06/06/25 Afternoon CommStock Report- Screwworm Update

Livestock producers are facing ongoing challenges with disease prevention and the triple threat posed for poultry, hogs, and cattle from avian influenza, porcine reproductive and respiratory syndrome (PRRS), and the New World Screwworm. The latest outbreaks have been felt by meat prices responding to a poultry import ban against Brazil, lowered hog production estimates for the U.S., and the resumed suspension of cattle imports from Mexico.   Reacting most dramatically to the screwworm headlines have been feeder cattle futures, which were almost limit lower at one point last month when traders were picking up on rumors about the pest being discovered on U.S. soil (Missouri). Cattle futures rebounded quickly following a statement from the USDA clarifying that there have been no confirmed or suspected screwworm cases identified in the country. USDA has estimated that more than 60 percent of U.S. cattle imports come from Mexico, amounting to about 1.25 million head per year in 2023 and 2024.   The screwworm is a fly larvae that digs into an animal’s flesh and causes deadly wounds. A case of screwworm infection in a southern Mexico cattle herd led to the USDA closing the border to livestock imports in November. After a few…