DTN Early Word Livestock Comments      01/22 06:27
   Cattle Futures Have Been Unable to Regain Friday's Losses

   Cattle futures are attempting to recover from the losses incurred on Friday.
However, traders remain cautious and may remain that way until cash trades. Hog
futures continue to find support as traders see promise for higher prices.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Higher     Live Equiv:   $269.33 +$1.25*

   Hogs: Lower            Futures: Higher     Lean Equiv:   $99.76 +$0.51**

   *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 are trying to remain optimistic but are not yet ready to commit
after the weakness on Friday. The cash cattle trade last week did not perform
as well as hoped, keeping traders cautious over the cash trade this week. Boxed
beef increased on Wednesday, with choice up $1.35 and choice up $2.61. There is
no indication as to the potential for cash this week, as no bids or offers have
been posted. Feedlots have been holding on to cattle, resulting in heavier
weights. This has paid off, but there comes a point at which those cattle need
to be moved, or they will cease being cost-effective. If packers remain
unaggressive, greater selling interest may surface. The interest in feeder
cattle and calves has not been as strong this week, with some of it due to the
current weather conditions.