DTN Early Word Livestock Comments      12/09 06:05
   Mixed Livestock Trading Activity Is Expected

   Cattle futures tried to extend gains but could not move and hold into
positive territory. The strong gains of the past two weeks may have run their
course. Hog futures found sufficient support to keep them in positive
territory, but the minor gains did not generate much excitement.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed       Live Equiv: $263.80 +$0.12*

   Hogs: Higher            Futures: Mixed      Lean Equiv: $101.65 -$0.88**

   *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:

   Cattle futures closed lower, which was somewhat expected after the recent
substantial increase in futures prices put them closely in line with cash.
Until traders get a better idea of the potential for cash trade, they may
remain less aggressive. The current anticipation is for cash trade to be
steady. The feedlots will attempt to hold out for higher prices, but this may
not be feasible due to a struggling boxed beef market. Boxed beef prices were
mixed with choice down $0.30 and select up $1.21. Strong demand remains for
feeder cattle in the country, with auction prices continuing to command a
premium. This will keep prices from decreasing very much despite the
government's efforts to reduce beef prices. Beef prices are high because of
tight supplies and strong consumer demand.