DTN Early Word Livestock Comments      11/07 06:23
   Livestock Futures May Drift Into the Weekend

   There was little to support the cattle complex on Thursday. Live cattle
tried to gain some traction, but negativity overwhelmed the market. Hogs
continue to decline with the weak trend remaining intact.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower             Futures: Mixed     Live Equiv: $274.45 +$0.04*

   Hogs: Lower               Futures: Mixed     Lean Equiv: $103.42 -$0.36*

   *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:

   It will take a monumental effort for cattle futures to regain the losses of
this week. The uncertainty permeating the market will limit upside potential.
Cattle supplies remain tight and should provide support. However, some of the
decline may have been the elimination of some premiums that futures contained.
The previous exuberance of traders may have pushed the market too high, adding
more premium than was necessary. It is difficult to know where the market will
settle out. No further cash trade took place on Thursday as feedlots hoped for
a rebound in futures, and packers are determined to use the weakness to their
advantage to pay lower prices. Boxed beef prices were mixed with choice down
$0.29 and select up $0.51. Lower cash trade is likely.