DTN Early Word Livestock Comments      12/11 06:18
   Early Cash Cattle Trade Sets Stage for Positive Week

   Cattle futures found support and pushed higher Tuesday after a moderate
opening. Light trade developed at steady money with last week providing
confidence to traders that the rest of the week will show steady to higher
cash. Hog futures moved in the opposite direction, posting double-digit losses
even though cash hogs were higher.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher        Futures: Mixed       Live Equiv: $224.61 -$1.13*

   Hogs: Steady        Futures: Mixed       Lean Equiv: $99.00 -$0.49**

   *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 found support Tuesday, pushing the December contract to the
highest close since March 21. The February contract closed near technical
resistance, which may cap the strength in the near term as we move through the
holiday period. However, fundamentals remain positive for demand and the
potential for tighter feedlot supplies early next year. The boost in buying
stemmed from some light cash cattle trade in Kansas at steady money with last
week. It is unusual to see cash trade this early in the week and it gives the
impression that Packers might be short-bought and want to purchase ahead to
prepare for the Christmas and New Year holiday weeks. Packers continue to hold
back on slaughter, but it does not seem to have much impact on the market.
Cattle weights are high but are not overwhelming the market and are, in fact,
positive and provide sufficient beef for demand with tighter cattle supplies.
Boxed beef prices were mixed with choice down $2.41 and select up $0.31. Feeder
cattle futures remained in step with live cattle, posting similar gains.