Feeder cattle futures CME rose modestly after USDA data confirmed lower cattle-on-feed totals. Traders report brisk physical market activity, with forward contracting for fall deliveries giving additional lift to September futures prices. The U.S. 30-year Treasury bond futures edged only 0.08% lower in September. The long bond futures remained within the 110-01 to 127-22 trading range, which has been in place since December 2023. America’s cattle industry is juggling challenges on nearly every front. CME futures reflected those pressures, with December live cattle contracts dropping midweek, while November feeder cattle held steady or moved up—showing a tug-of-war between supply worries now versus later. The main culprit is the screwworm parasite, up nearly a third in Mexico this year and inching closer to US herds, raising the risk that the border stays closed to Mexican cattle imports. The FDA just greenlit Dectomax-CA1, an injectable screwworm treatment, though rolling it out could take time. Meanwhile, shifting demand showed up in USDA data: select beef cuts are getting pricier, while top-tier choice cuts have cooled. And with the government shutdown pausing regular USDA reports, traders are left reading between the lines on market signals. The CME feeder cattle futures market reflects strong basis levels between cash and futures, signaling bullish short-term sentiment. Analysts are watching feeder-to-fat cattle spreads for potential profit-taking opportunities.