New screwworm cases in Mexico pressure US beef supply

Mexico reported nearly 700 New World screwworm cases this month, with 40% in the week ending April 2, according to the USDA. The spread near the border is accelerating, likely extending the suspension of live cattle imports to the United States. Texas faces increased risks of the parasite reaching its herds.

The US Department of Agriculture (USDA) reported nearly 700 New World screwworm cases in Mexico this month, with detections accelerating. The United States has largely suspended live cattle imports from Mexico since last fall to prevent spread. "The acceleration in propagation limits visibility on when imports might resume," said Brian Vaccaro, managing director at Raymond James.

Mexico historically shipped about one million animals annually to the United States, supporting beef supply amid shrinking US herds. The suspension has strained the US supply chain, prompting recent plant closures by Tyson Foods, Cargill, and JBS. US consumer beef prices remain near historical highs.

Recent detections in Nuevo León, about 100 kilometers from the border, put Texas "directly in the line of fire," Texas Agriculture Commissioner Sid Miller said in a statement. Lubbock Feeders, a Texas feedlot reliant on Mexican inventory, announced closure this year. JBS USA executive Wesley Filho called resuming trade the most important short-term factor for beef supply and demand.

In Mexico, the USDA forecasts a 5% rise in cattle slaughter this year and record beef production. President Claudia Sheinbaum announced a 700 million pesos investment in beef production last fall.

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