The “mad cow” disease scare that originated out of California has finally subsided after cattle futures fell to a nine-month low. After realizing the incident was isolated to “one” animal, countries are continuing the importation of American beef.
A spokesperson from the US Department of Agriculture stated yesterday that no beef from the affected animal entered the food chain. That was enough explanation for Canada, Japan, Mexico, and South Korea to continue buying US beef supplies and, after all, the disease was confined to a “dairy” cow.
Barb Levy, Chief Director of the Futures Division at Futures & Options Xecution in Chicago, stated today regarding the current cattle futures situation, “Cattle futures rebounded today as yesterday’s decline off the idea that a case of mad cow disease found in California would halt meat purchases from Canada, Mexico, Japan and South Korea. These reports appear to be unfounded…”
We took profit today on our feeder cattle futures position after this market failed with followthrough to the downside once being down LIMIT yesterday. The trend is still very much down, but let’s await more of a bounce higher before resetting with another short position