DTN Early Word Livestock Comments      08/12 06:15
   Cash Uncertainty Increases Caution

   Cattle futures moved higher early, but then eroded slowly throughout the
day. The market has been unable to find solid footing. Hog futures took away
much of the gain seen on Monday. The market remains sideways.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Mixed      Live Equiv: $271.37 -$0.28*

   Hogs: Higher             Futures: Mixed      Lean Equiv: $108.49 -$0.33**

   *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:

   A solid level of support has not developed in the cattle market. Traders
have not been able to feel confident in the market's ability to move back
toward the highs. The past two weeks of lower cash cattle trade and packers
purchasing cattle for deferred delivery indicate that cash may be steady at
best this week. The feedlots certainly would like to receive higher prices, but
holding for higher prices rather than selling may not provide much benefit in
the current market. Boxed beef prices were lower, with choice only decreasing
$0.11 after the large increase on Monday. Select declined $1.04, adding to the
weakness from Monday. Both the bullish and bearish market fundamentals have
been factored in, with traders waiting to see a change to provide direction.