DTN Early Word Livestock Comments      07/23 09:44
   Cattle on Feed Report May Limit Volatility

   Cattle were the beneficiaries of lower grain prices Thursday with similar
support possible Friday as overnight grain futures were lower. Trading may be
limited as the Cattle on Feed report will be released after the close. Hog
futures remain in an uptrend, but positive fundamental news is becoming harder
to find.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady     Futures: Higher        Live Equiv:    $198.39 +$0.79*

   Hogs: Lower        Futures: Mixed        Lean Equiv:    $129.07 +$0.22**

   * based on formula estimating live cattle equivalent of gross packer
revenue. (The Live Cattle Equiv. 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 got a boost Thursday from lower grain prices again. Support
also came from higher boxed beef prices. Choice cuts gained $0.90 with select
cuts up $1.00. However, cash activity was not what we wanted to see as business
was done at lower prices. Cattle in the North sold on an average $3.00 lower
than last week with cattle in the South $1.00 lower. That impact was mitigated
due to an acceptable weekly export sales report and the fact that the June Cold
Storage report was to be released after the close. Cold storage numbers may
provide some support to the market Friday as beef in cold storage in June was
the lowest level over the past seven years. However, traders may remain
cautious as they look ahead to the Cattle on Feed report to be released after
the close Friday. The estimates for the report are for placements at 95.9%,
marketings at 102.1% and on-feed numbers at 99% of last year. Traders have had
overnight to digest the Cold Storage report and will have the weekend to digest
the Cattle on Feed report.