DTN Early Word Livestock Comments      12/23 06:15
   The Quarterly Hogs & Pigs Report Will Be Released

   The livestock complex was higher on Monday. Cattle were higher, but not with
the exuberance some had anticipated as a reaction to the bullish Cattle on Feed
report. Hog futures increased, with the August contract making a new high.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Mixed       Live Equiv: $265.22 +$1.53*

   Hogs: Higher           Futures: Mixed      Lean Equiv: $104.23 -$1.35**

   *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 reaction of the cattle market to the bullish Cattle on Feed report was
less than expected by many. Much of it has already been factored in with the
overall numbers in the report, providing continued support under the market.
However, the support was not sufficient to close the chart gaps above the
market in most contracts. The June, August and December live cattle contracts
managed to close the gaps. The other chart gaps may be closed before the end of
this week. Boxed beef prices showed strength, with choice up $1.24 and select
up $4.67. It is possible that boxed beef has found support and will trend
higher. Packers are not expected to be aggressive this week due to Christmas
and not needing many cattle due to reduced slaughter and having already
purchased some ahead.