Cash feeder cattle prices at auction yards recovered to start this week following last week’s adjustment. Auction prices dropped sharply last week after a tumble in the futures market spooked cattle buyers. 

Feeder steers sold $10-$40 higher at the Joplin Regional Stockyards in Carthage, Missouri, on Monday. That came after prices were $25-$40 lower last week. 

Similarly, prices recovered in Worthing, South Dakota, after a steep drop. Cattle feeders were notably more optimistic about the market and were back to buying cattle at the same prices the market was before the recent meltdown. The CME Feeder Cattle Index was still under pressure by Monday, which fell to the lowest since Aug. 18 at $343.33 per cwt. 

Nothing has changed fundamentally, despite the recent headlines. The U.S. cow herd is still at the lowest level since 1961, while beef demand is at an all-time high. 

This week, USDA Secretary Brooke Rollins said the U.S. is not ready to reopen the border to Mexican cattle. Additionally, the decision will not be based on the Trump administration’s efforts to lower beef prices, Reuters reported. The border’s closure continues to restrict about 1 million head of cattle that typically enter U.S. feedlots annually. 

CME feeder cattle futures have posted a slow recovery this week. January feeders traded $4.62 higher on Monday. Gains continued early on Tuesday before facing pressure before midday. A large gap from last week’s open remains. Futures may try to close the gap, and the January contract has plenty of time to do so before expiration. 

December live cattle futures traded in a narrow inside range on Monday, lifting prices by $2.53. 

The USDA also said on Friday that it will release its November Cattle on Feed report on Nov. 21 despite the government shutdown.

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.