Screwworm Fears Fade as Cash Cattle Fuels Rally 6 4 26 Cattle Chatter

The cattle market reacted swiftly to confirmation of New World screwworm in a three-week-old calf, but the initial selloff was short-lived. Futures traded lower for only a few minutes following the opening bell before reversing course, with feeder cattle eventually closing the session limit up. On this week's Cattle Chatter, Brad Kooima of Kooima Kooima Varilek discusses one of the fastest market selloffs and recoveries in recent memory, noting that much of the fear surrounding a screwworm confirmation had already been priced into the market. He also examines what an export containment and quarantine strategy could look like for Texas moving forward. From a consumer standpoint, the reaction has been far different than past livestock-related events such as swine flu or the "pink slime" controversy. Kooima believes today's consumers have greater access to information and fact-checking through the internet, helping reduce some of the uncertainty and fear that accompanied previous industry challenges. Supporting the market was another strong week in the cash cattle trade, which provided the momentum needed to push futures higher and helped offset concerns surrounding the screwworm news.