U.S. live cattle futures remained on the rebound Thursday after extending nine-months lows due to a report of mad cow disease earlier in the week. Despite the reported case of Bovine Spongiform Encephalopathy (BSE), importers from Canada and Japan said they will continue to purchase American beef.
On Tuesday, the U.S. live cattle futures market tumbled the daily max 3 cents on the heels of the USDA confirming the mad cow disease case in central California. Moreover, the news caused investors to hop on the sidelines of a market recovering from consumer fears over "pink slime," a beef filler.
However, bargain hunters found a buying opportunity when Mexico and South Korea joined other in saying they would to continue to import U.S. beef after learning about the mad cow disease case.
"The rebound came as major Asian buyers, including Japan, said they were not taking any measures against U.S. beef imports," Toshimitsu Kawanabe, an analyst at broker Central Shoji Co. told Bloomberg. "This may not last long as consumers in those importing nations will shy away from U.S. beef on food safety concerns and seek other origins, such as Australian beef."
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