DTN Early Word Livestock Comments      12/11 06:16
   Hog Futures May Find Further Support

   Livestock futures closed higher in all but the spot December live cattle and
lean hog contracts. Traders remained optimistic for at least steady cash trade
this week. Hogs found support as demand seems to be building.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Lower       Live Equiv: $262.25 -$1.50*

   Hogs: Lower             Futures: Mixed      Lean Equiv: $103.41 +$0.83**

   *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:

   Live cattle futures found buying interest with contracts closing near the
highs and the highest close since Nov. 3. On one hand, traders are bullish due
to continued tight cattle supplies, while on the other hand, boxed beef prices
continue to show weakness. Boxed beef prices were lower on Wednesday with
choice down $1.68 and select down $3.15. Cash cattle have not traded, providing
no indication of direction. Feedlots are willing to hold out for higher prices
as they have yet to post their offers. Packers will try to defend their margins
in the face of weaker boxed beef.