Livestock futures surged out of the gate on Monday following news of the U.S. government potentially reopening soon.
January feeder cattle futures traded $9.25 higher in a limit-up move on Monday to $328.82 per cwt. December live cattle futures briefly touched limit-up but closed off their highs for a $7.02 move to $228.37.
Outside markets caught a bid from the potential government reopening and inflationary comments from the president. Market exuberance likely seeped into the protein markets. Cattle futures will have expanded limits for tomorrow’s trade.
Eight Democrats are expected to join Republican senators to pass a funding bill that could reopen the government as early as this week. If passed, the bill would go back to the House before heading to the president’s desk.
Causing waves was President Trump’s latest social media post that signaled a potential $2,000 “dividend” for Americans that would come from funds raised through tariffs. U.S. Treasury Secretary Scott Bessent walked back the post.
News broke late last week that the Trump administration is working with pharmaceutical manufacturers to lower costs for GLP-1 weight loss drugs. Growing GLP-1 usage has been identified as a bullish driver for U.S. meat demand due to diet support favoring lean proteins, particularly chicken. However, beef and pork consumption could also get more attention from dieters.
Cash cattle trade was lower last week. Negotiated fed trade mostly $2 lower in the Western Corn Belt, with prices averaging $227.56 per cwt. Cattle were $3-$4 lower in the Texas Panhandle, with prices around $232.
Feeder steers and heifers in the South Central and Southeast regions sold steady to $10 higher last week. Calves in the North Central region sold $5-$10 higher.
February lean hog futures surged $3.47 higher on Monday to close at $82.82 per cwt. Speculative profit-taking likely led to the sharp gains after fund shorts had been piling into the February contract since falling from contract highs early last month.
Prices had broken a major support level last week at the July 15 low of $80.17. Bearish pressure could still limit gains due to seasonal weakness. Near-term resistance is around the 200-day moving average around $83.40.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.