DTN Early Word Livestock Comments      12/26 06:48
   Choppy Livestock Trading Activity Anticipated

   Live cattle futures closed lower across the board, showing greater weakness
than feeder cattle. Usually, feeder cattle futures are the ones leading the
movement higher or lower. Hog futures were mixed, with contracts through August
higher and later contracts lower.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Lower       Live Equiv: $260.11 -$1.38*

   Hogs: Lower              Futures: Lower     Lean Equiv: $99.48 -$3.03**

   *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:

   More cash activity occurred for cattle on Wednesday, following the trend set
on Tuesday. Cattle in the South traded $1.00, with Northern dressed $2.00
higher. This may minimize the market's upside potential today. Traders may
remain cautious ahead of the weekend. Further pressure could come from another
significant decline in boxed beef. Choice boxed beef declined $1.84, with
select down $3.84. So far, the technical chart resistance has been a formidable
level and has not been penetrated, nor have the chart gaps been closed. It will
be a full trading day for futures today.