DTN Early Word Livestock Comments      11/19 06:18
   Cattle Futures May Struggle to Find Support

   Cattle futures could not generate consistent buying interest on Tuesday,
resulting in a mixed close. Traders are uncertain of the impact of the
reduction in tariffs on some countries announced last week and the impact on
beef imports. Hogs found footing earlier Tuesday but succumbed to selling
pressure with contracts falling to new lows.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower             Futures: Mixed     Live Equiv: $270.39 +$0.50*

   Hogs:   Higher            Futures: Mixed     Lean Equiv: $101.50 -$1.62*

   *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 were hesitant to buy into the cattle market aggressively Tuesday.
The reduction of tariffs on certain countries, announced on Friday, has created
uncertainty about the potential impact on beef imports. Along with that
uncertainty is the upcoming Cattle on Feed report, scheduled for release
Friday. The report is not expected to show any substantial increase in cattle
numbers, if any at all, but the uncertainty may keep futures choppy the rest of
the week. Traders have been waiting for the resumption of the Commitments of
Traders report to see the position of fund traders. A report will be released
Wednesday, but it will not be up to date and will reflect traders' positions as
of Sept. 30. It will take until the end of January for these reports to become
timely again. The report will be somewhat meaningless as it plays catch-up.
Boxed beef prices were mixed with choice up $1.54 and select down $1.35.