DTN Early Word Livestock Comments      07/23 06:18
   Mixed Cattle Futures as Traders Position Ahead of the Report

   Cattle futures plummeted on Wednesday after the slight bounce on Tuesday.
Packers are bidding lower as expected. Hog futures continued to find support
with higher highs and higher lows on Wednesday. The uptrend remains intact.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Mixed    Live Equiv: $267.94 -$2.46*

   Hogs: Lower            Futures: Mixed    Lean Equiv: $110.05 -$1.32**

   *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:

   The bottom fell out of cattle futures as selling emerged after the bounce on
Tuesday. Feeder cattle fell to support set in early June. Continued weakness
could trigger further liquidation. Some positioning may surface ahead of the
report. Packers have lowered their bids and may hold as they already have some
cattle forward purchased. Cash business is not expected to surface until late
Friday, with feedlots hoping for some good news from the Cattle on Feed report.
However, with the current market trend, it may not make any difference in the
short term. Boxed beef prices took a hit on Wednesday with choice down $3.41
and select down $3.66. The Cattle on Feed report will be released on Friday.
The average trade estimate is for on-feed numbers as of July 1 at 102.2% with a
range of 101.1% to 103.3%. Placements in June at 98.8% with a range of 93.7% to
$106.0%. Marketings in June at 97.0% with a range of 94.9% to 98.0%.