DTN Early Word Livestock Comments      10/15 06:22
   Traders Uncertain of Further Strength

   Nearby cattle contracts closed Monday with minor losses with deferred
contracts posting gains. Traders are optimistic but may remain cautious ahead
of cash trade. Hogs took it on the chin reversing the gains of Friday.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Mixed       Live Equiv: $227.23 +$1.12*

   Hogs: Higher         Futures: Mixed      Lean Equiv: $100.97 +$0.50**

   *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 were in limbo Monday as traders spent the day assessing the
market's potential this week. The weakness of grain futures provided some
support as feed prices are expected to remain reasonable. This may remove some
urgency to move cattle quickly this week, allowing feedlots to hold for no less
than steady cash and hopefully higher prices as demand for beef seems to be
improving. Boxed beef was higher Monday with choice up $2.10 and select up
$0.38. The packers have been holding back on slaughter to improve margins, but
higher beef demand needs to be satisfied. Lower feed prices and tighter
supplies of cattle leave feedlots with better leverage. Higher cattle weights
are not a problem in the current market environment.