Despite efforts in Mexico to control the northern spread of New World Screwworm, the pest keeps working ever closer to the US border.
GROWING FRUSTRATION
The Texan Tuesday published an article quoting Texas Agriculture Commissioner Sid Miller in testimony before the Texas House Agriculture and Livestock Committee Monday saying the current rate of sterile fly production was only 20% of what was needed.
Narciso Perez, chief of cattle feeding operations at Zia Agricultural Consulting said in an email that frustration is mounting at the USDA because of continued non-compliance by the Mexican government, particularly regarding a lack of sufficient surveillance and biosecurity enforcement.
Three shiploads of cattle from Nicaragua—a country confirmed to be infested with screwworm—are enroute to Mazatlán, Perez said. This represents a significant breach of protocol and a direct threat to animal health in North America.
When Rollins authorized the border reopening, it was considered a political misstep, as it was done in direct contradiction to USDA guidance, he said. Within one week, the USDA’s warnings were validated when a screw worm fly was detected 200 miles closer to the US border than any previous finding.
“I remain actively engaged with the USDA on this program in real time,” Perez said. “The reality is: Mexico cannot be trusted to self-regulate on this matter, and until these serious deficiencies are addressed, the border must remain closed.”
BEEF MARKET OUTLOOK
- Beef prices remain historically high and continue to trend upward.
- Consumer demand remains surprisingly strong—helped, in part, by public discourse and media attention (“the more it’s talked about, the more it sells”).
- However, we’ve passed the July 4 seasonal peak, and demand is beginning to show typical summer tapering.
- Packers are running reduced kills due to:
- Labor shortages
- High labor costs
- Feedlots resisting lower bids, driven by the high cost of replacing calves and feeders
- Tight cattle supplies overall
Market fundamentals remain strong, but risks are mounting, and “biological risk and regulatory failures in Mexico pose a serious and ongoing threat to the integrity of the US herd,” he said.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $230.92 per cwt to $241.02, compared with last week’s range of $229.17 to $241.74 per cwt. FOB dressed steers, and heifers went for $361.69 per cwt to $369.83, compared with $350.68 to $378.64.
The USDA choice cutout Tuesday was up $0.43 per cwt at $372.50 while select was off $2.11 at $347.94. The choice/select spread widened to $24.56 from $22.02 with 101 loads of fabricated product and 35 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $419.30 per cwt, and 50% beef was $215.87.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.45 to $1.60 a bushel over the Sep corn contract, which settled at $3.99 1/4, down $0.04 1/2.
The CME Feeder Cattle Index for the seven days ended Monday was $326.83 per cwt, up $1.03. This compares with Tuesday’s Aug contract settlement of $328.27, up $0.67.