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DTN Early Word Livestock Comments      12/09 06:28
   Futures May Find Direction From Export Sales

   It was not a good day for the livestock complex. Everything closed in the
red. There was no interest shown to trade cash cattle Wednesday leaving traders
wondering just what will transpire. Cash hogs plummeted, but cutouts shot
through the roof.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher   Futures: Mixed    Live Equiv:   $198.00 -2.75*

   Hogs:  Steady   Futures: Higher   Lean Equiv: $ 97.20 +9.35**

   *Based on formula estimating live cattle equivalent of gross packer revenue.

   (The Live Cattle Equiv. 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 were a bit disappointed cash cattle did not trade Wednesday.
Feedlots set their sights on higher cash posting offers and waiting for packers
to step up to the plate. However, boxed beef prices have been falling with
choice down $3.92 and select down $2.59 Wednesday. This may make packers less
willing to pay up as much as they have the past few weeks. However, they do
need cattle and do not have a large amount forward contracted for later
deliveries. Cash should trade Thursday as packers will want to obtain cattle.
Expectations for an increase of cash has been trimmed to $1.00 higher rather
than the earlier $2.00 to $3.00 higher. Weekly exports sales will need to be as
good as last week or better.
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