DTN Early Word Livestock Comments 11/27 06:17

DTN Early Word Livestock Comments 11/27 06:17 Cash Cattle Trade Should Develop Ahead of Holiday Feeder cattle futures continued to push higher Tuesday. Support continued on the news of the restriction of cattle imports from Mexico. This supported some live cattle contracts, but the spread between feeders and lives continued to widen. Hogs made new contract highs as traders remain bullish on the market. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $223.41 +$1.34* Hogs: Lower Futures: Mixed Lean Equiv: $97.07 -$2.18** *Based on the formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. The 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: Feeder cattle futures remained on fire with another day of triple-digit gains and January showing the greatest strength, increasing by $2.62. The spread between live and feeder cattle has widened substantially over the past two weeks. Live cattle have shown little price movement this week, even though the discovery of screwworm in Mexico prompted the restriction of cattle imports from the country. Feedlots have not found support for higher cash prices based on futures. However, boxed beef has been showing strong gains, which may make packers more aggressive. Consumer demand seems to be increasing, moving into the holiday period. Boxed beef prices on Tuesday were higher with choice up $1.86 and select up $1.75.