DTN Early Word Livestock Comments      02/11 06:10
   Hog Futures Liquidation May Run Its Course

   Cattle and hog futures could not find a solid footing on Tuesday as prices
drifted lower. Cattle traders are waiting for cash direction. Hog traders have
liquidated to relieve the overbought position and the uncertainty of cash.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed     Live Equiv: $270.12 -$0.62*

   Hogs: Higher           Futures: Mixed     Lean Equiv: $101.24 -$0.37**

   *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 were not under pressure due to any specific fundamental news,
but rather from traders' inability to find a clear price direction. It seems
the WASDE report garnered some attention, but USDA's estimates of beef
production and prices are not a market-mover. More interest was directed to
grains and the implications for feed prices. There has been no cash trade as
usual this early in the week, with traders mixed as to further upside price
this week. Most believe that cash will again trade higher as cattle supplies
are tight and feedlots will hold for higher prices. However, there may be a
need to move some of the heavier cattle as it gets to a point when it becomes
unprofitable to hold. Boxed beef prices on Tuesday were lower, with choice down
$0.21 and select down $2.45.