DTN Early Word Livestock Comments      07/17 06:17
   Traders Wait For Cash Cattle Action

   The livestock complex showed gains across the board Wednesday with feeder
cattle leading the way. The strength in cattle defied the weakness in boxed
beef. Hog futures found support Wednesday after the liquidation phase
concluded.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed        Live Equiv: $271.60 -$3.39*

   Hogs: Lower            Futures: Higher        Lean Equiv: $120.70 +$0.72**

   *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:

   The interest in cattle continued Wednesday with new contract highs in live
cattle as futures hold a discount to cash. The optimism for cash has turned a
bit more friendly due to the surge in futures. However, the weakness of boxed
beef is cause for concern. Boxed beef prices showed substantial weakness, with
choice down $4.87 and select down $4.67. The weakness is getting the attention
of packers. This may indicate consumer demand may have peaked for the time
being. Packers will want to preserve their margins and will not be so willing
to write large checks this week. However, the tight beef supplies may require
higher prices to purchase the required cattle to satisfy demand.