DTN Early Word Livestock Comments      12/19 06:09
   Traders Will Position Ahead of the Cattle on Feed Report

   Cattle futures closed under pressure despite a light higher cash trade.
Traders are positioning themselves ahead of the Cattle on Feed report. Hogs
closed higher, maintaining the sideways trading range. Prices may hold into the
weekend.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Mixed       Live Equiv: $261.11 +$0.07*

   Hogs: Lower            Futures: Mixed      Lean Equiv: $103.25 -$1.11**

   *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:

   Traders pushed cattle futures lower, closing the chart gaps below after
having been unable to find sufficient buying interest to close the upper gaps.
Traders began positioning themselves ahead of the Cattle on Feed report, which
is scheduled for release this afternoon. The trade estimates are for On Feed as
of Dec. 1 to be at 98.3%, with a range of 97.3% to 99.0%. Placements in
November are estimated at 92.4% with a range of 84.4% to 96.0%. November
marketings are estimated at 88.4% as of a year ago, with a range of 87.5% to
89.0%. When breaking down the day's that cattle are on feed, the estimates show
that cattle on feed of 120- and 150-plus days will be significantly higher than
a year ago. Heavier weights indicated cattle are being held longer. Boxed beef
prices were mixed on Thursday, with choice up $1.19 and select down $2.46. Some
light cash trade took place in Nebraska at $4.00 higher, possibly indicating
packers will remain aggressive and pay more for the cattle they need.