DTN Early Word Livestock Comments      02/18 06:25
   Livestock Futures Find Support

   Livestock futures found renewed buying interest after the extended weekend.
Cattle moved higher to move closer to the cash price. Hogs ran out of
liquidation interest with futures low enough for traders to buy back into the
market after it corrected from being overbought.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Mixed     Live Equiv: $268.31 -$1.70*

   Hogs: Lower            Futures: Mixed     Lean Equiv: $101.66 -$0.97**

   *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:

   Traders stepped into the cattle market aggressively after the three-day
weekend. Cash cattle traded higher on Friday after the close. Traders reacted
to the higher cash prices, moving futures closer in line with cash. Live cattle
futures gapped open but were unable to hold the day's highs. This does not
mitigate the potential for further strength as futures remain below the level
of the cash trade last week. The higher beef prices have not reduced demand as
consumers prefer beef and are willing to pay for it. Tight cattle supplies may
tighten further as there is little indication of the cattle herd rebuilding.
The potential for increased beef imports may have little impact on the market.
Boxed beef prices closed lower, with choice down $3.01 and select down $1.01.
Feeder cattle futures did not gap open but moved higher in response to the
strength of live cattle.