DTN Early Word Livestock Comments      10/14 06:24
   Choppy Trading Activity Expected Monday

   Live cattle and hog futures diverged on Friday. Cash cattle did not see
further gains in price levels. The change in cash hogs was not posted but did
not hinder traders from remaining supportive of futures.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Mixed       Live Equiv: $226.11 +$0.22*

   Hogs: Steady         Futures: Mixed      Lean Equiv: $100.47 -$0.40**

   *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:

   Hopes for higher cash cattle trade on Friday did not materialize with prices
remaining at Thursday's levels. Southern cattle traded $1.00 higher for the
week with Northern dressed cattle at steady money. Futures had it already
factored in, leaving live cattle futures drifting lower. Feeder cattle futures
closed higher in deferred contracts, likely as a reaction to lower grain prices
and expected continued lower grain prices based on the WASDE report. The WASDE
report was supportive of beef prices for the rest of this year and next year.
These are just estimates and will change from month to month based on the
strength or weakness of prices and did not have much influence on Friday's
trading activity. Boxed beef prices were mixed with choice up $1.27 and select
down $2.01. The Commitments of Traders report showed funds added 10,076 long
futures in live cattle, increasing their net-long position to 77,964 contracts.
They added 1,646 futures positions in feeder cattle, bringing their net-long
position to 6,449 contracts.