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DTN Early Word Livestock Comments      11/29 06:23
   Traders May Remain Cautious Again

   Livestock could not find any support Monday. The optimism for higher cash
was not sufficient to trigger buying interest in cattle futures. Lower corn
prices much of the day did not provide support for feeder cattle. Hogs fell
apart despite stronger cash and cutouts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Mixed     Live Equiv:   $188.73 +$0.09*

   Hogs: Higher           Futures: Mixed      Lean Equiv:  $97.38 +$1.89**

   *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:

   The action of live cattle futures had many scratching their heads. It was
anticipated traders would trade the strength in cash last week and the
potential for cash this week. That was not the case. Traders may be turning
more cautious as the month of December approaches. There is uncertainty whether
demand will remain as strong as it has been as we move through the end of the
year. There is no doubt cattle supplies are tightening, but will slaughter pace
hold as well as it has? Feedlots will look for higher cash again this week as
packers are likely short-bought after last week. Offers have not yet been
posted. Boxed beef put a negative tone in the market with mixed prices. Choice
was $2.70 higher while select was down $5.84. The Commitment of Traders report
showed funds as net buyers of 11,146 live cattle contract, bringing their
net-long positions to 60,850 contracts.
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