DTN Early Word Livestock Comments      12/05 06:20
   Livestock Futures May Trade Higher Thursday as Traders Buy The Weakness

   Lower prices dominated the day on Wednesday as traders had little to hang
their hats on. No cattle were traded in the cash market and boxed beef provided
little direction. Hogs fell back with volatility increasing, possibly
suggesting trader uneasiness at these prices.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Lower       Live Equiv: $222.52 -$0.49*

   Hogs: Lower          Futures: Mixed       Lean Equiv: $95.55 -$0.01**

   *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:

   Live cattle futures added another day to the recent sideways trading pattern
that has developed. Traders are waiting for cash to provide direction. Cash
cattle have yet to trade with packers and feedlots determined to accomplish
business on their terms. Feedlots seem current and can afford to carry cattle
over for another week while the packers have some cattle already purchased,
possibly limiting their need to be aggressive. Boxed beef prices provided
little direction with choice down $2.50 and select up $2.37. There has been no
further news about the restriction of cattle imports from Mexico which may
provide continued support to the market. Feeder cattle futures fell back
Wednesday but the weakness is not likely to trigger further liquidation. Demand
for feeder cattle at auctions remains strong.