DTN Early Word Livestock Comments      11/29 06:30
   Lighter Trading Activity Could Increase Volatility Friday

   Packers became aggressive Wednesday and did not want to wait until Friday to
accomplish business. It was a Happy Thanksgiving for feedlots as cash cattle
traded higher. Hogs did not have a positive day with cash trading lower and
cutouts falling.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher        Futures: Higher       Live Equiv: $223.00 -$0.41*

   Hogs: Lower          Futures: Lower        Lean Equiv: $94.86 -$2.21**

   *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:

   Traders had hoped cash cattle would see strength this week, but cash trading
$3.00 to $5.00 higher was beyond expectations. Packers needed to purchase
cattle to compensate for the holiday-shortened week and prepare for next week
and could not afford to hold out any longer without paying what feedlots were
asking. It will be interesting to see if selling prices will hold at these
levels or if cash trade could increase further. With lighter trading activity
Friday and a shorter trading day, futures movement could be magnified with a
higher opening expected. Boxed beef prices slipped after being strong over the
past week. Choice declined by $0.30 and select down $1.19. Futures should
remain supported and likely open higher when trading begins.