DTN Early Word Livestock Comments      01/16 06:22
   Higher Cash Cattle Trade Provides Support

   Cattle futures found support on Wednesday with mostly triple-digit gains
into the close. Limited cash trade took place at $1.00 higher. Hogs found
further strength with June and July closing above $104 on better demand.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher        Futures: Higher       Live Equiv: $243.72 +$0.43*

   Hogs: Lower           Futures: Mixed       Lean Equiv: $96.41 +$0.62**

   *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:

   You can't push a good market down. The resilience of cattle futures has been
impressive. The strong demand for beef would not indicate otherwise. Boxed beef
was mixed with choice up $1.16 and select down $0.67, but early cash trade was
light but $1.00 higher in the South.  Increased cash activity should unfold
today with Northern dressed cattle likely showing the same increase or more. It
certainly looks like both cash and futures will push above the $200 level. Cash
was anticipated to move to that level about 2 years ago but never quite got
there. Consumer demand has been surprising as it has not backed off as beef
prices rise. Feeder cattle futures held close to live cattle both keeping pace
and slowly increasing the price spread.