DTN Early Word Livestock Comments      01/30 06:09
   Feedlots Hold for Higher Cash

   Early strength ran its course with cattle futures turning lower. The
potential for a higher trend to continue was put on hold until cash cattle
trade provides direction. Hog futures were able to post a modest close despite
the lack of fundamental strength.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Mixed     Live Equiv: $269.66 -$1.63*

   Hogs: Lower             Futures: Lower     Lean Equiv: $99.21 -$1.62**

   *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:

   Cash cattle trade did not develop on Thursday, leaving traders uncertain
over market direction. Traders anticipate a higher cash cattle trade to develop
but remain cautious anyway. Even if higher cash trade develops, it is the end
of the month, and traders will liquidate some positions to close out their
books for the month. Packers continue to reduce the slaughter pace to support
boxed beef prices and to possibly purchase cattle without being aggressive.
However, they will need to purchase cattle and feedlots will not let them go at
lower prices. Boxed beef prices were lower with choice down $2.08 and select
down $2.85. The weakness is not what packers want, but it is an indication of
consumer demand. Boxed beef has had a difficult time trending higher.