The Screwworm Is Back

Feeder cattle futures took a sharp turn this month, as markets reacted to a major animal health development — and drought concerns continue to weigh on producers. In this episode, host Elijah Griles breaks down the New World Screwworm detection in Texas, what it means for markets and trade, and the latest Cattle on Feed report. Plus, Elijah shares an update on Virginia drought conditions and local cash markets.

In this episode:

• Feeder cattle futures have been volatile — August at $349/cwt and September at $346/cwt, both down roughly 5% month-over-month before rebounding on news of a New World Screwworm detection
• USDA confirmed New World Screwworm in a Texas calf, triggering a 12-mile infestation zone and increased surveillance along with continued sterile fly dispersal
• The May Cattle on Feed report showed 11.6 million head on feed, up 2% year-over-year — the first increase in 18 months, with placements up 6% and marketings down 10%
• Drought is impacting more than 70% of the U.S. cattle herd, raising questions about expansion and increasing feed, hay, and water costs
• Beef demand remains strong despite record prices — retail beef averaged $9.64/lb. in April, while demand is up 7% year-over-year and 39% over the past seven years
• Virginia drought conditions persist: 25% of the state is in extreme drought and 59% in severe drought, with limited relief in the near-term climate outlook
• Virginia feeder calf prices softened slightly — the six-market average came in at $461/cwt, down 1.7% from last month
• Market outlook hinges on competing pressures: tighter supplies vs. drought-driven early sales and reduced buyer demand

Resources mentioned:

• USDA APHIS updates on New World Screwworm
• USDA Cattle on Feed Report (May 2026)
• Livestock Market Information Center (LMIC) beef demand data
• U.S. Drought Monitor
• NOAA Climate Prediction Center outlook

Event mention:

Virginia Beef Cattle University — July 8–10

Register at: vabeefcattleu.com

CattlePulse is produced by Virginia Farm Bureau. Have a question or topic suggestion? Email Elijah at elijah.griles@vafb.com.