DTN Early Word Livestock Comments      01/12 06:17
   Traders to Focus on WASDE Report Monday

   Cattle futures closed under pressure Friday, but late cash trade may provide
support to begin this week. Feedlots held out and will hold out again this
week. Hogs closed mixed as traders remain uncertain about continued strength.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Higher     Live Equiv: $261.82 -$0.55*

   Hogs: Higher            Futures: Higher     Lean Equiv: $98.14 +$1.53**

   *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:

   Traders seem to have been disappointed with cash trade Friday. It seemed
they had expected packers to raise bids to purchase cattle, and little further
business was done by the close of trading. Cash trade did develop in the South
$1.00 higher than the previous week, while Northern dressed cattle were $5.00
higher, at the level they traded on Thursday. Cattle did not trade as high as
many anticipated, but feedlots held out and were not willing to settle for even
these gains. They will likely hold this week for higher prices as they believe
packers will need cattle and will raise bids. The only concern is boxed beef
prices are not trending higher. Prices were mixed Friday, with choice down
$1.16 and select up $0.11. The WASDE report will be released Monday and will be
the focus of the trade with projections on beef price and production. The
Commitments of Traders report showed fund traders increasing their net-long
live cattle positions by 1,513 contracts to 93,727. There were 1,562 contracts
added to the long position in feeder cattle, raising the total to 17,391.