DTN Early Word Livestock Comments      10/21 06:13
   No Cash Cattle Trade Expected Monday, But Pork Packers May Be Buying Hogs

   The livestock complex closed higher Friday in all contracts as traders
remained optimistic. Continued strength in the cash cattle market resulted in
triple-digit gains while hog futures were able to maintain gains.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Mixed       Live Equiv: $231.99 +$0.83*

   Hogs: Higher          Futures: Mixed      Lean Equiv: $102.48 +$0.07**

   *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:

   Live cattle futures moved higher Friday to mirror underlying cash. Southern
live cattle traded steady to $1.00 higher last week with Northern dressed
trading at steady money. This renewed the optimism of traders for the time
being. Boxed beef prices continued to provide support with choice up $1.39 and
select up $0.68. Demand is good and the packers are trying to improve margins
by slightly reducing the slaughter pace. However, higher cattle weights
continue to provide sufficient beef to the market. The weekly export sales
report provided little excitement as sales were 3% below the previous week.
Cash cattle trade may not occur until Friday as the Cattle of Feed report will
be released and traders will want another week of boxed beef prices under their
belts. The Commitments of Traders report showed funds adding 10,337 live cattle
futures contracts, bringing their net-long position to 88,301 contracts. They
added 1,208 futures contracts in feeder cattle increasing their net-long
futures position to 7,657 contracts.