MFA Agri Services of Iowa – Corydon, Leon and Lineville.

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DTN Early Word Livestock Comments      12/10 06:22
   Traders Wait for Cash Cattle Trade

   The cattle complex was mixed with traders finding little direction. The
boxed beef trade has not been robust, and cash cattle have yet to trade.
Although hog futures closed lower in all but the spot December contract, the
rebound from the lows of the day was encouraging.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed       Live Equiv: $263.75 -$0.05*

   Hogs: Higher            Futures: Higher      Lean Equiv: $102.58 +$0.93**

   *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 were biding their time on Tuesday, waiting for cash cattle to trade.
There is a sense that cash will trade steady to higher, but it is uncertain how
aggressive packers may need to be. Neither packers nor feedlots have tipped
their hand, and neither solid bids nor offers have been posted. It is uncertain
how much the winter weather will impact sales, but it will impact cattle
performance. The WASDE report did not have much impact on grain prices and will
keep feed prices in check. The estimates for beef prices and production in the
report held mixed news. Higher beef production is estimated, but cattle prices
were reduced from the previous report. Boxed beef prices were mixed with choice
up $0.14 and select down $0.57.