DTN Early Word Livestock Comments      09/20 06:23
   Mixed Livestock Futures Expected Ahead of Cattle on Feed Report

   Aggressive buying took place in the cattle complex with feedlots holding out
in anticipation that the packers will pay more for cattle this week. Hog
futures closed mixed with another day of limited price movement.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Mixed       Live Equiv: $220.26 -$1.26*

   Hogs: Lower          Futures: Mixed      Lean Equiv: $100.90 +$0.40**

   *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:

   Cash cattle have not yet been traded. This has provided traders with the
optimism for higher cash. Feedlots are holding out with the expectation that
packers will step up to procure the cattle they need. The delay of cash trading
until Friday generally takes place the week of the Cattle on Feed report. The
increase in futures adds to the resolve of the feedlot while the continued
weakness of boxed beef may limit what packers will pay. Boxed beef prices were
lower with choice down $1.82 and select down $1.49. Futures may trade mixed
today as traders position themselves ahead of the Cattle on Feed report. The
average estimate of cattle on feed on September 1 is 100.7% of a year ago with
the range of estimates from 100.1% to 101.3%. August placements are estimated
at 98.5% with a range of 93.5% to 102.3%. Cattle marketed in August are
estimated at 96.5% with a range of 96.0% to 97.5%.