DTN Early Word Livestock Comments      01/21 06:18
   Mixed Trading Activity Expected Tuesday

   Cattle futures had the higher cash trade for the week factored in with
futures closing mixed Friday ahead of the extended weekend. Traders may look
ahead to a week of renewed optimism after higher cash last week. Hogs fell as
it seemed more that traders decided to take some profits rather than being
fundamental-focused.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Mixed       Live Equiv: $243.62 -$0.35*

   Hogs: Higher         Futures: Mixed       Lean Equiv: $97.99 -$1.71**

   *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:

   Cash cattle finished another higher week Friday with futures already having
it factored in. Futures are holding a discount to cash likely due to the
caution in the market over the lofty beef prices. Traders anticipate there will
be a point at which prices will not continue to increase. Once that happens, it
could trigger substantial selling as the fund traders hold a record-long
position in feeder cattle and a near record-long position in live cattle. But
for now, the trend is up and the market is supported. The Cattle on Feed report
will be released Friday, but it is too early for traders to position themselves
ahead of the report. Boxed beef prices were lower Monday with choice down $0.53
and select down $0.39. The Commitments of Traders report showed fund traders
adding 5,239 futures positions to bring their net-long position to 149,725
contracts. They added 2,176 futures to feeder cattle, bringing their net-long
position to 26,768 contracts and another record-long position.