DTN Early Word Livestock Comments      09/15 06:25
   Further Weaknesses Expected in Cattle Futures Monday

   Lower cash cattle prices and weakness in boxed beef put pressure on cattle
futures Friday. After a valiant attempt by traders to turn the market higher,
the downtrend may resume. Hogs struggled in the nearby months as cash faltered.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Lower      Live Equiv: $289.36 -$0.69*

   Hogs: Higher            Futures: Mixed     Lean Equiv: $120.48 +$1.34**

   *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 weakness Friday in the cattle complex sets a near-term negative tone to
the market. There was a valiant attempt to resume the uptrend, but further
weakness in boxed beef and lower cash cattle prices may not be sufficient to
provide support. Cash cattle traded lower with cattle in the South trading
$2.00 lower and Northern dressed cattle $5.00 to $8.00 lower. This could result
in further weakness in cash this week as feedlots now face the decision of
whether to sell heavier-weight cattle before further weakness develops or take
a chance and hold for higher prices. The weakness in boxed beef prices Friday
may carry weight on that decision, with choice down $0.75 and select down
$1.51. The Commitments of Traders showed the fund traders adding 742 live
cattle futures contracts, increasing their net-long position to 127,272. They
reduced their net-long futures position in feeder cattle by 2,334 contracts to
25,310.