We expecttrade to continue operating at a discount to fair value but a lower carryout would still be supportive.

The new carryout numbers if seen as estimated would hint at fair values of 485 and 1050. We expect

trade to continue operating at a discount to fair value but a lower carryout would still be supportive.

Cattle – NE cash trades mostly 203, KS/TX bidding 200, BB and feeder index both continue higher

↔Yesterday’s PM BB was choice +2.17 select +1.46 packer BE at 202.92, packer cushion $6.35

↑ Drovers talked a border opening Jan 20 on Wednesday, Reuters specified the USDA has no current

date set at Jan 20 yesterday, the USDA themselves have made no direct comments themselves

↑ Cash traded mostly 203 in NE and IA, KS/TX finished yesterday with bids at 200

↑ The feeder index and BB both continue higher adding daily support

↔Right now the order of largest influence to least influence would be: 1) Mexico border headlines 2)

The feeder index 3) Boxed beef/cash trades and a distant 4) Showlist

↔Cash taking out $200 does not mean we should expect a new fast run higher but it does take out

resistance that had slowed this market twice before

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