Futures for December live cattle surged $1.78 to $245.43 per hundredweight (cwt), while January feeder cattle gained $1.10 to $370.28 per cwt. December lean hogs also rose $1.20, closing at $83.28 per cwt.

According to Karl Setzer, partner at Consus Ag Consulting, "Livestock futures were mixed this morning but firmed as the day progressed." He added that USDA Secretary Rollins is assembling a package to boost domestic beef production - a pivot from earlier talk of increased beef imports from Argentina.

Tight cattle inventories continue to support prices, with boxed beef prices rallying and bolstering cattle futures. Lean hogs managed gains but struggled to extend early momentum.

Meanwhile, the grain markets closed lower:

• December corn down 3½¢ at $4.19¾ per bushel

• November soybeans down 1¢ at $10.30¾

• December CBOT wheat down 4½¢ at $5.00¼

• KC wheat down 5¢ at $4.85, and Minneapolis wheat off 3¾¢ at $5.44¾

The contrast in grain and livestock pricing signals divergent pressures: grains remain stable, but livestock faces volatility from trade and supply decisions.

Earlier, President Trump's comments about Argentine beef imports sent markets tumbling. His plan, linked to a $20 billion bailout of Argentina, was seen as undercutting U.S. ranchers. "This is a betrayal of the American rancher," said one producer.

Analysts warn that lower beef prices could discourage herd rebuilding, leaving the U.S. more dependent on imports. Trump's approach contrasts with his past protectionist tariffs on steel and aluminum, sparking concerns over policy consistency.

At the same time, the USDA's new tone suggests potential support for rebuilding U.S. cattle herds, possibly through subsidies, tax breaks, or infrastructure investment.

This policy pivot ties into broader farm bill goals around:

• Precision agriculture

• Sustainable livestock practices

• Managing input costs and supply chains

As prices climb, ranchers face key decisions: whether to expand, how to hedge against future volatility, and how federal actions will shape profitability and sustainability.

In the coming months, stakeholders across the ag value chain - from producers to policymakers - will watch whether this rally is short-lived or the start of a structural shift in U.S. livestock markets.