Hassey Brooks

Cattle Markets Reacting To NWS Detections

markets
New World screwworm (NWS, Cochliomyia hominivorax) is a devastating pest. When NWS fly larvae (maggots) burrow into the flesh of a living animal, they cause serious, often deadly damage to the animal. NWS can infest livestock, pets, wildlife, occasionally birds, and in rare cases, people.
Courtesy of USDA/APHIS

It’s been interesting to watch live cattle and feeder cattle futures reaction to confirmation of a screwworm (NWS) case in Texas last week. A newborn calf in southern Texas, the first confirmed case in the U.S. since 1966.

Now, on the surface, one would expect a very negative market reaction, but so far, Trader is looking at further tightening of cattle numbers, lower beef production longer term, and a slower rebuilding of the cattle herd. Watching August live cattle, we should see technical resistance should it move higher up around that 248 level. August feeder cattle feeling resistance above 363.

Cattle Markets Reacting To NWS Detections

Audio Reporting by Mark Oppold for Southeast AgNet.