AgHost Livestock Close

Cattle futures surged higher at the opening bell Monday morning and maintained active gains through the entire trading session. Although live cattle futures closed well below daily highs, the ability to sustain the $2 per cwt market rally early in the week is still considered a major win. Last Friday’s Cattle Inventory report was the main spark to the renewed buyer support. This report posted that overall cattle numbers were below year-ago levels, and beef cow numbers were 1% below year-ago levels. Calves born last year fell 2% from the year previous. This bullish report was encouraging for the market. But at the same time, we really don’t know much more about the overall scope of the market support. Even without specific numbers, it was not unknown in the industry that cattle supplies have tightened, which has led to current price levels. The challenge in maintaining the most recent market gain is understanding how demand will react to the current supply shortages, and what will happen in the overall beef market over the next two years, when it comes to rebuilding or sustaining the current herd. Hog prices closed lower on the Daily Direct Afternoon hog report, down $1.35 with a weighted average of $82.22 on 715 hogs. March corn closed down 2 1/2 at $4.258 and March soybean meal closed up $0.90 at $294.5. The Dow Jones Industrial Average is up 515.19 at 49,407.66.