DTN Early Word Livestock Comments      11/17 06:08
   Traders May Begin Week With Caution

   Livestock futures closed the week on a positive note, but trader excitement
may be difficult to unfold Monday. The lower cash prices for cattle have been
absorbed, with little reason to be excited over cash this week. Hog futures
held support, but have little reason to trend higher.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower             Futures: Mixed     Live Equiv: $269.59 -$1.57*

   Hogs: Steady             Futures: Mixed     Lean Equiv: $103.33 +$1.84*

   *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:

   Cattle will have a difficult time regaining the losses of the past month.
This was evident last week as futures fell back to the lows after the large
increase Monday. Although cattle numbers remain tight, lower cash is dictating
the strength of the market. Boxed beef has not provided much reason for traders
to feel bullish about the market. Boxed beef on Friday declined $2.84 for
choice and was down $0.79 for select. Feedlots face another week of difficult
decisions on whether to hold or to sell cattle and move them the week before
Thanksgiving. Packers have some cattle purchased ahead and may not be very
aggressive this week, and certainly not next week. Feeder cattle prices in the
country are mixed, but have been trending lower.