Shares of major US meat processing companies collectively rose on Monday as the market anticipated that the US would resume importing live beef from Mexico. Earlier, in order to prevent the spread of the deadly parasite Helicobacter fly in the New World, the United States imposed an import ban on Mexican live cows for more than a year. The US Department of Agriculture announced on Friday that it will reopen the import port for live cattle on the U.S.-Mexico border in stages starting August 24. This policy adjustment is aimed at alleviating the shortage of cattle in the US caused by the ongoing drought and the double squeeze of import bans. Boosted by this news, the market quickly absorbed expectations of a recovery in supply. The long positions accumulated earlier due to supply shortages were centrally closed, and the price of live cow futures fell in response. Relaxed supply-side expectations directly benefit downstream meat processors. In the past year, due to the fact that the size of domestic cattle herds in the US fell to its lowest level in 75 years, and import channels for Mexican live beef were cut off, meat processing companies had to pay high premiums to compete for scarce slaughter ingredients, and profit margins were severely squeezed. As of Monday morning EST, the meat processing sector was flourishing across the board. Among them, JBS shares rose the highest, reaching 6.8%; Tyson Foods shares surged 5.8%; Hormel Foods rose 1.9%; Pilgrim's Pride rose 1.5%; and Smithfield Foods rose 1%.

Shares of major US meat processing companies collectively rose on Monday as the market anticipated that the US would resume importing live beef from Mexico. Earlier, in order to prevent the spread of the deadly parasite Helicobacter fly in the New World, the United States imposed an import ban on Mexican live cows for more than a year. The US Department of Agriculture announced on Friday that it will reopen the import port for live cattle on the U.S.-Mexico border in stages starting August 24. This policy adjustment is aimed at alleviating the shortage of cattle in the US caused by the ongoing drought and the double squeeze of import bans. Boosted by this news, the market quickly absorbed expectations of a recovery in supply. The long positions accumulated earlier due to supply shortages were centrally closed, and the price of live cow futures fell in response. Relaxed supply-side expectations directly benefit downstream meat processors. In the past year, due to the fact that the size of domestic cattle herds in the US fell to its lowest level in 75 years, and import channels for Mexican live beef were cut off, meat processing companies had to pay high premiums to compete for scarce slaughter ingredients, and profit margins were severely squeezed. As of Monday morning EST, the meat processing sector was flourishing across the board. Among them, JBS shares rose the highest, reaching 6.8%; Tyson Foods shares surged 5.8%; Hormel Foods rose 1.9%; Pilgrim's Pride rose 1.5%; and Smithfield Foods rose 1%.