USDA: Phased Reopening for Livestock in Southern U.S. Ports

USDA will begin reopening the southern border to cattle imports from Mexico next month after determining conditions have improved in the fight against New World screwworm. The Agriculture Department says the Douglas, Arizona, port of entry will reopen August 24 for cattle from Mexico's Sonora state. Additional ports at Santa Teresa and Columbus, New Mexico, could reopen later if Mexico continues meeting animal health requirements. Every animal entering the U.S. will undergo a full USDA inspection for signs of New World screwworm. Agriculture Secretary Brooke Rollins says, "The closure of the Southern ports of entry for the last year has been a tough but necessary action to control the spread of NWS in Mexico and protect the American livestock industry." USDA says reopening plans remain flexible and could be paused if the screwworm risk increases.

Cattle Producer Groups React to USDA Announcement

Cattle organizations are supporting USDA's decision to begin a phased reopening of the southern border to live cattle imports from Mexico after progress in controlling New World Screwworm. The Douglas, Arizona, port of entry is scheduled to reopen in 30 days, with ports at Columbus and Santa Teresa, New Mexico, expected to follow after additional biosecurity reviews. National Cattlemen's Beef Association CEO Colin Woodall says USDA's aggressive response has "put us in a strong position to begin safely and gradually reopening our southern border to cattle shipments." The Texas & Southwestern Cattle Raisers Association also praised the phased approach, saying the temporary closure gave officials time to strengthen surveillance, expand sterile fly production, and improve response protocols. Both groups emphasized they will continue supporting strong safeguards to protect the U.S. cattle herd while allowing normal cattle commerce to resume.

NCGA Applauds USMCA Negotiations

The National Corn Growers Association is encouraged by progress in talks to renew the U.S.-Mexico-Canada Agreement following last week's negotiations in Mexico City. NCGA says the USMCA remains vital to American agriculture, supporting strong export demand and providing certainty for farmers, grain handlers, and rural communities. NCGA President Jed Bower says, "American growers, particularly corn farmers, have benefited immensely." He notes the agreement generates demand for 1.8 billion bushels of U.S. corn and contributes an estimated $20 billion to the U.S. economy. The organization is urging the United States, Mexico, and Canada to continue negotiations and resolve remaining issues quickly to preserve the long-term benefits of the trade agreement. USMCA is currently under review by the three countries as officials work toward updating the agreement. The U.S. elected not to renew the agreement for another 16 years, instead opting for yearly reviews over the next ten years.

Soybean Growers Appreciate Ag Input Exemptions

The American Soybean Association is welcoming new tariff exemptions for some key agricultural inputs under the Trump administration's latest Section 301 trade action but says more relief is needed. ASA says exemptions for certain seed, fertilizer, crop protection products, and machinery parts will help farmers manage production costs. ASA President Scott Metzger says, "We appreciate that the administration recognized the importance of exempting some of these critical inputs," but adds that other essential products still face new tariffs that could increase farming costs. The soybean group is urging the administration to expand exemptions for additional agricultural inputs while pursuing new trade agreements that create export opportunities for U.S. farmers. ASA also continues to support exempting countries that have free trade agreements with the United States and are meeting their trade commitments from any future tariff actions.

USDA: Cattle Herd Expands Slightly

U.S. cattle on feed totaled 11.4 million head on July 1, up two percent from a year ago, according to USDA's latest Cattle on Feed report. Feedlots placed 1.4 million head during June, down three percent from last year, while marketings also fell by three percent to 1.66 million head, the lowest June total since records began in 1996. Despite the larger inventory, analysts say the report was less bearish than the headline suggests because cattle are remaining in feedyards longer rather than entering the system in greater numbers. One market analyst says, "The two percent rise in cattle on feed reflects cattle staying in feedyards longer, not more cattle entering the system." The report suggests feedlots have ample market-ready cattle in the short term, but supplies of replacement cattle continue to tighten.

USDA Union Rallies Against Relocation

Current and former USDA officials are urging the Trump administration to reconsider plans to relocate more than 2,500 employees from Washington, D.C., to regional offices across the country. During a briefing last week that was hosted by federal union leaders, critics said many employees are expected to leave rather than relocate, raising concerns about staffing levels and the department's ability to carry out key responsibilities. Former Acting Agriculture Secretary Kevin Shea warned the move could affect USDA's work in areas such as animal and plant health, food safety, and forest management, saying an experienced workforce is essential to those missions. Agriculture Secretary Brooke Rollins announced the reorganization one year ago, with regional hubs planned for North Carolina, Missouri, Indiana, Colorado, and Utah. USDA says the restructuring is intended to move more employees closer to the farmers, ranchers and rural communities they serve.

Tuesday Watch List

Markets

Tuesday features no major reports due for release. Traders will remain focused on U.S. growing season weather, while also watching for updates in the U.S.-Iran war with the weekend pause in fighting sparking significant risk-off trade across markets to begin the week.

Weather

The cold front is not very strong, but is producing areas of scattered showers for Tuesday. It continues to move toward the East Coast, but has gotten hung up in the Central Plains, making for an interesting path for showers from the Central Plains into the Tennessee Valley and up through the Northeast. It is a bit drier and milder behind the front, but mostly in the Midwest. Temperatures in the Plains continue to be hot where it isn't raining.