DTN Early Word Livestock Comments      10/29 06:04
   Cash Trade Pressure Cattle Markets

   Packers continue to find cattle to buy and successfully pushed cash trade
lower Wednesday. Considering that they didn't buy much last week, traders are
surprised at the weaker prices negotiated.

Robin Schmahl
DTN Contributing Analyst

                        Futures     Equiv
Cattle:     Steady      Higher      Live       $272.33     -$2.51 *
Hogs:       Steady      Steady      Lean        $79.22     -$0.64 **

   *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:

   Feeder cattle and live cattle contracts were due for a correction with the
speed the market has climbed recently. For fed cattle, the cash trade has the
market under pressure as it appears packers are finding plenty of cattle to
purchase despite what is expected to be tight supply. Iowa, Minnesota and
Nebraska traded $222-$245 live and $348-$365 dressed Wednesday. Futures held
current technical support levels, so traders are not concerned with Wednesday's
market selloff.