IROQUOIS BIO-ENERGY COMPANY, LLC  

DTN Early Word Livestock Comments      01/13 06:11
   Follow-Through Strength Expected

   Livestock futures pushed higher Friday with cattle reaching new contract
highs. New records continue to unfold with April nearing the $200 level. Hog
futures saw strong buying interest as traders seem to feel the low is in and
demand will improve.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher        Futures: Higher       Live Equiv: $242.33 +$2.28*

   Hogs: Steady        Futures: Mixed       Lean Equiv: $96.94 +$0.66**

   *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:

   Cattle futures opened higher Friday, then fell back, but buying interest
pushed contracts to new highs. Cash cattle traded $4.00 to $5.00 higher last
week with boxed beef continuing to trend higher. Beef demand is exceptionally
strong at these prices with choice boxed beef up $2.06 and select up $5.79.
USDA showed supportive estimates for cattle prices on the WASDE report with
quarterly steer prices from $4.00 to $6.00 higher than their December
estimates. Feedlots continue to maintain leverage over packers. This has
resulted from packers holding back on purchases in December as they tried to
back up cattle and force feedlots to sell cattle rather than add more weight.
This backfired as feedlots have been rewarded for heavier cattle as the packers
were short-bought. This has resulted in cash trading higher in an impressive
way and it may not be over yet.