The USDA announced it will reopen the border to Mexican cattle imports starting August 24, beginning at the Douglas, Arizona crossing, with New Mexico crossings to follow at an unspecified date. The suspension was imposed over New World screwworm, which has spread to 29 Mexican states and was recently detected in Texas and New Mexico.
Resumed feeder cattle imports from Mexico would add supply to the US feeder market, which is pressured by tight herds, so the reopening is bearish for feeder cattle prices over time. Continued screwworm spread in the US, however, raises the risk of renewed restrictions.
After 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.