DTN Early Word Livestock Comments      12/29 06:05
   Mixed Livestock Trading Activity Is Expected to Begin the Week

   Cattle futures went into the weekend on a positive note as traders felt
confident the weekend was not going to show any surprises in the market. Hog
futures were mixed, with contracts through August showing minor losses and
later contracts slightly higher.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Lower       Live Equiv: $258.00 -$2.11*

   Hogs: Higher            Futures: Higher     Lean Equiv: $103.53 +$4.05**

   *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 may continue to trade sideways this holiday-shortened week as
limited cash activity is expected in the country. Packers may have already
purchased most of the cattle they need for this week, leaving them less
aggressive. Cash traded mixed last week, with Southern cattle $2.00 higher and
Northern dressed $1.00 lower. Cash activity may be similar this week. Initial
pressure today may stem from lower boxed beef prices on Friday. Choice boxed
beef declined $3.41 and select down $1.95. Consumers may have purchased most of
their near-term needs. Further weakness of boxed beef is expected this week.