Record-High U.S. Cattle Futures Amid Controversial Import Ban
U.S. cattle futures hit record highs as Washington suspends cattle imports from Mexico due to a parasitic threat. The screwworm issue could increase U.S. beef prices amidst already tight supplies. Discussions between U.S. and Mexican authorities aim to address the pest problem and resume imports.
On Monday, U.S. cattle futures set new records after the suspension of cattle imports from Mexico, prompted by a flesh-eating parasite. Mexican President Claudia Sheinbaum condemned the halt as unfair.
The New World screwworm, eradicated in the U.S. since 1966, poses a re-introduction risk, warned the U.S. agriculture department. The import ban could further escalate U.S. beef prices amid an already reduced cattle supply.
Dan Norcini, a livestock analyst, described the market as being 'on fire' after all cattle futures contracts in Chicago hit lifetime highs. Despite Mexico's assurances, the U.S. extended the import suspension, citing the parasite's spread. The decision sparked concerns of economic harm for U.S. ranchers and potential supply chain disruptions.
(With inputs from agencies.)
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