DTN Early Word Livestock Comments      11/26 06:18
   Significantly Lower Cash Trade Surfaces

   Nearby live cattle contracts could not pull into positive territory by the
close after trading on both sides of unchanged. Differed live cattle and feeder
cattle rebounded. Hogs were able to hold gains ahead of the holiday, likely due
to some short covering.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Mixed        Live Equiv: $269.70 -$0.12*

   Hogs: Higher           Futures: Mixed        Lean Equiv: $98.36 -$1.53**

   *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:

   It would seem that cattle futures are overdone to the downside after the
sharp decline, but are they? Limited cash cattle trade on Tuesday showed
substantial weakness, with Northern dressed cattle trading $15.00 lower and
Southern live cattle as much as $9.00 lower. This is the largest weekly cash
decline we have seen in a long time. Feedlots may be selling in fear as lower
prices are possible in the near term, and heavy cattle need to be marketed.
Holding onto cattle to heavier weights is not a profitable endeavor right now.
Boxed beef pieces were mixed with choice down $0.40 and select up $0.42. The
markets will be closed on Thursday for Thanksgiving.