DTN Early Word Livestock Comments      10/31 06:22
   Cash Cattle Weakness May Add Further Pressure Thursday

   Cattle futures were under pressure for the second day Wednesday as further
liquidation gripped the market. Some light cash cattle trade took place at
steady to lower money. Hogs pushed to new contract highs again with December
leading the way, supported by cash and cutouts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower         Futures: Lower      Live Equiv: $230.10 -$0.83*

   Hogs: Lower          Futures: Higher     Lean Equiv: $107.46 +$0.50**

   *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 may see further weakness Thursday as the market corrects from
being overbought and due to positioning for the end of the month. Weakness in
cash cattle trade also added to the pressure as some traded $2.00 to $3.00
lower. It will be interesting to see how many will trade at steady cash and how
many at lower prices as the second half of the week progresses. Boxed beef
prices were lower with choice down $1.17 and select down $0.64. Boxed beef
prices weakening indicates slow demand. It may be temporary but will influence
cash trade. The October live cattle contract goes off the board Thursday,
leaving December as the front month.