DTN Early Word Livestock Comments      02/05 06:19
   Futures Volatility Expected to Remain High

   Cattle futures extended losses Tuesday. Even though tariffs with Mexico and
Canada have been put on hold, traders remain nervous. Hog futures moved sharply
higher Tuesday, regaining the losses of Monday.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Higher        Live Equiv: $242.17 -$1.04*

   Hogs: Higher          Futures: Higher        Lean Equiv: $100.41 +$0.95**

   *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:

   Feeder cattle led the charge lower Tuesday. Cash cattle have been traded
this week, but there is a strong chance cash may be no better than steady with
last week. Feedlots may be more aggressive sellers as they may feel the market
is running out of steam to the upside. It is too early to tell with the recent
pressure stemming from the uncertainty of the tariff situation and cattle
imports from Mexico resuming. Fund traders held record-long futures positions,
which may also have added to the liquidation. Packers may be less apt to bid up
for cattle this week if they sense feedlots might be anxious to sell. Boxed
beef prices were lower with choice down $1.26 and select down $2.43.