DTN Early Word Livestock Comments      11/25 06:16
   Light Trading Activity Could Provide Volatility

   Even though cash cattle traded higher than expected Wednesday, futures did
not reflect it. Higher corn price put pressure on feeder cattle with thinner
trade volume leaving traders unable to ignore spillover pressure. Hogs were
under pressure as both cash and cutouts were struggling. Markets will close an
hour earlier Friday.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Mixed     Live Equiv:   $188.78 -$2.18*

   Hogs: Steady           Futures: Mixed      Lean Equiv:  $97.21 -$1.94**

   *Based on formula estimating live cattle equivalent of gross packer revenue.
(The Live Cattle Equiv. 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:

   Cash cattle began trading Wednesday with prices developing with greater
gains than expected. Packers stepped up to purchase ahead of Thanksgiving,
paying $3.00 to $4.00 higher. What may stymie the strength of futures looking
forward is the significant decline of boxed beef, showing choice down $4.07 and
select down $0.85. This may just be temporary as retail outlets had sufficient
beef on hand through the holiday. Or it could be the beginning of a slowing
demand trend. Lighter trading volume with higher cash was unable to move
futures higher, which was a bit of a surprise. Lighter trading activity is
expected again Friday, which may not provide a good indication of direction.
Grain markets were closed overnight, providing no indication of strength or
weakness Friday.