DTN Early Word Livestock Comments      01/27 06:10
   Cash Will Set Futures Direction

   Even though cash cattle trade is generally waiting until today, futures just
could not hold until cash was actually seen. A few trades steady with last week
did not sit well with traders. Hog traders got excited yesterday after
initially making a new low. An oversold correction may be unfolding.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Lower     Live Equiv:   $199.63 -$0.61*

   Hogs: Higher           Futures: Mixed     Lean Equiv:   $88.27 +$1.35**

   *Based on formula estimating live cattle equivalent of gross packer revenue.
(The Live Cattle Equiv. 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 slid lower yesterday as there had been some disappointment with cash
trade waiting until Thursday and then trading steady with last week. Trading
activity was light in the North which was not enough to indicate what will
transpire today, but it may have set the stage. Southern cattle have not yet
traded with bids and offers about $3.00 apart yesterday. There is no doubt
packers will need cattle to maintain a strong slaughter pace, but feedlots
continue to see high feed prices and will need to move cattle that are ready
for the market. Export sales were good at 25,100 MT but were unable to provide
support. Boxed beef was mixed with choice up $0.47 and select down $0.32.