DTN Early Word Livestock Comments      02/13 06:10
   Higher Cash Cattle Prices Expected

   Live cattle futures were able to close near the middle of the trading range
for the day on Thursday. Without any cash trade taking place, traders felt they
have higher cash factored in. Selling pressure increased in hog futures as
stops were triggered, propelling the market lower.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Mixed     Live Equiv: $268.91 -$0.43*

   Hogs: Lower            Futures: Higher     Lean Equiv: $101.43 +$1.88**

   *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 closed mixed and near the middle of the trading range for the
day. Futures have a higher cash cattle trade factored in, with traders waiting
to see just where it will land. The general feeling is that cash will be
higher. Boxed beef prices were mixed, with choice down $1.08 and select up
$0.45. The announcement of Cargill closing its ground beef plant in Milwaukee,
Wisconsin, had some impact on the market, but it was limited. It is unfortunate
as the beef will now be processed at a different facility, with transportation
adding to the cost. Strong beef demand continues amidst tightening cattle
supplies. Carcass weights are at record highs as packers require heavier cattle
to make up for lower cattle numbers. The markets will be closed on Monday for
President's Day.