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DTN Early Word Livestock Comments      02/20 06:20
   Hog Futures May Be Influenced By Uncertainty

   The cattle complex closed higher Friday and looks to be making another
attempt at closing the chart gaps in live cattle. Hogs were able to hold as
demand looked good with cash and cutouts higher.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Higher     Live Equiv:   $219.11 +3.60*

   Hogs: Higher           Futures: Higher     Lean Equiv:   $99.89 +$3.21**

   *Based on formula estimating live cattle equivalent of gross packer revenue.
(The Live Cattle Equiv. 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:

   Cash cattle traded lower for the week but that did not deter traders from
supporting futures. Cash cattle traded $1 to $2 lower last week, but the
tighter cattle numbers trumped the lower trade. After the big jump in cash the
previous week, the decline last week still showed the market advancing. Traders
know a large number of cattle are not going to be found somewhere that have not
been accounted for. Boxed beef was higher Monday with choice up $0.89 and
select up $0.74. There was no cash trade on Monday as usual. The Commitments of
Traders report Friday showed funds increasing their long positions by 7,066
contracts to a net-long position of 46,638 futures contracts. Funds increased
their long positions by 1,598 contracts to a net-long position of 6,554 futures
contracts.
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