DTN Early Word Livestock Comments      09/13 06:24
   Hope Increased For Steady Cash Cattle Trade Friday

   Cattle futures opened higher and uncovered increasing buying interest
throughout Thursday. Traders turned more hopeful of steady cash trade
developing through the end of the week. Hog futures struggled most of the day
with contracts closing on the Thursday's lows.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Mixed       Live Equiv: $225.63 +$0.17*

   Hogs: Lower          Futures: Mixed      Lean Equiv: $100.29 +$1.27**

   *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:

   Cattle futures have had two days of strength as traders became more
optimistic over the potential for cash cattle to trade steady for the week. On
Wednesday, some cattle traded $1.00 lower in the South with Thursday showing
some trade developing at steady money with last week. That prompted traders to
become more optimistic. The weekly export sales report provided little support
to the market with sales 31% below the previous week. The WASDE report was not
very supportive as the USDA lowered its estimates for steer prices for the next
four quarters. Feedlots may gain some confidence to hold for no less than
steady cash due to the strength of the futures market over the past two days.
Boxed beef prices were mixed with choice down $0.18 and select up $1.26.