New World Screwworm Confirmed in Texas

Federal and Texas animal health officials are responding after the first U.S. detection of New World screwworm in decades was confirmed in a calf in South Texas. The USDA says larvae were discovered in the umbilical area of a three-week-old calf. New World screwworm is a highly destructive pest that lays eggs in wounds of warm-blooded animals. After hatching, the larvae feed on living tissue, causing severe injuries, animal health concerns, and significant economic losses for livestock producers. The Animal and Plant Health Inspection Service, along with Texas animal health authorities, has activated emergency response measures. Those actions include establishing a 20-kilometer control zone around the detection site, implementing movement restrictions, increasing surveillance efforts, and expanding sterile fly releases. “Officials immediately activated the necessary response protocols,” the agency said. No additional cases had been detected at the time of the announcement, but surveillance and containment efforts are continuing to prevent the pest from spreading.

Livestock Groups React to NWS Confirmation

U.S. livestock groups reacted to the USDA’s confirmation of the New World Screwworm in South Texas. “The National Cattlemen’s Beef Association and our state partner organizations have been working for more than a year to combat the incursion of the New World Screwworm, and we’re doing everything possible to protect the interests of America’s cattle producers,” said NCBA CEO Colin Woodall. The National Milk Producers Federation said while it’s a disappointing milestone, it’s one they’ve also been preparing for. “It’s important to remember this development has no effect on food safety, and that measures to combat both the screwworm and its spread are in place and time-tested,” said NMPF President and CEO Gregg Doud. Texas & Southwestern Cattle Raisers Association President Stephen Diebel said that 18 months’ worth of preparation has Texas cattle producers ready to respond quickly and effectively. “We have identification, treatment, and reporting protocols in place,” Diebert said. 

Missouri River Runoff Forecast Continues Below-Average

Dry conditions across the Missouri River Basin are continuing to reduce runoff and raise concerns about water supplies and navigation later this year. The Army Corps of Engineers reports May runoff above Sioux City, Iowa, totaled just 1.6 million acre-feet, or 46 percent of average. Officials say below-normal precipitation, dry soil conditions, and a lack of mountain snowpack have significantly reduced water flowing into the Missouri River system. The Corps has lowered its 2026 runoff forecast to 15.5 million acre-feet, just 60 percent of average and the lowest level in years, if realized. John Remus, chief of the Missouri River Basin Water Management Division, said, “The absence of snow in the plains and limited precipitation has caused the soils to dry out, and the runoff forecast later this summer and fall has been reduced.” If dry conditions continue, navigation flows could be reduced further, and the navigation season may be shortened.

USDA Trade Mission Underway in Argentina and Ecuador

The USDA is rolling out a new plan designed to help small meat and poultry processors expand operations, reduce regulatory burdens, and improve service to producers who rely on local processing facilities. Secretary Brooke Rollins said the Small Processors Action Plan will make it easier for small and very-small federally-inspected plants to work with USDA while maintaining strong food safety standards. The department is also opening applications for the fourth round of the Meat and Poultry Processing Expansion Program, which includes an additional $60 million in funding. USDA says the plan will improve response times, provide clearer guidance, streamline appeals processes, and increase support for processors with limited technology or connectivity. Small processing plants make up the majority of federally inspected facilities and play a key role in supporting livestock producers and rural economies. “We are removing overly burdensome red tape, improving service, and giving small plants the clarity and support they need,” Rollins said. 

FARM Program Publishes 2026 Drug Residue Prevention Manual

Dairy producers have an updated resource available to help ensure responsible medication use and prevent drug residues from entering the food supply. The National Dairy Farmers Assuring Responsible Management, or FARM Program, has released its \ Milk & Dairy Beef Drug Residue Prevention Reference Manual. The publication provides dairy farmers and veterinarians with current information on best practices for antibiotic stewardship, animal health management, and residue prevention. The updated manual includes guidance related to FDA-authorized drugs being used to combat New World screwworm, as well as the agency’s recently finalized Guidance for Industry 273, which addresses the use of medically important antimicrobial drugs in food-producing animals. “The U.S. dairy industry is committed to antibiotic stewardship and judicious use of all medications used for dairy cattle,” said Dr. Jamie Jonker, chief science officer with the National Milk Producers Federation. The manual also covers recordkeeping, drug administration, residue testing, herd health, and approved treatment options.

Refining Group Sues EPA Over Biofuel Mandate

A major refining industry group is challenging the Environmental Protection Agency’s latest Renewable Fuel Standard requirements, setting up a new legal battle over federal biofuel policy. The American Fuel & Petrochemical Manufacturers, or AFPM, filed a lawsuit in the U.S. Court of Appeals for the D.C. Circuit challenging EPA’s finalized 2026-2027 Renewable Fuel Standard volumes. AFPM argues the rule places excessive compliance costs on fuel refiners and could ultimately increase costs for consumers. According to the organization, compliance costs under the new mandate recently surpassed 35 cents per gallon and could exceed $106 billion over the next two years. The group contends the rule is impractical and economically burdensome. AFPM President and CEO Chet Thompson said, “This is the inevitable consequence of EPA finalizing an unlawful, impracticable regulation.” The lawsuit comes as biofuel policy remains a key issue for both the refining industry and agricultural groups that support renewable fuel demand.

Friday Watch List

Markets

On Friday at 7:30 a.m. CDT, the Bureau of Labor Statistics will release the monthly Employment report with jobs and wage data for May. At 2:30 p.m. CDT, CFTC will update trader positions as of Tuesday, June 2, in the weekly Commitments of Traders report.

Weather

A front is getting dragged into the Midwest on Friday. Showers and thunderstorms continue from northern Missouri into Wisconsin Friday morning while more will develop across the region through the afternoon and especially in the evening around southern Iowa. Though some severe weather will be possible, heavy rain may produce flooding from southeast Nebraska into northern Illinois. Other more limited showers are forecast across the Plains.