DTN Early Word Livestock Comments      09/25 06:10
   Short-covering Likely Ahead of the Weekend

   Cattle futures were under pressure for no specific reason other than the
recent weakness of boxed beef prices and reduced export sales. Hog futures
declined ahead of the Quarterly Hogs & Pigs report as there was concern it
could be a negative report.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed      Live Equiv: $275.42 -$0.63*

   Hogs: Lower           Futures: Higher     Lean Equiv: $93.13 -$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:

   Live cattle futures showed pressure on Thursday as the market continued its
one-day up and one-day down pattern. The cash market saw limited trade on
Thursday following the lead of steady cash, which developed on Wednesday.
Feedlots hoped to see stronger boxed beef prices and higher futures to provide
leverage on the packers, but that has not been the case. The packers are
unlikely to bid up for cattle due to the weakness of boxed beef and light cash
trade already having developed at steady cash with last week. Boxed beef prices
were lower on Thursday, with choice down $1.19 and select down $0.24. The
packers continue to reduce slaughter in the hopes of improving margins. Feeder
cattle futures were lower, but held up considerably well with a higher high and
higher low despite the weakness.