DTN Early Word Livestock Comments      02/14 06:21
   Traders Wait For Cash Cattle Action Friday

   Cattle futures found footing Thursday, but that may not be enough to change
the trend unless cash trades higher. Boxed beef may limit the gains. Hogs tried
to minimize the losses for a while but succumbed to pressure with April closing
the gap.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower         Futures: Mixed        Live Equiv: $234.02 -$0.75*

   Hogs: Lower          Futures: Higher       Lean Equiv: $106.52 +$2.24**

   *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 did not want to put more pressure on the cattle market before
knowing where cash would end up this week. The light trading activity that took
place showed Southern cattle trading was $3.00 lower. Feedlots are intent on
limiting cash weakness and are holding out in hopes packers will need to step
up and purchase. It will be interesting to see who will blink first once
trading volume surfaces. Boxed beef has been trending lower with prices mixed
Thursday. Choice cuts were down $1.86 with select cuts up $0.70. If anything
would put pressure on cash, it likely would be the weakness of boxed beef.
Packers have been reducing the slaughter to position themselves better in the
market and to back up cattle. They are at high weights, which requires fewer
cattle for tonnage. Feeder cattle had a strong day with futures developing a
sideways pattern.