MFA Incorporated 201 Ray Young Drive Columbia, MO 65201 573-874-5111

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DTN Early Word Livestock Comments      01/15 06:16
   Traders Are Optimistic Over Pork Demand

   Live cattle futures showed minor losses Tuesday as traders chose not to be
aggressive buyers until cash provides direction. The January contract in feeder
cattle led the way as the price spread widened. Hogs found solid buying
interest with new contract highs in June and later contracts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher        Futures: Mixed       Live Equiv: $243.29 +$0.06*

   Hogs: Higher         Futures: Higher       Lean Equiv: $95.79 +$0.01**

   *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 are waiting for cash to provide direction. Higher boxed beef prices
indicate strong demand, lending to the potential for packers to pay more for
cattle. The anticipation has been for stronger cash, but at these lofty levels
traders remain cautious. The decline in live cattle was offset by the strength
of feeder cattle. The January contract gained $2.25, pushing it to a record
high. There is no letup in demand for feeder cattle in the country as buyers
need to buy or go without and pay higher prices next week. The price spread of
$76.70 between the February live cattle and January feeder cattle contracts is
unprecedented. Boxed beef prices were higher with choice up $0.51 and select up
$3.34 moving the price spread to $15.78.