LIVESTOCK-CME cattle futures dive after USDA sets timeline for Mexico import restart

By Karl Plume

CHICAGO, July 1 (Reuters) - Chicago Mercantile Exchange cattle futures fell on Tuesday, led by sharp declines in feeder cattle values after the U.S. Department of Agriculture announced a gradual restart of Mexican livestock imports following a prolonged closure over the damaging pest screwworm, analysts said.

The phased resumption of imports would help bolster supplies that have significantly tightened since the United States shut off shipments from south of the border on May 11.

"It's going to be a slow open over the next few months. They'll start to open up different ports of entry as long as they feel like they've got at least a handle on the screwworm issue. That put the pressure on things overall," said Dax Wedemeyer, analyst with Iowa-based U.S. Commodities.

Signs that beef prices may be topping out after climbing recently to levels not seen since the COVID-19 pandemic also weighed on futures.

The choice boxed beef cutout was up just 4 cents on Tuesday afternoon at $395.60 per cwt while the select cutout fell $4.04 to $380.06 per cwt, according to the U.S. Department of Agriculture.

CME August live cattle LCQ25 ended 3.125 cents lower at 210.750 cents per pound and August feeder cattle futures FCQ25 finished the day down 4.650 cents at 306.025 cents per pound.

CME lean hog futures were mostly lower on Tuesday, pressured by profit taking and long liquidation by funds as cash hog and pork markets were poised for a seasonal decline following recent gains.

The actively traded August hog contract LHQ25 ended down 0.550 cent at 106.950 cents per pound after sinking to its lowest point since June 4.

Cash pork values continued to soften on Tuesday, with sharp declines in prices for loins, bellies, butts and ribs. The USDA quoted Tuesday's pork carcass cutout at $112.30 per cwt, down $3.07 from Monday and $10.81 from a nearly three-year high posted last week.