DTN Early Word Livestock Comments      12/02 06:06
   Livestock Traders May Remain Cautious Amid Choppy Trade

   Cattle futures began the day with slight gains, but contracts failed to
uncover continued support. Traders may be cautious, keeping the market choppy
until cash trade develops. Hog futures suffered minor losses as traders found
little incentive to support the market.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Mixed         Live Equiv: $269.48 +$2.47*

   Hogs: Higher           Futures: Mixed        Lean Equiv: $100.93 +$0.57**

   *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:

   The cattle market began on a positive note with the anticipation that there
would be follow-through buying after the bounce last week. However, that did
not materialize as traders exercised caution. Traders likely wanted to see
positive fundamental evidence to carry contracts higher. There was a positive
development in boxed beef as both categories closed higher. Choice cuts
increased $2.07, with select cuts up $6.83. But traders may need more than one
day of gains in boxed beef to turn the trend high. A higher cash cattle trade
will need to develop, or the best that might be hoped for in the near term is
sideways trade. Some higher trade developed for feeder cattle in the sale barns
as the supply of cattle remains tight, and lower prices will increase feedlot
interest.