DTN Early Word Livestock Comments      01/15 06:10
   Hog Futures Should Find Support From Strong Cash

   Wednesday, cattle futures did not hold the breakout from Tuesday and closed
lower despite optimism for a higher cash cattle trade. Hog futures pushed above
price resistance with some contracts, making new highs.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Higher     Live Equiv: $264.43 +$0.38*

   Hogs: Higher            Futures: Higher     Lean Equiv: $97.11 -$0.51**

   *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:

   No cash cattle trade has taken place. Smaller showlists and better boxed
beef prices point to higher cash trade. However, traders are cautious and did
not extend the gains from Tuesday, as they are uncertain about how aggressively
packers will be. The general feeling is packers are short on cattle and will
need to step up and purchase for slaughter. Fed cattle supplies are tight and
feedlots are willing to hold for higher prices. Feed prices will remain
reasonable, providing more flexibility for marketing. Boxed beef prices were
higher with choice up $0.54 and select up $0.47. Feeder cattle in the country
continue to trade at higher prices. Feedlots continue to have difficulty
finding sufficient cattle to keep the lots full.