Cattle futures roared higher Thursday, despite confirmation of New World screwworm in the United States. Apparently, the eventuality was priced into the market and removing the uncertainty added buyer confidence.
Feeder Cattle futures were an average of $10.68 higher, limit up in all but three contracts. Live Cattle futures were an average of $3.85 higher .
Negotiated cash fed cattle trade ranged from limited on moderate demand in Nebraska to mostly inactive on moderate demand elsewhere through Thursday afternoon, according to the Agricultural Marketing Service. Although too few transactions to trend, there were some FOB live trades at $255-$257/cwt.
Based on established trade for the week, FOB live prices are mainly $256, which is $1 lower in the Southern Plains and Nebraska and steady to $2 lower in the western Corn Belt. Dressed delivered prices are mainly $405, which is mostly steady.
Based on independent reports early today, prices were gaining.
Choice boxed beef cutout value was $3.20 lower Thursday afternoon at $392.66/cwt. Select was $1.39 lower at $383.04.
Grain and Soybean futures stepped lower Thursday, pressured by positive weather and lower Crude Oil.
Corn futures closed mostly 7¢ to 9¢ lower. Soybean futures closed 18¢ to 27¢ lower. Kansas City HRW Wheat futures were 3¢ to 5¢ lower.
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Major U.S. financial indices closed mixed Thursday, as investors rotated out of tech stocks.
The Dow Jones Industrial Average closed 874 points higher. The S&P 500 closed 30 points higher. The NASDAQ was down 23 points.
West Texas Intermediate Crude Oil futures (CME) were $1.96 to $2.98 lower through the front six contracts.
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As reported recently, the Animal and Plant Health Inspection Service (APHIS) confirmed a case of New World screwworm (NWS) on a cattle operation near La Pryor, Texas, about 50 miles from the Mexico border. Samples were taken from a 3-week-old calf with larvae present in an umbilical lesion and sent to the National Veterinary Services Laboratories in Ames, IA, for confirmatory testing, according to the Kansas Livestock Association (KLA). Currently, there are no other cases.
The infected operation has been quarantined, and a 20 km/12.4 mi. infested zone has been established around the location for movement control and surveillance, according to the KLA. Stop movement orders will not impact cattle movements or operations outside this zone. APHIS has expedited the targeted release of sterile NWS flies by immediately deploying ground-release chambers in the area, in addition to the 4 million sterile flies per week already being released aerially in the region. Trapping efforts also are being increased along the border and just outside the dispersal area.
This is the first detection of New World screwworm in Texas since northward progression from Central America was observed in 2023. The Texas Animal Health Commission is working closely with USDA and other state officials in a joint incident response.
“The Texas Animal Health Commission has been actively preparing for a resurgence of New World screwworm for over two years,” says Dr. Bud Dinges, Texas Animal Health Commission state veterinarian and executive director. “We are putting these preparations into action, and we encourage all animal owners and caretakers to continue to remain vigilant for the presence of larvae in animal wounds and immediately report any suspicions.”
USDA emphasizes the U.S. food supply is safe. USDA’s Food Safety and Inspection Service (FSIS) ensures that the nation’s commercial supply of meat, poultry, and egg products is safe and properly labeled. NWS do not infest meat, fruits, vegetables, or other food sources.