DTN Early Word Livestock Comments      10/30 06:19
   Cattle Contracts May See Further Pressure Wednesday

   Cattle futures closed lower Tuesday and hog futures closed higher. There was
little fundamental reason for cattle to be under pressure other than the
weakness of boxed beef. Hogs continue to enjoy good demand and packer
aggressiveness.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Mixed       Live Equiv: $230.93 -$2.06*

   Hogs: Higher          Futures: Mixed       Lean Equiv: $106.96 -$0.88**

   *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 tried to push through resistance but selling pressure
pushed futures lower Tuesday. This could be the beginning of a price correction
as further weakness Wednesday could trigger further liquidation. Cash cattle
did not trade Tuesday and are not expected to trade Wednesday. The uncertainty
of demand and the recent weakness of boxed beef have traders anticipating no
better than steady cash this week. Boxed beef was lower Tuesday with choice
down $2.89 and select down $2.22. Feedlots may be more interested in selling
even at lower prices if further selling occurs in cattle futures Wednesday or
Thursday. Feeder cattle took the weakness more personally with contracts
posting greater losses despite good demand for cattle and calves in the country.