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Canada has temporarily banned cattle and horse imports from Texas after U.S. authorities confirmed New World screwworm in calves near the Mexico border. The Canadian Food Inspection Agency will refuse livestock that were in Texas within 21 days of entry until further notice.
Trade restrictions and the threat of a parasite returning to U.S. herds could tighten movement of feeder and live cattle and add risk premium to the cattle complex, with price effects depending on how far containment spreads.
swikblog.comSangeeta DubeyJan 1, 2018After 46 past bearish disease events, Feeder Cattle moved a median +0.3% over 5 sessions (54% higher; middle half -2.3% to +1.6%), and +1.8% over 20.
After 70 past bearish disease events, Live Cattle moved a median +0.0% over 5 sessions (51% higher; middle half -1.7% to +1.0%), and +0.4% 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.
