A new case of New World Screwworm has been detected in Mexico.
The parasitic worm was discovered last week in Mexico’s Tabasco State. However, the U.S. Department of Agriculture (USDA) says it will not restrict cattle imports from the country after recently lifting its November ban and reopening the border.
The re-opening came after USDA and Mexico established new protocols for assessing animal health before import. USDA says the new protocol will keep New World screwworms out of the U.S.
Despite the confidence from the USDA, the newly reported case was a major market mover for cattle, with fears of another border shutdown pushing feeder cattle futures at the Chicago Mercantile Exchange yesterday.
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Fewer cattle on feed suggest smaller slaughter numbers this winter, which could support strong prices if beef demand holds firm.
Dairy farmers are expected to face strong output and export gains, but lower prices and tighter margins will persist into next year.
With the latest detection just across the border, animal health officials on both sides are intensifying efforts to contain the outbreak before it spreads further north.
The USDA NASS report also confirms lower August placements.
