DTN Early Word Livestock Comments      07/16 06:18
   Lower Cash Prices Put Further Pressure on Cattle

   Cattle futures continue to struggle Thursday as demand remains lackluster
and cash prices move lower. Hog futures show exceptional support as pork
packers remain aggressive.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Lower    Live Equiv: $273.48 -$2.43*

   Hogs:   Lower           Futures: Higher   Lean Equiv: $107.92 +$0.25**

   *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 remain in a solid downtrend Thursday as weak boxed beef
prices indicate continued slower demand. August feeder cattle closed higher
Wednesday, but did not reverse the downtrend. The seasonal weakness of beef
prices due to a slowing of demand has been greater than expected. Continued
lower boxed beef and another decline in cash may increase the liquidation of
long positions. Some dressed cattle sales on Wednesday took place from $12.00
to $15.00 lower and live sales as much as $8.00 lower. Feedlots holding out
last week did not benefit from their decision. This could increase selling
interest this week. The weakness in boxed beef continued with choice down $2.67
and select down $5.23. Futures continue a pattern of lower highs and lower lows.