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DTN Early Word Livestock Comments      10/06 06:21
   Strong Export Sales Needed for Support

   Livestock futures were higher across the board Wednesday, fueled by optimism
and rebounding from the sell-off that should not have taken place. Cattle are
expected to trade higher this week with early indications pointing to that.
Hogs rebound as prices needed to correct after the strong cash price.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher     Futures: Higher      Live Equiv   $183.21 -$1.06*

   Hogs: Steady       Futures: Higher      Lean Equiv:  $107.13 +$1.00**

   * based on formula estimating live cattle equivalent of gross packer
revenue. (The Live Cattle Equiv. 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:

   Livestock showed strength even with the Dow significantly lower during the
early part of Wednesday. Optimism over higher cash cattle overrode the weakness
of financial markets. However, the weakness of the Dow did not continue
throughout the day. Traders remain cautious over ongoing demand due to
inflation. There was some light cash trade yesterday $1.00 higher. Cash trading
is expected to be active Thursday as packers will need to step up to the plate
to purchase what they need for the week. So far, feedlots have not been willing
to let cattle go at steady prices with last week. Boxed beef did not continue
the streak of higher prices and turned lower Wednesday with choice down $0.98
and select down $2.69. There is some apprehension over the level of export
sales that will be seen on the report today and the impact it could have on the
market.
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