DTN Early Word Livestock Comments      02/09 06:22
   Cattle Future May See Pressure From Beef Import News

   Cattle futures fell back substantially from their highs when the news broke
that President Trump was to lower tariffs on beef from Argentina to boost
imports. Futures held some gains due to higher cash. Hog futures close mixed
despite limited support.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Lower     Live Equiv: $271.34 +$2.00*

   Hogs: Lower             Futures: Lower    Lean Equiv: $99.55 -$1.50**

   *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:

   Cattle futures were whipsawed last week, with various news stories creating
volatility. The potential strike at the JBS plant in Greeley seemed to have
been digested to some extent. Then, President Trump signed the order to reduce
tariffs on 80,000 metric tons of beef from Argentina to increase the volume of
trim available to the U.S. market. This took the early strength out of the
market that came from cash cattle trading higher in both the North and South.
The President signing the agreement with Argentina may not have as much impact
as this had been discussed earlier, but it is now to be formally implemented.
This may have more of a psychological impact on the market than a physical one
and may increase selling in futures today. Boxed beef prices were higher, with
choice up $2.08 and select up $4.16. The Commitment of Traders report showed
the fund traders adding 7,372 live cattle futures contracts, bringing their
net-long position to 111,771. The net-long position in feeder cattle was
reduced by 940 contracts to a total of 17,925.