DTN Early Word Livestock Comments      01/27 06:15
   Cattle Futures May Stabilize Until Cash Trades

   Traders continue to support the livestock complex with optimism building
over demand moving forward. Hog futures continue to make new contract highs on
a nearly daily basis. Higher cash trade may continue.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Higher     Live Equiv: $271.82 +$0.99*

   Hogs: Higher            Futures: Mixed     Lean Equiv: $103.04 +$1.51**

   *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 extended their gains, testing the top end of the recent
trading range. Futures are poised to make another leg higher as cash is again
expected to be higher this week. Feedlots are not going to settle for anything
less and will hold out for higher cash. There is no concern about holding
heavier-weight cattle, as it has been a benefit for feedlots. Packers are
reducing their slaughter pace to improve boxed beef prices and back up cattle
in the country, but to no avail. Cattle supplies are tight, rendering this a
useless endeavor at this time. Boxed beef prices were mixed with choice down
$0.02 and select up $4.73.