DTN Early Word Livestock Comments      02/26 06:13
   Hog Futures May Find Support Wednesday

   The strength of feeder cattle supported live cattle futures Tuesday. The
trend may be turning up after a substantial price retracement. Cash may be
stabilizing. Hogs could not find support as the weakness of cutouts returned,
keeping traders cautious over demand.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Mixed        Live Equiv: $231.58 +$0.33*

   Hogs: Higher          Futures: Mixed       Lean Equiv: $101.39 -$2.78**

   *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:

   Feeder cattle again led the complex higher with triple-digit gains. Feeder
cattle futures have gained much of what has been lost since late January. Live
cattle have broken the downtrend which may give traders more confidence to buy
into the market. Higher boxed beef prices may provide an incentive for feedlots
to hold out for at least steady cash this week. Choice boxed beef was up $0.59
with select up $0.16. Feeder cattle futures continue to outpace live cattle,
widening the spread. This should pull live cattle higher to narrow the gap.
Feeder cattle and calves are in strong demand in the countryside and will
continue to support the market.