DTN Early Word Livestock Comments      12/06 06:27
   Cash Cattle Expected to Remain Higher Friday

   Cattle futures came under pressure Thursday as traders did not like the
export sales number at a marketing year low and down 97% from the previous
week. Beef prices may be just too high. Hogs held their ground despite cash and
cutout weakness.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher        Futures: Higher       Live Equiv: $222.15 -$0.37*

   Hogs: Lower          Futures: Lower        Lean Equiv: $94.59 -$0.96**

   *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 like the weekly export sales report Thursday and liquidated
some positions on the idea that current prices are too high, curtailing
international demand. Weekly export sales were a paltry 100 metric tons (mt),
down 97% from the previous week and the 4-week average. Domestic demand has
been holding well but high food prices may also impact demand. Boxed beef
prices were lower Thursday with choice down $0.49 and select down $0.60. Cash
cattle did not trade during the trading period but did late in the day with
Northern dressed cattle $2.00 higher. Southern cattle have yet to trade but
likely will trade higher as well. This should provide a boost to the market as
futures would adjust higher to remain in line with cash. Feeder cattle futures
look as if they may see a further price correction if live cattle are unable to
provide needed support.