DTN Early Word Livestock Comments      06/10 06:05
   Canada Bans Texas Livestock Imports

   Cattle futures found strength on the idea that cash may trade steady to
higher this week. Traders are uncertain over the impact of the New World
screwworm, but seem to feel demand will not be impacted. Hog futures just
cannot catch a break. Contracts are headed to test support from mid-November.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Lower      Live Equiv: $288.50 $0.02*

   Hogs: Lower            Futures: Lower      Lean Equiv: $102.57 -$2.50**

   *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:

   There remains uncertainty over the impact of the New World screwworm on the
market. Futures have declined at times from knee-jerk reactions based on news
stories. However, once those stories are digested, buying interest surfaces.
The Canadian Food Inspection Agency announced temporary restrictions on
livestock imports from Texas. Cattle, horses and other livestock that
originated in Texas or were present in the state within 21 days before entering
Canada will be denied from crossing the border. This does not hinder the
importation of processed beef. This is not expected to have much impact on the
market, other than another story for traders to consider. Cash cattle have not
traded this week, but the anticipation is for steady cash. Boxed beef prices
were mixed, with choice up $0.70 and select down $1.16.