While the fed cattle futures market reacted and eventually the cash market might react to news of the New World screwworm’s arrival in the United States, nothing has changed with the quality or quantity of the meat supply, said a Texas A&M AgriLife Extension Service economist.
While the New World screwworm can infest any warm-blooded animal, including humans on occasion, the overall message is it does not affect meat.
“This is something to learn about, be aware of, but this isn’t anything to panic about,” said David Anderson, Ph.D., AgriLife Extension agricultural economist and professor in the Texas A&M College of Agriculture and Life Sciences Department of Agricultural Economics. “This isn’t a beef or pork or chicken consumption or meat problem at all. The animals can be treated and survive if it is caught early, and it doesn’t affect the meat whatsoever.”
Volatility in the futures market expected
The fed beef cattle futures market reacted immediately, Anderson said, dropping some and then going back up quite a bit, before dropping again.
“I think that’s what a lot of us expected, that once an announcement happened about screwworm being found in the United States, we’d see volatility in the future’s market – that’s just kind of how the futures market works,” he said.
A week after the announcement, futures for fed cattle are down to $229 per hundredweight compared to $250 per hundredweight in the futures market prior to the screwworm finding, Anderson said.
It is too early to tell the effect on the cash market, whether that is feedlot cattle headed to a packer or calves marketed at sale barns across the state, he said.
Beef herd still small,
prices still high
Fundamentally, though, Anderson said, nothing has really changed.
“We still have the smallest cow herd since 1961, we’re producing less beef than we did last year, and we continue to have very good consumer demand for beef,” he said. “We still have tighter supplies of beef, but we have more cattle on feed than we did a year ago.”
In the normal beef market, Anderson said, this time of year – “grilling season” – tends to see some increasing beef production relative to April and May or the springtime, but there’s still less than a year ago.
The retail beef market has already seen record prices, and this recent announcement shouldn’t affect near-term supplies of beef, Anderson said.
“Prices are going to stay high,” he said. “But typically, retail prices for beef tend to level off and decline after the middle of the year after we get past the grilling season rush. I don’t think this should have any effect on retail prices.”
What’s a producer to do?
Producers should focus management practices on herd protection — treat wounds as a preventative measure, monitor for signs of larvae, work with local veterinarians to address any New World screwworm infestations and report the case so that the U.S. Department of Agriculture can drop sterile flies in the area to mitigate the potential for additional cases.
“Practice good animal husbandry and lean on your local vet if you need to treat an infestation,” Anderson said. “These are going to be difficult times for our livestock and wildlife producers — it is an important pest from the past – but we’ve dealt with it before and we know how treat it and how to eradicate it.”
He reiterated producers should not just look at their cattle, but all animals, including horses and pets, as all warm-blooded mammals are susceptible.
“Pay a little closer attention to them all,” he said.
Stay up to date on the latest expertise offered by Texas A&M AgriLife at tx.ag/screwworm.
AgriLife Extension district reporters compiled the following summaries: Panhandle
Some rainfall, up to a half inch reported in some areas, was received across portions of the district, but other areas remained dry. Topsoil and subsoil moisture conditions ranged from very short to adequate across the district. Rain came at a critical time as wheat and oat fields approached final seed fill and maturity. The moisture also benefited recently planted corn, cotton and sorghum. Wheat harvest was underway in some areas but was delayed by the wet conditions. Forage choppers continued harvesting lateplanted small grains for silage, and some small grain acres were being cut and swathed for hay. Pasture and rangeland remained in very poor to fair condition overall, though rangelands showed some early improvement where rain fell. Supplemental feeding of cattle was slowing in areas that received moisture, and livestock conditions ranged from very poor to good across the district.
South Plains
Widespread rainfall events brought muchneeded moisture across the district with totals ranging from 0.5-4 inches depending on location. Multiple counties reported up to 2 inches of rainfall, but some areas remained extremely dry and received only isolated, insufficient showers. The precipitation was beneficial for recently planted cotton and gave the corn crop a significant boost as well. Producers worked to complete plantings between rain events. Cotton planting was still in full swing as deadlines approached. Peanut planting was nearing completion, with earlyplanted peanuts beginning to sprout. Sorghum was in good shape in areas that received adequate rain, with much of it already emerged. Pasture and rangeland conditions ranged from very poor to excellent across the district, improving where rains fell but still declining in drier pockets. Livestock conditions were variable, ranging from very poor to excellent, with cattle in areas with moisture showing noticeable improvement. Stock tanks benefited from the rain.
Rolling Plains
Scattered and highly variable rainfall moved through the district during the week, with amounts ranging from less than 1 inch to 5 inches in localized areas. The moisture improved topsoil conditions, though subsoil levels lagged in the drier western portions. Feed grains benefited from the timely rains, and cotton planting continued with producers taking advantage of a narrowing planting window. Sorghum fields looked good. Sudan grass planting increased following the rains, and producers were hopeful for additional moisture to help summer crops get off to a strong start. Wheat harvest was largely complete or winding down, with average yields reported in some areas. Some crops showed drought stress. Pasture and rangeland conditions varied widely, from very poor to excellent, with eastern portions of the district showing the best improvement. Livestock conditions ranged from very poor to excellent, with conditions notably better where grazing remained plentiful and hay production was active. Livestock supplementation continued in drier areas, but culling and early weaning of calves slowed.