Cattle Futures Slide as Cash Weakens and Mexican Imports Resume at U.S. Border
CME cattle futures fell Tuesday as weaker cash trade, renewed Mexican imports and tariff uncertainty pressured livestock markets despite rising beef prices.
U.S. cattle futures fell Tuesday, August 25, as a weaker fed cattle cash market, long liquidation and the return of Mexican livestock imports pressured Chicago trade, according to Reuters. The move matters for U.S. cattle producers because additional feeder cattle supplies and uncertainty over federal beef tariff policy are emerging just as wholesale beef prices remain elevated. CME October live cattle settled 2.65 cents lower at 210.95 cents per pound, while September feeder cattle dropped 4.95 cents to 319.275 cents per pound.
Border Reopening Adds Pressure While Beef Prices Keep Rising
The bearish tone strengthened after cattle imports from Mexico resumed through Douglas, Arizona. About 700 feeder cattle entered the United States Monday, the first day of the border reopening, according to USDA figures cited by Reuters. The border had been closed to Mexican cattle for more than a year because of concerns surrounding the flesh-eating screwworm parasite. USDA also plans to reopen two additional New Mexico ports, one in 30 days and another in 60 days, potentially restoring another channel of livestock supply.
The reopening is drawing resistance from some cattle organizations and state officials concerned about animal-health risks as screwworm remains a threat in northern Mexico. At the same time, President Donald Trump's plan to temporarily ease U.S. beef tariffs in an effort to reduce consumer prices has added uncertainty over future supplies. No additional details on the tariff changes had been announced Tuesday, Reuters reported, leaving cattle producers and market participants assessing how trade policy could affect domestic commodity prices and cattle margins.
Despite weaker futures, wholesale beef prices continued to climb. USDA priced Choice boxed beef at $388.12 per cwt, up $2.43, while Select increased $5.46 to $370.48 per cwt. That divergence underscores the tension across the beef supply chain: cattle futures are absorbing expectations for additional supply while wholesale meat values remain strong. USDA's latest cattle-on-feed report also pointed to a sizable fed-cattle supply, adding pressure to the cash market and reinforcing concerns over near-term livestock prices.
