DTN Early Word Livestock Comments      09/14 06:15
   Livestock Traders May Turn More Optimistic

   Cattle futures were supported into the weekend by higher cash trade. Packers
stepped up aggressively, raising bids to purchase cattle. Packer margins
improved. Hogs posted triple-digit losses, falling below support as cash and
cutouts flounder.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Higher      Live Equiv: $275.45 -$1.02*

   Hogs: Lower            Futures: Mixed     Lean Equiv: $96.83 -$1.99**

   *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 posted a strong close for the week with feeder cattle leading
the charge. Futures have closed at the highest level since Aug.12. Cash cattle
traded higher last week, solidifying the recent strength in futures. The
bearish news has been digested, with traders feeling the price weakness since
July has been overdone. Cash traded higher last week, with Northern dressed
cattle averaging $5.00 higher and Southern live cattle seeing bids of $226 late
on Friday, with final results to be posted today. There has been no indication
that any of the duty-free 300,000 metric tons of beef have been imported to
date. The logistics of importing this amount over 90 days are slim, and the
likelihood of it reducing beef prices is questionable. Boxed beef prices on
Friday were mixed, with choice down $2.43 and select up $1.07. The Commitment
of Traders report showed fund traders as net buyers of 54 live cattle
contracts, increasing their net long position to 48,905 contracts. Fund traders
were net sellers of 988 futures contracts, reducing their net long position to
7,448.