LIVESTOCK-CME cattle set contract highs after US blocks Mexican cattle

By Tom Polansek

CHICAGO, July 10 (Reuters) - Chicago Mercantile Exchange live cattle and feeder cattle futures hit contract highs on Thursday after the U.S. Department of Agriculture again halted livestock imports from Mexico over the spread of the devastating New World screwworm pest.

Mexico reported a new case of screwworm about 370 miles south of the U.S. border, the USDA said in a statement late on Wednesday. The agency ordered the closure of livestock trade through southern ports of entry to keep out the flesh-eating parasite, just days after USDA allowed imports to resume at a port of entry in Arizona.

"It seems like it's definitely advancing northward in a hurry, which is very concerning," said Ross Baldwin, hedge strategist for AgMarket.Net.

The U.S. typically imports over a million cattle from Mexico annually. The halt will contribute to rising beef prices by tightening cattle supplies, which dwindled after drought forced ranchers to slash herds, analysts said.

Baldwin said he did not expect USDA to reopen the border this year and worried it is only a matter of time before screwworm reaches the United States.

CME August live cattle futures LCQ25 reached a contract high of 222.500 cents per pound before pulling back to close down 0.55 cent at 219.225 cents per pound.

August feeder cattle FCQ25 ended up 0.8 cent at 321.275 cents per pound and earlier set a contract high at 326.875 cents. That was a record for a front-month contract FCc1 on a continuation chart.

Futures pared gains due to technical selling and profit taking, traders said.

U.S. wholesale boxed beef prices fell for a second day. Choice cuts slid $1.79 to $384.66 per hundredweight (cwt), according to USDA data.

Analysts said U.S. President Donald Trump's plan for a 50% tariff on goods from Brazil, set to take effect August 1, will likely raise prices for the beef used in American hamburgers.

In the pork market, CME August lean hogs LHQ25 ended down 1 cent at 106.225 cents per pound.