The initial reaction in the ag marketplace to the first detection of New World Screwworm in a calf in south Texas in early June was a bit surprising to many market analysts. Generally, a negative headline can send the markets to the downside in a dramatic way, at least until the situation stabilizes and further information is digested. While the detection of NWS in the United States did send the cattle markets lower initially, there was almost an immediate bounce back for the prices and not a lot of additional movement to the downside.
Joe Camp of Commstock Investments tells the Iowa Agribusiness Radio Network that the negative price action in the cattle markets may have already been priced in with NWS slowly moving northwards through Mexico in recent months.
Following the detection of the first case of NWS in Texas, additional cases have been found throughout the state and in other states along the southern border. Camp says that the ideal situation now is for added cases of NWS to become background noise in the minds of traders and consumers.
Camp says that now that NWS is in the United States, it adds another constraint to the cattle supply.
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