DTN Early Word Livestock Comments      01/28 05:55
   Month-End Positioning May Dominate Livestock Futures

   The only contract closing higher Thursday in the livestock complex was
January feeder cattle and that was because it was the last trading day as it
will settle to the index. The rest of livestock contracts closed lower with
feeder cattle and hogs keeping close pace with one another. It seems like end
of the month positioning might be the dominating factor for hogs.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady. Futures: Mixed. Live Equiv: $215.73 -$0.46*

   Hogs: Steady. Futures: Lower. Lean Equiv: $105.33 +$3.59**

   *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:

   With cash business mostly finished for the week, traders had little to go on
as far as market news was concerned. Activity Friday and Monday may be more
affected by it being the end of the month. June and August live cattle just
could not muster sufficient strength to close the chart gaps that are ever so
close to being filled. If they are filled, it could result in renewed selling
pressure due to steady to $1.00 lower cash this week and continued weakness of
boxed beef. Choice cuts were down $0.35 with select down $0.62. Weekly export
sales of beef were neutral at 14,300 mt. January feeder cattle are now off the
board with March taking over as the lead month, which showed the greatest
pressure.