DTN Early Word Livestock Comments      02/25 06:14
   Uncertainty Remains in the Cattle Market

   Cattle futures showed slight gains, having difficulty uncovering strong
buying interest. Uncertainty clouded the market, leaving traders cautious. Hog
futures posted a strong day, with nearby April leading the way with December
and later contracts reaching new highs.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Higher     Live Equiv: $275.56 +$4.42*

   Hogs: Lower             Futures: Mixed     Lean Equiv: $102.73 -$0.45**

   *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:

   The February live cattle contract is heading for completion and will end
trading on Friday. It may show limited volatility as the contract winds down.
Cash cattle have not traded, but the overall sentiment is for higher prices.
The union at the JBS Greeley plant is hosting a three-day registration event
for the strike, with the last registration day on Thursday. Union workers must
sign up to take part in a potential strike that has not yet occurred. This
potential strike is keeping traders cautious as it is uncertain what impact it
would have on the market. The current slaughter continues to run at a slower
pace than a year ago. The slower slaughter pace may have finally done what
packers have been hoping for -- increased boxed beef prices. On Tuesday, choice
cuts jumped $8.21 and select increased $1.70.