DTN Early Word Livestock Comments      02/26 06:11
   Cattle Markets Grapple With Uncertainty

   Traders gained a little more confidence on Wednesday to move the market
higher. However, there is concern over the potential for cash trade. Hogs were
able to post minor gains as support remains as demand improves.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed     Live Equiv: $276.97 +$1.11*

   Hogs: Lower             Futures: Mixed     Lean Equiv: $103.40 +$0.67**

   *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 turned a bit more aggressive in cattle futures on Wednesday. The
cloud over the market is whether there will be a strike at the JBS Greeley
plant. There is hope that a last-minute settlement will take place; otherwise,
it could have an impact on the cash cattle trade. There has been no cash trade
so far this week, and it is doubtful that trade will take place today. Boxed
beef prices were higher, with choice up $1.80 and select up $1.06. Packers
continue to reduce slaughter. This should support boxed beef prices, but the
reduced slaughter could also be the result of tight cattle supplies. The other
aspect of that is that cattle weights are heavy, which somewhat makes up for
the tighter cattle supplies.