DTN Early Word Livestock Comments      12/18 06:23
   Traders Look Ahead to the Cattle on Feed Report

   Livestock futures declined in all categories and all months. Cattle were
under pressure as futures have been unable to push through price resistance.
Hog futures turned lower as traders decided to take profits due to a lack of
bullish fundamentals.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Mixed       Live Equiv: $261.04 -$1.94*

   Hogs: Lower           Futures: Mixed      Lean Equiv: $104.36 -$0.02**

   *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 have been unable to penetrate price resistance and close the
chart gaps. This triggered selling as closing the gaps below the market may be
easier to accomplish. The optimism of steady to higher cash has waned as boxed
beef prices are not finding solid support. Boxed beef was lower in all
categories, with choice down $2.79 and select down $2.67. Cash cattle may not
trade today as business may wait until later on Friday due to the Cattle on
Feed report being released then. The trade estimates for On Feed as of Dec. 1
are 98.3%. Placements in November are estimated at 92.4%. Marketings in
November are estimated at 88.4% of a year ago. Placements will be lower, but
lower marketings will more than offset the decline. Estimates for placements
range from 84.4% to 96.0%.