DTN Early Word Livestock Comments      02/10 06:15
   Uncertainty May Limit Volatility in Livestock Markets

   Cattle futures did not react negatively to the signing of the agreement with
Argentina, making it possible for more beef imports into the U.S. This was just
a formality of what had been proposed earlier. Hog futures diverged with
pressure on the nearby contracts. Traders were uncertain over the continued
upside potential.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed     Live Equiv: $270.74 -$0.60*

   Hogs: Higher           Futures: Higher     Lean Equiv: $101.61 +$2.06**

   *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:

   The cattle market had already factored in more beef from Argentina, as the
signing of the agreement was only a formality of what had already been
proposed. The extra beef that is imported may not have much impact on the beef
price anyway. High beef prices are the result of tight cattle supplies, and
those supplies will not change much anytime soon. Demand for beef remains
strong, and packers do not have an abundance to choose from. Packers were able
to purchase some for deferred delivery last week, but not enough to reduce
their need for cattle this week. Boxed beef prices were mixed, with choice down
$1.57 and select up $0.82.