Bulls Are Working to Forge Bottoms in Cattle and Hog Prices

October live cattle (LEV26) futures on Tuesday rose $4.075 to $217.025 and hit a two-week high. November feeder cattle (GFX26) rose $5.725 to $320.45 and hit a three-week high. Both markets in morning trading on Wednesday were giving back some of Tuesday's strong gains to start the holiday-shortened trading week.

The cattle futures markets on Tuesday saw more solid short covering and perceived bargain buying by the speculators. President Donald Trump's recent overtures to get smaller U.S. beef processors ramped up appears to have also given a psychological boost to the cattle industry.

October live cattle futures continue to trade at a discount to the cash cattle market, which is also supportive for futures. USDA at midday on Tuesday reported cash cattle trading last week averaged $219.06. The agency said cash cattle trade the week prior averaged $219.25.

Cattle Trade Resumes at Douglas as New World Screwworm Cases Hold Steady

USDA's Agricultural Marketing Service (AMS) reported that 800 Mexican feeder cattle entered the U.S. through Douglas, Arizona, on Tuesday, Sept. 8, restoring movement through the crossing following an equipment-related interruption. AMS described trade and demand as moderate and noted "a lower undertone," while cautioning that there were no recent sales for comparison. All cattle reported were steers weighing 500–800 pounds. The resumption follows a shutdown that began Aug. 28 because of safety problems with a cattle inspection chute at Agua Prieta, across the border from Douglas. The crossing had initially reopened Aug. 24 under the USDA's phased restoration of Mexican livestock imports.

Said respected ag markets watcher Jim Wisemeyer of Ag Bull Media: "Resumed imports offer Southwest cattle feeders another source of replacement animals. Sustained increases could ease competition for available feeder cattle and temper prices at the margin. That matters because USDA's August outlook identified tighter domestic calf supplies for feedlot placement heading into late 2026 and early 2027. However, 800 feeder steers provide limited immediate relief to beef availability. These animals require additional growing and finishing before slaughter, so their contribution to beef production comes months later. A meaningful effect on national supplies and retail prices would require sustained, substantially larger movements." He added, "The next market tests are whether Douglas maintains daily crossings, whether volumes expand, and whether USDA authorizes additional ports."