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

   Cattle futures were under pressure due to the continued rage engulfing the
JBS plant in Greeley. Workers voted to authorize a strike if JBS does not
return to the negotiating table. Hog futures were mixed with uncertainty of the
ability of futures to continue the trend higher.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Lower     Live Equiv: $269.41 -$0.74*

   Hogs: Lower             Futures: Mixed     Lean Equiv: $101.05 +$2.27**

   *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:

   Live cattle futures gapped lower as traders turned uneasy over the unfolding
news of the potential strike at the JBS Greeley plant. A specific strike date
has not been set, but workers will strike if JBS does not return to the
negotiating table. This would be the first strike in the plant's history, but
it would significantly impact overall cattle slaughter. It is likely to be
settled, but the uncertainty did not sit well with traders. There has been
limited cash cattle trade so far, but the optimism has been trimmed with hopes
that at least steady cash with last week will hold. Boxed beef prices closed
lower, with choice down $0.77 and select down $1.72. Feeder cattle futures did
not gap lower on the open, but could not find support during the day, closing
near the lows.