DTN Early Word Livestock Comments      10/28 05:50
   Live Cattle Come to Life

   Live cattle futures held gains and closed higher. The strength of cash had
been factored in on Wednesday, leaving little need catch up. Feeder cattle were
not as fortunate being unable to turn the trend higher. Hogs just could not
uncover any buying interest.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher   Futures: Higher   Live Equiv:   $211.86 -0.73*

   Hogs:  Lower    Futures: Mixed    Lean Equiv:  $100.44 -0.85*

   *Based on formula estimating live cattle equivalent of gross packer revenue.

   (The Live Cattle Equiv. 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 benefited from higher cash again Wednesday. Dressed
cattle in the North traded $4.00 higher than last week while Southern cattle
traded $1.00 to $2.00 higher. This certainly gives feedlots confidence to use
the market to their advantage and hold for higher prices. Maybe the premium to
December and February contracts are attainable if packers continue to need
cattle to keep demand satisfied. It is surprising packers were as aggressive as
they were early in the week and despite the weakness of boxed beef. Choice cuts
were down $1.13 with select cuts down $0.85. Weekly exports will either support
the trend higher or limit price potential.