DTN Early Word Livestock Comments      08/20 06:20
   Weakness Continues to Dominate in Livestock Markets

   Cattle futures tried to establish support early on Wednesday, but buyers
were unable to hold onto the gains. Light cash activity took place at lower
prices. Hog futures had a limited price swing but closed in positive territory.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Mixed      Live Equiv: $286.50 +$1.49*

   Hogs: Lower             Futures: Mixed      Lean Equiv: $104.62 -$1.54**

   *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:

   Cattle futures are struggling to find support. Packers have been able to
purchase cattle at lower prices over the past few weeks, and it appears they
may be able to do so again this week. Some light trade took place on Wednesday
at lower prices, with Northern dressed at $355 and Southern live at $225, and
were purchased for deferred delivery. Packers have finally seen their margins
move into positive territory due to lower cash prices and higher boxed beef
prices. Boxed beef prices closed mixed, with choice up $3.84 and select down
$2.21. The Cattle on Feed report will be released on Friday after the market
closes.