DTN Early Word Livestock Comments      01/10 06:09
   USDA To Release WASDE, Grain Stocks Reports Friday

   Livestock futures were higher Thursday. Cattle futures were sharply higher
with cash cattle at record highs. Beef prices continue to advance on strong
demand. Hogs increased in spillover trading as underlying fundamentals did not
provide much support.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher        Futures: Mixed       Live Equiv: $240.05 +$1.38*

   Hogs: Lower          Futures: Mixed       Lean Equiv: $96.28 -$0.05**

   *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:

   Northern dressed cattle traded about $5.00 higher with Southern live cattle
trading $4.00 higher. The strength over the past few weeks has been incredible.
Beef prices continue to increase with choice boxed beef up $2.17 and select up
$1.46. Consumers prefer beef and are willing to pay for it. The heavy cattle
weights have not hindered the market, but are a blessing, allowing for more
meat per carcass. This has also allowed feedlots to remain in the driver's seat
as holding cattle for higher prices has not been detrimental. New contract
highs were again seen in most live and feeder cattle contracts. Feeder cattle
continue to see strong demand at auctions with some seeing double-digit gains
over the previous week.