DTN Early Word Livestock Comments      01/08 06:22
   Livestock Futures May Show Further Weakness

   Cattle futures took a breather on Wednesday despite no cash cattle trade
developing for the week. Some liquidation developed on the uncertainty over the
strength of cash. Hog futures showed pressure due to the weakness of cash on
the potential that packers will remain unaggressive.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Mixed       Live Equiv: $260.61 +$1.11*

   Hogs: Higher            Futures: Mixed       Lean Equiv: $98.11 +$1.04**

   *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:

   After the substantial gains in cattle futures since the beginning of the
year, the market was overbought and ready for a price correction. The market
did not turn bearish, but some traders decided to take some profits off the
table. The anticipation is for a higher cash cattle trade to develop this week,
but likely, it may already have been factored into the market. No cash cattle
trade has developed, as packers are reluctant to pay more due to their margins
being in the red. However, cattle will need to be purchased, and feedlots will
not let them go at lower prices. The boxed beef prices on Wednesday were mixed,
with choice up $3.03 and select down $1.80. The new dietary guidelines released
by the White House put meat, dairy, fruit, and vegetables at the top of the
food pyramid. This is positive for meat consumption.