DTN Early Word Livestock Comments      09/09 06:20
   Livestock Futures May See Further Pressure Monday

   Cattle took it on the chin Friday as support could not be found. The
weakness of cash kept selling pressure on the futures market. Hogs showed
continued bear-spread trading as the optimism for nearby contracts has waned
and the uptrend has been broken.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower        Futures: Mixed       Live Equiv: $226.85 -$1.17*

   Hogs: Lower         Futures: Mixed       Lean Equiv: $102.21 +$1.26**

   *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:

   Lower cash cattle trade for the week put pressure on the market. Packers
continue to purchase cattle for immediate needs and deferred delivery, leaving
them in a strong position. Cash cattle traded $2.00 lower for Northern dressed
and Southern live last week. Feedlots needed to move cattle and lower prices
were taken to avoid further losses. Boxed beef prices continued to weaken with
choice down $2.10 and select down $0.66. Cattle futures may move to the lows of
a few weeks ago before finding some strong technical buying interest.
Fundamentally, the market could break below that level. The Commitments of
Traders report showed the funds as net buyers of 1,007 live cattle futures,
bringing their net-long positions to 42,663 contracts. The funds were net
buyers of 2,305 feeder cattle futures contracts, reducing their net-short
positions to 1,262 contracts.