DTN Early Word Livestock Comments      10/16 06:25
   Traders Wait For Cash Cattle Trade

   Cattle futures were in a tug-of-war on Wednesday, eventually closing mixed.
Traders are waiting to see what cash will do. If cash is steady or higher,
support will be maintained. Hogs had a strong beginning to Wednesday, but early
gains were trimmed, resulting in minor gains for the day.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher           Futures: Mixed      Live Equiv: $266.08 +$0.72*

   Hogs: Lower              Futures: Mixed     Lean Equiv: $108.16 -$1.80**

   *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 traded both higher and lower Wednesday with the market in a
tug-of-war. The October through February contracts were able to close at new
highs. Traders realized futures are carrying a premium to the current asking
prices from feedlots, and some liquidation took place, leaving prices mixed.
However, if cash trades higher, as expected, support should be maintained under
the market. Boxed beef prices were mixed, with choice up $2.06 and select down
$1.39. The mixed boxed beef prices will have little impact on trade, as beef
demand remains strong and packers will have to purchase what is needed to
maintain slaughter. Futures are overbought, but that will not trigger
liquidation unless some aspect of the market turns bearish, and then it may
only be short-lived.