DTN Early Word Livestock Comments      10/03 06:17
   Cash Cattle Are Expected Higher This Week

   Livestock futures found good support Wednesday with cattle and hogs posting
triple-digit gains. The strength of hogs was limited to nearby months, trailing
off into losses for the second half of next year.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Mixed     Live Equiv:   $219.48 -$0.47*

   Hogs: Higher          Futures: Higher    Lean Equiv:   $101.03 -$1.29**

   *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:

   Cattle futures received strong buying interest Wednesday, possibly on the
idea that the port strike might be bullish for the market as beef imported will
be impacted. Exports will also be impacted, but the focus may have been on
imports. Consumers may also increase their meat buying and stock up on supply
as the COVID disruptions are still fresh on their minds. There were no cattle
traded Wednesday, but the higher futures may indicate higher cash prices this
week. Cattle futures were sharply higher despite the renewed weakness of boxed
beef. Choice cuts declined by $0.36 while select cuts declined by $1.37. The
packers do not want to pay more for cattle but feedlots expect higher prices
and are willing to hold for them even if it means they may be holding cattle
over to next week. Feeder cattle futures posted stronger gains than live
cattle, breaking above the recent chart resistance and triggering further
buying interest. There is a strong demand for feeder cattle in the country with
auction prices stronger this week.