Live Cattle Hits Limit Down Move as Mad Cow Scare Hits Market
Apr 24, 2012
The cattle market hit limit down trading shortly after rumors started circulating that mad cow disease was found in central California. Reports are that it was a dairy cow and did not enter the food chain. This would be a different situation then what occurred in 2003 when a beef cow was found to have the disease, eventually pushing the live cattle market nearly 20% lower.
The live cattle market rallied off lock-limit trading, ending the day down 2.275 for June delivery. Follow us on Twitter @GrainTV to receive live updates as this situation develops
Below is a chart showing the futures market reaction to the USDA report on December 23rd, 2003 that meat from a cow had tested positive for mad cow.
Thomson Reuters reporting:
"USDA Chief Veterinary Officer - Carcass of cow was destroyed and no parts of the cow entered the human food chain."
"USDA's Clifford - USDA has begun the process of notifying OIE and trading partners of findings, should not affect exports."
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