CME: USDA Confirms BSE Case
US - USDA confirmed another incidence of bovine spongiform encephalopathy (BSE) in dairy cow in the United States during a press conference this afternoon. The mature cow from central California was detected in a pre-rendering inspection. USDA describes the case as atypical because the cow most likely did not contract the disease by consuming infected feed, writes Mary Ledman, Sara Dorland, Sarina Sharp and Karen Endres on 24 April 2012.
25 April 2012
2 minute read
The first incidence of BSE in a dairy
cow was confirmed on Dec. 24, 2003. The
Canadian-born mature cow was found
in Washington. On the heels of USDA’s
announcement in 2003, Class III futures
closed 16¢ to 25¢ lower in the front three
months. Today’s Class III market impact
was muted. In fact, Class III futures settled
higher and continued to trade in positive
territory post USDA’s announcement.
Live
cattle futures did not bode so well. CME
live cattle futures closed limit down $3.00/
cwt. APR through DEC 2012 (see chart).
Another fallout from the 2003 BSE case
was the temporary closure of the Mexican
border to US dairy imports. Exports of
NDM to Mexico fell from over 10.0 million
lbs. per month in the fourth quarter of 2003
to less than 2.5 million lbs. in January
2004.
NDM exports to Mexico rebounded
by March 2004, totaling 23.4 million lbs.
USDA indicated it has begun to notify
trade partners of the discovery. USDA’s
Chief veterinary officer said that there
should be no adverse impact on US
beef exports.
“This detection in no way
affects the United States’ BSE status as
determined by the OIE,” he stressed. “The
US has in place all of the elements of a system that OIE has determined ensured
that beef and beef products are safe for
human consumption: a mammalian feed
ban, removal of specified risk materials,
and vigorous surveillance.”
CME spot Cheddar cheese trading
was active today as nine loads of cheese
traded. The spot barrel market gave
up yesterday’s 1.5¢ gain and closed at
$1.455/lb. The block market traded as
low as to $1.5150/lb. before trading three
times at $1.5225/lb. Two trades occurred
in the spot butter market that closed 1.25¢
lower at $1.40/lb. Class III futures closed
in positive territory while butter and NDM
futures were mostly lower.
TheCattleSite News Desk
