DTN Early Word Livestock Comments      01/28 06:21
   Hog Futures Are Ripe for a Retracement

   It may take cash trade to move cattle futures above the trading range. It
needs more support to turn the trend higher. Hogs continue to work higher as
the optimism over pork prices continue.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed     Live Equiv: $270.83 -$0.79*

   Hogs: Higher            Futures: Mixed     Lean Equiv: $101.47 -$1.57**

   *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:

   Cattle futures did not accomplish much through the close with slight losses.
Traders may wait for direction from cash before becoming too excited over
higher prices. Packers have been able to purchase some cattle ahead for
deferred delivery, but whether that will be sufficient to keep them from paying
more this week remains to be seen. Feedlots have been in the driver's seat for
quite some time and will remain that way with less expensive feed making
increased weight gain profitable. Boxed beef prices were lower, which may keep
traders cautious today. Choice boxed beef was down $0.79, with select down
$1.93. Feeder cattle prices have not been published as the weather has closed
many of them. However, prices likely will not suffer much.