LUBBOCK, TX – Feeder cattle imports from Mexico into the U.S. ground to a halt last month due to the threat of the New World Screwworm. This move, while praised by the industry, is also intensifying pressure on already tight domestic supplies. According to USDA data, only 230,638 head crossed the border this year, compared to 807,393 at this time in 2024.
The ongoing closure of the U.S.-Mexico border to feeder cattle imports — previously a key pipeline for Southern Plains feedlots — is amplifying price impacts across the beef sector. Live cattle futures reached a record high of $236.50 per hundredweight (cwt) on Wednesday, while feeder cattle contracts tapped a record high of $345.35 cwt on the same day. These all-time highs are a result of strong cash cattle and beef market fundamentals, alongside historically tight US cattle supplies. The cattle herd has shrunk to its lowest level in over 70 years, following years of drought and increased feeding costs.
Economists note that this supply disruption, combined with a historically low U.S. herd size, is driving up prices throughout the system. At the retail level, USDA reports the average price for all fresh beef reached $7.99 per pound, marking a new high.
The longer the border remains closed, analysts warn, the more significant the inflationary pressure on both wholesale and consumer beef prices.