A University of Arkansas economist says feeder cattle futures were highly volatile after the screwworm confirmation in Texas, with August contracts trading between $335 and $353. The market initially fell but then closed limit up.
The economist expects little change in retail beef prices, though local Texas and New Mexico cattle markets may be affected.
Nearby cattle markets face the most immediate price effects from movement restrictions and fear of spread. Retail beef prices are less affected, so the impact on feeder cattle futures is mainly a short-term volatility story.
After 29 past neutral disease events, Feeder Cattle moved a median +0.6% over 5 sessions (62% higher; middle half -1.5% to +2.2%), and +1.0% over 20.
After 69 past neutral disease events, Live Cattle moved a median -0.1% over 5 sessions (42% higher; middle half -0.8% to +0.6%), and +0.9% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Economist commentary on the volatile feeder futures and limit-up close after the screwworm confirmation supports the same price action.