Fake Screwworm Report Triggers Cattle Market Selloff, Missouri Launches Multi-Agency Probe

Missouri authorities have launched a criminal investigation into a falsified press release about New World screwworm infestations that sparked panic selling in U.S. cattle futures last week. The state’s Department of Agriculture confirmed the fraudulent alert—sent to a northwest Missouri radio station on May 27—precipitated a 2% plunge in Chicago Mercantile Exchange (CME) live cattle futures before being debunked.

Key Impacts & Response

• Market Turmoil: Live cattle futures (LCQ25) plummeted amid 77% surge in trading volume, erasing millions in value before recovering partially.
• Multi-Agency Probe: Missouri’s Highway Patrol, Attorney General, and Livestock Task Force are examining whether the act constituted “malicious market manipulation.”
• Industry Alarm: Rancher group R-CALF USA formally requested the Commodity Futures Trading Commission (CFTC) to intervene, citing vulnerability to disinformation.

Context: Real Biosecurity Threat
The fraud exploited legitimate fears:

• Screwworm larvae devour livestock alive, with infestations spreading northward in Mexico—now 700 miles from Texas.
• USDA suspended all U.S. cattle imports from Mexico indefinitely last month to contain the parasite.

Ongoing Investigations
While CME Group declined comment, Missouri officials emphasized the probe aims to uncover “intent to cause agricultural panic.” No arrests have been made, but digital forensics could trace the fake release’s origin.