DTN Early Word Livestock Comments      12/02 06:18
   Traders May Begin Week With Caution

   Live cattle did not show much volatility Friday with lighter trading
activity and futures coasting into the end of the week and the month. Feeder
cattle showed greater strength on positive fundamentals. Hogs could not hold
positive momentum as lower cash put pressure on the market.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Higher       Live Equiv: $222.64 -$0.36*

   Hogs: Higher         Futures: Mixed        Lean Equiv: $96.26 +$1.40**

   *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:

   Last week was positive for cattle with cash trading significantly higher.
Southern cattle sold for $3.00 to $4.00 higher while Northern dressed cattle
traded as much as $5.00 higher. Packers needed cattle and were not shy about
bidding up to obtain them. It will be interesting to see the direction cash
takes this week as the market moves through December. Boxed beef prices were
steady to higher with choice down $0.74 and select remaining unchanged from the
previous day. Weekly export sales were a paltry 4,800 metric tons (mt) and
hopefully are not indicating that international buyers are backing away due to
high prices. Feeder cattle showed greater strength, making new highs Friday as
they continue to push toward contract highs. Support continues to stem from the
restriction of cattle imports from Mexico.