DTN Early Word Livestock Comments      12/08 06:12
   Cattle Futures May See Initial Pressure

   Cattle futures closed higher Friday with December live cattle leading the
way due to the strong cash prices. The market has been adjusting to the
fundamentals. Hog futures gained ground, pushing through and closing above
technical resistance.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Lower       Live Equiv: $263.68 -$1.12*

   Hogs: Lower            Futures: Higher      Lean Equiv: $102.53 +$3.06**

   *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:

   Cattle futures were supported last week by the potential for higher cash
cattle trade. Traders were rewarded for their assessment by substantially
higher cash prices. Southern live cattle traded $7.00 higher with Northern
dressed cattle trading as much as $16.00 higher. The strong price rally seen
over the past two weeks may have run its course, as lower boxed beef prices and
the announcement on Saturday that President Trump has ordered his
administration to examine price-fixing and the impact of foreign ownership in
the food supply chain. The last time he talked about looking into the
activities in the beef industry, the market fell. Even though the beef industry
was not mentioned directly this time, it may have a similar impact. Cash cattle
jumped higher last week, but further weakness in boxed beef may limit further
upside potential. Choice boxed beef declined $1.32, with select down $2.93,
adding to an already negative week for boxed beef prices.