DTN Early Word Livestock Comments      10/17 06:28
   Higher Cash Cattle Trade Expected Friday

   There seems to be no stopping the rise in cattle futures. Price weakness is
short-lived and confined to the intraday. Live cattle posted new contract highs
again Thursday. Hog futures continued to struggle, still unable to find
support.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher           Futures: Mixed      Live Equiv: $265.85 -$0.23*

   Hogs: Lower              Futures: Mixed     Lean Equiv: $108.37 +$0.21**

   *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:

   Any weakness in cattle futures is very short-lived and has recently been
confined to intraday activity. The bullish mindset is firmly set and it may
take a monumental event to change that. Some light cash traded at $4.00 to
$5.00 higher for live and over $7.00 higher for dressed cattle in the North.
Southern trade has not developed. The light trade may set the stage for cash
Friday, but the majority of the trade may not be done at those levels. Beef
packer margins are poor with the margin down to the level it was in May and
near the low for the year. Boxed beef prices slipped on Thursday with choice
down $0.37 and select down $0.23. That will have little impact on the market.
The tight supply of feeder cattle continues to underpin the market. This will
not change anytime soon and will keep prices strong. President Trump stated on
Thursday they are working on the high beef prices and prices will be coming
down soon. No details have been released, but it could result in some
liquidation.