DTN Early Word Livestock Comments      01/19 06:08
   Packers Need Hogs, Not Afraid to Bid Up for Them

   Cattle were under pressure with feeder cattle leading the way. Futures just
could not find buying interest when cattle began trading early in the week at
steady to lower prices. Hogs were impressive even though cutouts were lower.
Strong cash provided support.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower. Futures: Mixed. Live Equiv: $215.95 +$3.39*

   Hogs: Steady. Futures: Higher. Lean Equiv: $94.16 -$1.86**

   *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:

   As anticipated, feedlots wanted to sell some cattle earlier rather than
later. They had no desire to hold out for later due to the potential that
buyers may finish earlier in the week and they will need to hold cattle another
week. Cattle in the North were traded at steady money while the South traded
cattle $1.00 to $1.50 lower. This sets that stage for the week as some of the
cattle purchased were for deferred delivery, leaving packers with the upper
hand. Boxed beef closed higher with choice up $1.63 and select up $1.34.
Consumer demand is strong and with shortages showing up in grocery stores,
consumers are purchasing more in order to stock up a little when it is
available. This is giving the impression of stronger demand. The Commitment of
Traders report showed funds as sellers of 10,405 futures bringing their net
long to 61,941 contracts.