DTN Early Word Livestock Comments      01/24 06:14
   Cattle on Feed Report After the Close Friday

   Cattle futures continued to push higher Thursday with new contract highs
across the board. It seems as if the upward momentum will never subside.
Feedlots continue to hold for higher cash. Hog futures closed mixed with little
support despite strong underlying cash.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Mixed     Live Equiv:   $242.15 -$0.60*

   Hogs: Lower           Futures: Mixed     Lean Equiv:   $97.45 +$1.60**

   *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:

   Feedlots continue to hold out for higher cash and seem prepared to hold
cattle until next week if they do not get what they want. Earlier this week,
cash trade took place at steady money with last week. This indicated it would
set the tone for the week. However, that does not seem to be the case. The
feedlots have drawn a line in the sand, and they intend to make the packers
cross that line and pay higher prices. In the meantime, futures continue to
make new contract highs. Trades may pull back a bit Friday as they position
themselves ahead of the Cattle on Feed report this afternoon. The average
estimate for on-feed as of Jan. 1 is 99.8% of a year ago. Placements in
December at 101.8% and marketed in December at 101.3%. Placements are expected
to be the wild card with the range of estimates from 98.8% to 107.1%. Lower
boxed beef prices may provide some pressure along with some profit-taking.
Choice cuts declined $1.06 with select down $0.78.