cents per pound.
The USDA declined to comment directly on whether cattle imports from Mexico could resume this month, reiterating instead that it remains focused on stopping the spread of screwworm and strengthening strategic planning within the U.S. livestock sector. The agency noted that isolated detections outside known affected areas in Mexico are not unexpected.
Meanwhile, USDA slaughter data highlighted the tight supply environment. Meatpackers processed an estimated 86,000 cattle on Friday, sharply lower than the 116,000 head slaughtered a week earlier and below the 105,986 cattle processed on the same day last year. Hog slaughter was estimated at 484,000 head, up from the previous week and higher than year-ago levels.
In the lean hog market, CME February futures also moved lower, slipping 0.575 cent to close at 85.300 cents per pound.
Beyond livestock fundamentals, traders were also watching developments in broader markets, with attention focused on an upcoming U.S. Supreme Court ruling concerning the legality of President Donald Trump’s sweeping global tariffs—a decision that could have wider implications for trade and commodity markets.
