DTN Early Word Livestock Comments      01/09 06:18
   Higher Cash Cattle Prices Expected

   Livestock futures pushed higher Thursday as light cattle trade was noted at
higher cash. Hog futures were supported by optimism resuming the uptrend with
new contract highs.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Higher     Live Equiv: $262.37 +$1.76*

   Hogs: Lower            Futures: Lower      Lean Equiv: $96.61 -$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:

   Traders quickly reversed Wednesday's losses as light dressed trade developed
in Nebraska at $5.00 higher than last week. This should have set the stage for
further trade development Friday at higher prices. The packers may be
short-bought as they have not been aggressive over the past few weeks. Higher
cash prices, higher boxed beef, and another discovery of the New World
screwworm in the buffer zone should provide further support to the market. The
report of a screwworm case was released after the markets closed Thursday. This
will continue to prevent feeder cattle imports from Mexico from entering the
U.S. indefinitely. Boxed beef showed choice up $2.51 and select up $2.78.