DTN Early Word Livestock Comments      09/26 06:15
   Hogs and Pigs Report Estimates

   Cattle struggled most of Monday with some contracts closing slightly higher
at the end. The Cattle on Feed report did not provide enough support to push
futures higher, but it did provide support. Hog futures spent time on both
sides of the market but closed higher supported by stronger cutouts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Mixed    Live Equiv:   $221.96 -$0.91*

   Hogs: Higher         Futures: Higher    Lean Equiv: $105.94 +$1.60**

   *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:

   Cattle futures traded the neutral to slightly negative Cattle on Feed report
Monday, resulting in mixed live cattle and lower feeder cattle futures. The
report was positive compared to the previous year with tighter cattle numbers,
but slightly negative due to actual numbers compared to estimates. The numbers
compared to a year ago are what is more important, longer term. Packers may not
be too aggressive this week as they bought quite a few last week, but they will
need to try and keep ahead. No less than steady cash is expected. Boxed beef
prices were mixed with choice down $1.85 and select up $0.02. The storage
report showed total beef supply at 421.6 million pounds, up 11.2 million pounds
from July, but 18% below a year ago.