DTN Early Word Livestock Comments      12/01 06:15
   Livestock Traders May Exercise Caution on the Open

   Cattle rebounded sharply after the spike bottom that was put in on Tuesday.
Short covering through the holiday and the end of the month fueled the rally.
Hog futures closed mixed on Friday as traders assessed the market's fundamental
strength.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Mixed         Live Equiv: $267.01 -$1.71*

   Hogs: Lower            Futures: Mixed        Lean Equiv: $100.36  $0.00**

   *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 had a positive close to a holiday-shortened week. The rebound
was technical in nature and in reaction to a statement made earlier in the week
by Secretary of Agriculture Brooke Rollins. Southern cash cattle traded as much
as $4.00 lower for the week after some late business was accomplished in Kansas
at less of a loss than earlier in the week. Northern dressed cattle maintained
a sharp loss of as much as $13.00 lower. Boxed beef prices were lower with
choice down $1.46 and select down $4.46. Continued weakness in boxed beef is
expected to unfold, which would have an impact on the upside potential for
cattle prices. The exuberance of the statement from the Secretary of
Agriculture may run its course, as the statement that there would be a staged
reopening of the Mexican border for imports of cattle whenever it reopens is
logical and in line with the previous time it was reopened. Traders likely have
digested the statement and will turn their focus back to the fundamentals.