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.