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DTN Early Word Livestock Comments      12/02 06:05
   Mixed Trading Expected as Futures Have Adjusted

   Live cattle were a bit of a head-scratcher with futures showing little
trading interest even though cash traded higher. It seemed as if traders were
mesmerized by the strong gains in hog futures rather than focusing on cash
cattle. Hogs regained their losses of the week.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Mixed     Live Equiv:   $187.59 -$0.66*

   Hogs: Lower           Futures: Mixed      Lean Equiv:  $94.34 -$0.81**

   *Based on formula estimating live cattle equivalent of gross packer revenue.
(The Live Cattle Equiv. 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.


   It was anticipated cash cattle would trade higher and that is what unfolded.
Southern cattle traded mostly steady with higher trade possible today as some
feedlots passed on those bids holding for higher cash. Northern dressed cattle
were $3.00 to $4.00 higher. Packers are finding feedlots have a strong resolve
to settle for nothing less than steady cash. This did not impact futures as
would have been expected. Traders seem reluctant to push futures above contract
highs over concern of slowing demand into next year. Boxed beef was lower with
choice down $1.31 and select down $0.01. Feeder cattle futures found support
from strong prices being seen at auctions.
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