Updated

Updated · Farm Progress · Aug 20

Mexico Reopens Border to Cattle Imports on Aug. 24 as Feed Costs Squeeze Producers

Updated

Updated · Farm Progress · Aug 20

Mexico Reopens Border to Cattle Imports on Aug. 24 as Feed Costs Squeeze Producers

1 articles · Updated · Farm Progress · Aug 20

Aug. 24 will bring the resumption of Mexican cattle imports, adding a new supply variable to U.S. cash and futures markets already under heavy strain.
Feed costs are rising quickly—corn futures and stronger basis levels are hurting feedlots—while packers still struggle to sell beef at prices that support higher cattle bids.
Tyson's plant closure last week jolted the market, though Fort Morgan workers have since approved a contract and slaughter there is set to resume in early September, restoring capacity.
Producers still may sell calves at workable prices, but far below recent highs, and analysts say risk remains elevated across the cattle complex.
The recommended focus now is preserving capital and equity through risk management, even if many operators cannot currently lock in a profit.

Sources

Could the unexpected return of Mexican cattle imports be the final blow to struggling feedlots facing record-high costs?

As major meatpackers shutter plants and bleed profits, who really pays the price for America's shrinking cattle herd?

Will a phased border reopening and a parasitic fly outbreak trigger a massive supply shock for American beef?

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