LIVESTOCK-Cattle futures up after FDA authorizes new screwworm treatment

By Heather Schlitz

CHICAGO, April 28 (Reuters) - U.S. cattle futures rose for a fourth straight session on Tuesday on renewed worries over the spread of New World Screwworm, after the U.S. Food and Drug Administration authorized the use of a topical powder that prevents and treats screwworm infestations, analysts said.

Screwworm cases have continued to rise in Mexico and hopes are waning among market players that the U.S.-Mexico border will re-open to cattle imports in the near-term.

"It's a psychological risk-on environment," said Rich Nelson, chief strategist at Allendale. "I'd certainly say the FDA authorization for the screwworm product is the driving force."

Further amplifying screwworm concerns, Florida Commissioner of Agriculture Wilton Simpson announced that all warm-blooded animals entering from Texas counties near the border with Mexico need to undergo additional veterinary screenings to check for screwworm.

Firm wholesale beef prices also underpinned cattle amid a seasonal spike in demand and constricted cattle supply.

Chicago Mercantile Exchange June live cattle LCM26 gained 4.55 cents to settle at 253.50 cents per pound. May feeder cattle FCK26 ended 4.275 cents higher to 371.725 cents per pound.

The choice beef cutout falling 66 cents to $388.90 per hundredweight and select cuts rose 18 cents to $388.78 per cwt, according to the U.S. Department of Agriculture on Tuesday afternoon.

Beef packer margins remained deep in the red, with packers estimated to lose $129.55 per head of cattle slaughtered on Tuesday, an improvement from $194.55 per head a week ago.

CME lean hog futures chopped up and down but settled slightly lower.

Benchmark June lean hogs LHM26 fell 0.20 cent to 101.975 cents per pound.