DTN Early Word Livestock Comments      12/13 06:21
   Cash Cattle My See Further Gains Friday

   Live cattle futures made a valiant effort to extend gains for the fourth
consecutive day on Thursday. However, aggressive buying waned with sellers
turning aggressive at the lofty prices. Hog futures held onto slight gains at
the closing bell, even though cash and cutouts struggled.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher        Futures: Mixed       Live Equiv: $226.50 +$2.49*

   Hogs: Steady        Futures: Mixed       Lean Equiv: $98.17 -$0.56**

   *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 have adjusted to the higher cash prices. More cash trade
is expected Friday as activity has been somewhat light. Packers may have to bid
up to purchase what they need. So far this week, Northern dressed has traded
$3.00 higher with Southern live cattle at steady to $2.00 higher. Packers seem
short-bought, which could cause them to step up more aggressively Friday.
Feedlots are holding tight to higher offers and have been able to receive
higher prices. Packers may purchase only what they need, which may leave them
short-bought next week. Boxed beef prices were higher with choice of $4.01 and
select up $2.37. Weekly export sales were good at 11,000 metric tons (mt) but
nothing to write home about.