LIVESTOCK-CME feeder cattle rises after Mexico finds screwworm in another cow

By Tom Polansek

Feb 18 (Reuters) - Chicago Mercantile Exchange feeder cattle futures finished higher on Tuesday as some traders worried that Washington would limit imports of cattle from Mexico over the discovery of another cow with the New World screwworm (NWS) pest.

The U.S. Department of Agriculture said after trading ended that it would not take additional action against Mexico over the latest screwworm case because the nations had already implemented new protocols to keep the pest out of the U.S.

CME March feeder cattle FCH25 climbed 3.375 cents to end at 269.725 cents per pound. April live cattle futures LCJ25 closed down 0.225 cent at 194.025 cents per pound and hit its lowest price since December 30.

Cattle futures had climbed in late 2024 and early 2025 after the USDA in November suspended imports of cattle from Mexico due to the discovery of NWS in a cow.

The halt tightened U.S. supplies that were already low because ranchers slashed their herds in recent years due to drought that reduced grazing lands. The U.S. typically imports more than a million cattle a year from Mexico.

"We continue to closely monitor cases of NWS in Mexico and Central America and will take additional action to protect U.S. livestock if the need arises," the USDA said in a statement on Tuesday.

Analysts expect a monthly USDA report on Friday will show that placements of cattle into U.S. feedlots in January rose 2.2% from the previous year, according to a Reuters poll.

In CME's lean hog market, recent strength in cash prices helped to support futures, said Rich Nelson, chief strategist for brokerage Allendale.

"The cash markets are still holding up better than expected," he said.

Most-active CME April lean hog futures LHJ25 rose 0.60 cent to end at 93.200 cents per pound and traded near a contract high set last week.