DTN Early Word Livestock Comments      12/24 06:10
   Traders' Interest Is Expected to Be Limited

   Live cattle futures could not find the support they needed on Monday as
traders are uncertain about cash strength this week. The strength of the cattle
complex was confined to the January feeder cattle contract. Hogs fell back
ahead of the Quarterly Hogs and Pigs report as traders positioned themselves to
reduce exposure.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Mixed       Live Equiv: $228.15 +0.24*

   Hogs: Lower          Futures: Lower       Lean Equiv: $100.51 -$2.66**

   *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 chopped around spending little time in positive
territory in general. The Cattle of Feed report was digested and provided
little direction for traders. Cash likely will not trade until later in the
week and may be lighter than usual due to the holidays. It is uncertain how
aggressive the packers will be due to having purchased cattle for deferred
delivery last week. They could try to do the same this week to better position
themselves. Boxed beef prices were higher with choice up $0.13 and select up
$0.84. January feeder cattle showed significant strength on Monday as it was
the contract that traders were able to push to take advantage of the movement
to scalp a quick profit. It is a shorter trading day today with the markets
closing at 12:05 Central time.