January 2, 2004

US Mad Cow Case Unlikely To Impact World Feed Grain Prices

Despite an eight cent fall in corn futures last week, the first mad cow case in the United States is unlikely to impact on international feed grain prices, a key barley industry member said.

The majority of the US beef herd is finished in feedlots, and while corn futures have recovered ground, traders are watching the wires for any further news that could affect the price.

Rob Brealey from ABB Grain says if another case of mad cow disease comes to light, there could be significant consequences for local grain growers.

"If the outbreak of mad cow in the US became more than an isolated incidence then we can expect the impact to be somewhat greater. But at the moment I think the market is resigned to the fact it's a one off situation and that it doesn'twarrant any major impact on grain markets at the present time."