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Northern Mexico's cattle sector faces prolonged drought, with Chihuahua receiving far below normal rainfall over the last 28 months. Producers have liquidated cows, and feed is scarce and expensive.
The US border closure from late November to early February, prompted by New World screwworm in southern Mexico, further cut cattle shipments.
Lower Mexican feeder cattle supply to the US tightens feeder cattle availability and supports US feeder prices. Drought-driven herd liquidation in Mexico means reduced cattle flows for months ahead.
wlj.netDerrell S. Peel, Oklahoma State University Extension livestock marketing specialistMar 28, 2025After 122 past bullish disease events, FCATTLE moved a median +0.4% over 5 sessions (60% higher; middle half -1.0% to +1.6%), and +2.0% over 20.
After 148 past bullish disease events, LCATTLE moved a median +0.4% over 5 sessions (62% higher; middle half -0.5% to +1.2%), and +1.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
