DTN Early Word Livestock Comments      08/10 06:25
   Higher Futures Expected to Begin Week

   Live cattle futures already had higher cash prices factored in, resulting in
a mixed close Friday, while feeder cattle closed with solid gains. Hog futures
were mixed as traders were more optimistic, but cautious, over the nearby
contracts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Higher    Live Equiv: $268.48 +$0.79*

   Hogs: Higher             Futures: Higher     Lean Equiv: $108.51 +$2.56**

   *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:

   Cash cattle closed the week in line with where trading began earlier in the
week. Northern dressed cattle averaged $3.00 higher while Southern live cattle
traded $2.00 higher. This was not as high as some had hoped, but higher
nevertheless. The market struggled the last half of the week despite cash
trading higher. Boxed beef prices closing higher on Friday may provide support
to begin the week. Choice boxed beef increased $0.50, with select up $2.59.
Higher boxed beef prices will need to continue, or traders could become
disillusioned, resulting in lower futures. Feeder cattle closed higher,
regaining some of the losses of Thursday, but not enough to turn the trend
higher. The Commitments of Traders report showed fund traders reducing their
long futures position by 2,059 contracts in live cattle to a net-long of
64,966. They added 1,413 long futures positions in feeder cattle, increasing it
to a net-long of 10,400 contracts.