DTN Early Word Livestock Comments      02/27 06:20
   The Stage is Set For Lower Cash Trade

   Cattle futures did not find good news Thursday. Export sales were not
something to get excited about and light cash cattle sales took place at lower
prices than last week. Hog futures were mixed with nearby contracts lower and
deferred contracts at new highs.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Mixed     Live Equiv: $277.24 +$0.27*

   Hogs: Lower             Futures: Lower     Lean Equiv: $103.16 -$0.24**

   *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:

   Cattle fututes came under selling pressure at the opening bell as traders
did not find support from weekly export sales of 12,900 metric tons (mt), down
from the previous week. The strike at the JBS plant is an uncertainty that may
have triggered some long liquidation. The three days of registration for
workers that took place before the strike were completed Thursday, leaving the
potential for the strike to take place at any time. This may have influenced
some feedlots to sell some cattle on Thursday $3.00 to $4.00 lower. The impact
on the market is uncertain and a choice was made to sell at lower prices rather
than take a chance. Trading was light, but likely set the stage for cash trade
Friday. Boxed beef prices were mixed, with choice down $1.34 and select up
$3.72. Friday is the last day to trade the February live cattle contract.