rumours Of This Mad Cow Announcement Were Clearly In The Market Hours Ago

Scott ShelladyScott Shellady

Photo: YouTube

The USDA confirmed Tuesday that a cow infected with mad cow disease in California has been found.The carcass of the infected cow is going to be destroyed. And since the cow was up for slaughter for human consumption, it poses no risk to food supply, the USDA said in a statement.

Still, we were wondering how this news might affect the cattle market so we contacted none other than Scott Shellady, the commodities trader at the Chicago Board of Trade who wears the famous cow-print jacket. 

“It has a huge impact because people have a huge imagination,” Shellady told Business Insider during a telephone interview.  “It’s a big impact because the unknown is scary.” 

The commodities trader explained that just one infected cow is enough to spook the market because people will want to know how that animal got infected and if any other livestock is infected.

However, if it’s just one cow and it’s destroyed and we moved on then the market could get back to normal in three to four weeks, he estimated.

Even before the mad cow disease was confirmed by the USDA, Shellady said the cattle market was already volatile today because of the mad cow rumours.

“It absolutely rocked the cattle market today and spilled to grain.”

He’s right.  Check out the chart for Live Cattle and Feed Cattle below.

Live Cattle

Photo: CNBC data

 

 

Feed Cattle

Photo: CNBC data

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