DTN Early Word Livestock Comments      09/12 06:23
   Traders Hope For Better Cash Trade Thursday

   Livestock futures closed higher in nearly all contracts Wednesday. Cattle
closed higher after spending some time in negative territory despite
fundamental weakness. Hog futures had some unwinding of spreads supporting
nearby contracts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower        Futures: Mixed       Live Equiv: $225.46 -$0.98*

   Hogs: Lower         Futures: Lower      Lean Equiv: $99.02 -$1.89**

   *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 spent some time in negative territory Wednesday, but
ultimately found the strength to close higher. Traders seemed to lack the
conviction to establish long positions as there was uncertainty over the
potential for sustained higher prices. The upside price potential may be
limited as there were a few cattle sales in the South at $1.00 lower. This may
have set the stage for cash trade this week with business expected to increase
Thursday. Boxed beef prices showed further weakness with choice down $0.87 and
select down $2.63. Feeder cattle showed greater strength, likely due to less
trading volume than live cattle futures. Auction prices for various weight
categories are mixed. USDA will release the WASDE report Thursday containing
their estimates for beef production and prices.