DTN Early Word Livestock Comments      09/22 06:12
   Mixed Trade Ahead of Cattle on Feed Report

   The livestock complex was under substantial pressure Thursday with
triple-digit losses in nearly all contracts. Cattle likely were under pressure
from steady cash. Hogs were likely under pressure from profit-taking due to the
large increase in futures Wednesday.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Mixed    Live Equiv:   $221.57 +$0.09*

   Hogs: Lower          Futures: Mixed    Lean Equiv:  $105.86 -$0.47**

   *Based on formula estimating live cattle equivalent of gross packer revenue.
(The Live Cattle Equiv. 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:

   It seems the disappointment of cash cattle trading at steady money was not
what traders wanted to see. Premium had been built into the market in the
anticipation cash would again trade higher. Northern dressed cattle traded at
$292 with Southern live cattle trading at $183. There was enough cash activity
to likely set the stage for cash trading Friday. Futures activity may be
influenced by traders positioning ahead of the Cattle on Feed report to be
released at 2 p.m. CDT Friday. Estimates for the report are for on-feed numbers
as of Sept. 1 at 97.6% of a year ago. Placements in August are estimated at
93.6% with marketings at 94.4%. Weekly export sales were not exceptional at
13,700 metric tons (mt) and not enough to support the trade. Boxed beef finally
showed some strength with choice up $0.67 and select up $0.32. Feeder cattle
continue to remain in strong demand with higher prices paid at auctions.