DTN Early Word Livestock Comments      11/08 06:23
   Lower Cash Cattle Prices Expected Friday

   Cattle futures closed higher Thursday, but not due to the exports sales
report as those numbers were dismal. The strength was likely due to the support
seen in other, outside markets. Hog futures were mostly higher with continued
spread trading impacting the December contract. Cash hogs were higher.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower         Futures: Mixed      Live Equiv: $222.99 -$3.88*

   Hogs: Lower          Futures: Mixed     Lean Equiv: $103.87 -$4.19**

   *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:

   Traders allowed futures to drift higher Thursday despite the low weekly
export sales report. Beef sales were dismal at only 8,000 metric tons (mt), a
marketing year low and down 43% from the previous week. Cash has not yet traded
this week with a greater anticipation of lower prices. The packers had a fair
amount of cattle purchased ahead and are not anxious to purchase aggressively
this week due to lower boxed beef prices. Price took a huge hit Thursday with
choice down $6.13 and select down $3.48. This may increase the resolve of
packers to hold for lower cash. Feedlots will make the decision whether to hold
cattle for another week and risk yet lower prices or move them this week.
Cattle futures have lower cash already factored in, which may leave futures
mixed even if cash trades lower.