DTN Closing Livestock Comment 02/05 15:50
   Cattle Futures Fold Under Pressure

   Sharp end-of-the-day losses flooded into the live cattle and feeder cattle
trade Thursday afternoon. The announcement that JBS's Greeley Plant had voted
to strike was the initial spark that led to the downward price plunge.

Rick Kment
DTN Analyst

GENERAL COMMENTS:

   Cattle futures quickly reversed early week momentum Thursday as active trade
pressure developed in all live cattle and feeder cattle trade. The announcement
that JBS's Greeley Plant had voted to strike was the initial spark that hinted
at market pressure. But the aggressive and uniform pressure seen in all cattle
trade indicates that this news was only the tip of the iceberg, and early week
support was unable to hold the weight of the initial market shift lower.
Outside markets also played a significant role in underlying cattle market
support, given the active financial losses, which are creating additional
economic concerns. Hog prices closed lower on the Daily Direct Afternoon hog
report, down $0.24 with a weighted average of $86.58 on 2,279 hogs. March corn
closed up 5 1/2 at $4.35 and March soybean meal closed up $7.00 at $303.20. The
Dow Jones Industrial Average is down 592.58 at 48,908.72.