By Andi Anderson
The U.S. cattle market showed resilience on August 25 as traders weighed both animal health concerns and new feedlot data. Earlier this month, a human case of New World Screwworm (NWS) was confirmed in Maryland. The case was linked to travel from Central America, and no livestock cases have been identified in the U.S.
Despite this, the market reacted cautiously. The October CME© live cattle futures contract closed down $0.90 per cwt, while fall feeder cattle futures were off by less than $1.50 per cwt. Both contracts tested lower levels during the day but settled with smaller decreases by afternoon.
The modest decline reflected the limited impact of the announcement. Because this was a human case and not related to livestock, there are no expected effects on cattle supply. Demand disruption also seems unlikely at this stage. Still, the event served as a reminder of the threat posed by NWS, and officials continue monitoring while sterile male flies are released in Mexico as part of control efforts.
At the same time, the market processed USDA’s August Cattle-on-Feed report. As of August 1, on-feed inventory was reported at 11.1 million head, slightly above pre-report expectations. Marketings were 94.3% of last year, just above estimates.
July placements fell by 7.2% compared with July 2024, though the drop was smaller than predicted. Placements have been hard to forecast since Mexican feeder cattle imports were halted late last year. From May to July, placements declined by 7.3%, and year-to-date they are down 5.2%.
While the futures market dipped Monday, the response was measured. Both the NWS news and the feedlot report added pressure, but prices remained steady compared to past volatility. This reflects the strong fundamentals continuing to support the U.S. cattle market.
Photo Credit: istock-123ducu
Categories: Ohio, Livestock, Beef Cattle, Dairy Cattle