DTN Early Word Livestock Comments      12/24 06:16
   Hog Futures Expected to Open Lower

   Cattle futures continue to shy away from closing the chart gaps above the
market. The less aggressive nature of packers keep traders wary of the upside
potential of prices through the end of the year. Hogs found sufficient support
ahead of the Quarterly Hogs & Pigs report to close steady to higher. Packers
were more aggressive, paying higher prices.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Lower     Live Equiv: $261.49 -$3.73*

   Hogs: Lower             Futures: Lower     Lean Equiv: $102.51 -$1.72**

   *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 had little to focus on Tuesday, leaving cattle contracts drifting
lower. Contracts were unable to close the gaps above the market and may not
find sufficient strength to accomplish that today. Light cash trade took place
with Southern cattle trading $2.00 higher and Northern dressed cattle trading
$1.00 lower. This is not expected to significantly influence the market, with
trading likely to be mixed and characterized by minimal volatility. The bearish
influence of the market may be the significant decline in boxed beef. Choice
boxed beef fell $7.10, with select down $1.10. This weakness may be temporary,
but it is substantial. The markets will close at noon CST today and will be
closed on Thursday, Dec. 25.