DTN Early Word Livestock Comments      01/02 06:00
   Steady Cash Cattle Trade Expected

   Cattle futures were able to close the year on a positive note with higher
prices. Cash cattle trading activity has not yet taken place. Hog futures had
little reason to move one way or the other, with contracts closing mixed.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Lower       Live Equiv: $255.78 -$0.53*

   Hogs: Lower             Futures: Lower       Lean Equiv: $99.56 -$0.39**

   *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 did not liquidate their long positions to end the year, but instead
maintained them due to renewed optimism over cattle prices. Cattle fundamentals
remain bullish, providing traders with the confidence to remain long in the
market. Cash cattle have not yet traded this week, but the expectation is for
business today at steady prices compared to last week. Boxed beef prices have
not indicated that they have found a bottom. Consumers have less disposable
income and may reduce the demand for high-priced cuts of beef in the near term.
Boxed beef prices on Wednesday showed choice down $0.75 and select down $0.78.
The Commitment of Traders report is now up to date since the government
shutdown. The fund traders increased their live cattle long positions last week
by 3,727 contracts to a net long of 93,314. Feeder cattle showed an increase of
672 futures contracts, increasing the net-long positions to 15,198.