DTN Early Word Livestock Comments      09/15 06:03
   Optimism Is Alive and Well for Cattle

   Cattle and hog futures moved in opposite directions with differing
fundamentals. Cash cattle wer higher last week, with at least steady prices
expected this week, while cash hogs remained under pressure.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed      Live Equiv: $275.43 -$0.02*

   Hogs: Higher           Futures: Mixed     Lean Equiv: $96.81 -$0.02**

   *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 opened higher and maintained the strength through the close.
The October live cattle contract moved back to the highest level since Aug. 12.
Feeder cattle showed similar price movement, with the September contract moving
to the highest close since Aug. 11. Higher cash trade last week is fueling the
strength as the packers stepped up to the plate as the feedlots held for higher
prices. Southern live cattle trade took place late last week, with cash as much
as $4.00 higher. October futures still carry a discount to cash; there is still
sufficient time to adjust higher if cash remains strong. Boxed beef prices
remain lackluster, with choice down $0.63 and select up $1.42. The packers will
fight to maintain margins.