DTN Early Word Livestock Comments      11/13 06:02
   No Cash Trade for Fed Cattle

   We have made it to Friday with no cash trade reported for fed cattle this
week. Who will give in, will it be the packer or the producer?

Sarah Jungman
DTN Contributing Analyst

                        Futures     Equiv
Cattle:     Higher      Steady      Live       $264.87     -$1.09 *
Hogs:       Lower       Lower       Lean        $75.90     -$0.20 **

   *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:

   Live cattle futures were mixed Thursday with a lack of news to trade. In the
last two weeks, the headlines continuously discussed the surplus of market
ready cattle in the North and how the packer holds all the cards in current
negotiations. This week's cash trade has been extremely quiet. Given the recent
weakness in negotiated cash prices, Friday's trade could be a day of catch up
for packers to get their needs purchased at whatever it takes, or they may
decide to wait out the producer to get a cheaper price next week. Feeder cattle
strength Thursday was supported by a higher Feeder Cattle Index. Sale barns
across the country are seeing buyers willing to pay more for Weight 1 steers
than previous weeks.