DTN Early Word Livestock Comments      10/26 06:00
   Lowest September Cattle Placements and Marketings

   The Cattle on Feed report brought the lowest placements and marketings for
the month of September in 30 years, since the series began in 1996. Total beef
and pork inventories are lower than September's Cold Storage report.

Robin Schmahl
DTN Contributing Analyst

                        Futures     Equiv
Cattle:     Higher      Higher      Live       $240.42      -1.33 *
Hogs:       Lower       Steady      Lean        $80.86      -1.26 **

   *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 October Cattle on Feed report was released Friday afternoon, and it's
expected to bring some fireworks to the futures market Monday. Total cattle on
feed was 11.37 million head, 100% of last year. Placements were at 1.777
million head, only 88% of last year. Feeders should really react to such a
large drop from last year. Fed cattle marketed were reported at 1.524 million
head, 93% of the total from last year. Heifer inventories were 4.3 million
head, down 1% from last year. The Cold Storage report was also released Friday
afternoon with total beef stocks down 5,051,000 pounds from August, and down
2,954,000 pounds from one year ago.