DTN Early Word Livestock Comments      11/05 06:12
   Livestock Futures May Find Little Direction Tuesday

   Trader buying interest remained subdued Monday, leaving futures lower for
cattle and mixed for hogs. There may be little to generate buying interest in
cattle until cash trade takes place. Hogs are balancing technical traders
nervous over the record-long positions and packer interest.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower         Futures: Mixed      Live Equiv: $228.39 +$0.73*

   Hogs: Higher         Futures: Mixed     Lean Equiv: $109.92 +$0.04**

   *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 drifted lower through the day as traders did not have much
fundamental news to provide direction. It may be difficult for cattle futures
to regain the losses of the past two weeks. Traders may be looking over their
shoulders at what took place a year ago when futures fell substantially during
November and will remain cautious. There will be no cash cattle trade Tuesday
as packers and feedlots have little reason to do business this early in the
week. There is concern the cash prices will not perform much better than last
week. The packers continue to hold the line on slaughter, attempting to improve
margins. Boxed beef prices showed some strength Monday with choice up $0.57 and
select up $2.13. Feeder cattle are attempting to build support. Prices at
auctions are variable and may remain that way through the end of the year.