DTN Early Word Livestock Comments 11/26 06:52

DTN Early Word Livestock Comments 11/26 06:52 Futures May See Pressure From Outside Commodities Cattle futures exploded higher Wednesday. Packers became aggressive, pushing cash higher in their attempt to procure supplies. Hogs diverged with December posting triple-digit gains as it seems spreads were unwound. A possible new COVID variant may have been discovered in South Africa. Robin Schmahl DTN Contributing Analyst Cattle: Higher Futures: Higher Live Equiv: $208.65 +0.17* Hogs: Lower Futures: Mixed Lean Equiv: $91.84 +0.06** *Based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. Index has been updated to depict recent changes in live cattle weights and grading percentages.) ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: December live cattle futures gapped open Wednesday and never looked back. Later contracts posted new highs as traders were aggressively buying to either exit short positions or to get on board to initiate positions. Buyers seemed to have received their marching orders from packers to purchase cattle at whatever price it takes. It was unexpected that cash business on the hoof would take place at $5.00 to $6.00 higher with dressed cattle upwards of $10.00 higher. It has been some time since we have seen cattle prices at these levels. Boxed beef prices were higher with choice up $0.47 and select up $0.80. Feeder cattle followed suit with triple-digit gains in all contracts. Strong demand for beef and higher prices are pushing feeder prices higher as demand for animals is improving.