New World Screwworm found in the U.S.

Jun 12, 2026

By Josh Maples

The possible arrival of New World Screwworm (NWS) has added a layer of uncertainty to cattle markets for more than a year. Last week the question turned from if it will get here to how do we contain it? USDA confirmed two cases in calves in Zavala County, Texas. Two more cases were confirmed today (June 8), a calf in La Salle County near the original site, and a dog in Andrews County that reportedly had recently been in Mexico.

NWS is an animal health problem, not a food safety problem. The supply and demand fundamentals that have driven record prices in 2026 are still intact. Beef demand is still excellent, and cattle supplies are still historically tight. Within the broader cattle cycle story, the arrival of NWS is another headwind to expansion in affected areas as producers deal with higher production costs of identifying and treating NWS. This will be a significant cattle management challenge for producers. USDA has estimated that an outbreak in Texas could run near $1.8 billion. Containment means perimeter monitoring and movement controls in affected areas.

Cattle futures markets rose sharply Thursday after dropping in the days leading up to the announcement. Futures contracts traded lower today as volatility is likely to be a theme while the market absorbs new information. Markets likely have been pricing in the risk of NWS hitting the U.S. for some time. With the lingering question of when NWS will hit U.S. soil lifted, traders must now make sense of containment efforts, new cases, and the longer-run impacts of potentially slower expansion.

On the international trade front, Canada has temporarily restricted livestock from Texas, a largely symbolic step given that few Texas cattle move to Canada. The bigger question is the Mexican border, which has been closed to feeder cattle imports for most of the past 18 months. Whether NWS being confirmed here impacts if/when the border reopens is unclear. Even if reopened, feeder cattle imports would not likely be at pre-closure levels anytime soon.

Source : osu.edu

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