DTN Early Word Livestock Comments      01/26 06:20
   Mixed Trading Expected to Begin the Week

   Live cattle showed strength on Friday, leading the gains, while feeder
cattle held back. Cash cattle traded higher, providing the support. Hog futures
were mixed with the nearby contracts lower, attributed to some profit-taking
ahead of the weekend.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed     Live Equiv: $270.49 +$0.87*

   Hogs: Steady            Futures: Higher     Lean Equiv: $101.53 +$1.13**

   *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:

   It took until Friday for cash cattle to trade again, and it was well worth
the wait. Southern live cattle traded steady to $2.00 higher, while Northern
dressed traded $5.00 higher. Packers keep holding out, hoping for something
that would reduce cash prices for cattle, but the wait has no impact. Feedlots
know that supplies are tight, and they have little need to move the cattle they
hold. Boxed beef prices were higher with choice up $1.47 and select up $0.66.
The Cattle on Feed report may not be much of a market mover. It was considered
neutral overall, with placements a bit bearish because it was higher than
expected. One feed as of Dec. 1 was 96.9%, placements in November were 94.6%,
and marketings were 102%. The Commitment of Traders report showed the fund
traders increasing their long positions in live cattle by 1,122 contracts to a
net long of 101,471. The net-long position in feeder cattle increased by 357
futures contracts to 17,405.