DTN Early Word Livestock Comments      12/30 06:13
   Similar Livestock Trading Activity Expected Today

   Monday likely set the pattern for the week with mixed trading activity in
live cattle futures. The expectation is for the cash cattle trade to be steady.
Hog futures showed a similar pattern with mixed futures prices and limited
price changes.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Lower       Live Equiv: $257.45 -$0.55*

   Hogs: Steady            Futures: Mixed      Lean Equiv: $101.78 -$1.75**

   *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:

   Live cattle futures were mixed with nearby contracts lower and deferred
contracts higher. That may have defined the pattern to be seen this week as
traders position their accounts for the end of the year. The cash cattle trade
is expected to remain steady, as packers are likely to have already purchased
most of the cattle they need. However, feedlots might be willing to sell some
cattle on Friday to move heavier-weight cattle and take the income in the new
year. Boxed beef prices were mixed with choice down $1.88 and select up $1.82,
which provides some stability, but this does not indicate prices have found
support. Feeder cattle futures tried desperately to close the chart gaps above
the market, with only the September and November contracts succeeding. Both of
these contracts have another chart gap to fill at a higher level, which is
likely to be filled at some point.