BSE and cattle futures

(1)The most recently tested cow turned out not to have mad-cow disease. (2)We keep hearing rumblings that maybe the U.S. will start allowing more shipments of more beef from Canada to the U.S. These two news items should have an impact on the futures markets, if traders believe the public policy pronouncements of the bureaucrats and politicians.

Even though herds are smaller now, it looks as if the U.S. futures markets might be anticipating there will be an increase in supply (or further reduction in demand) over the next year. But not much. Shows how much traders believe things are going to change.