DTN Early Word Livestock Comments      08/28 06:16
   Limited Strength in Futures Is Expected

   Traders supported cattle futures despite a lower cash trade likely
developing for the week and the return of lower boxed prices. Hog futures
showed slight gains in all but the October contract as the market struggles to
find support.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Mixed      Live Equiv: $279.32 -$2.62*

   Hogs: Lower            Futures: Lower     Lean Equiv: $100.81 -$1.75**

   *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:

   Cattle futures found strength on Thursday from an oversold market and the
need for the August contract to move closer in line with cash. Monday is the
last trading day for the August live cattle contract, with October taking over
as the lead month and is currently carrying a significant discount. No cash
cattle trading activity took place on Thursday, with feedlots hoping packers
will raise their bids. Earlier trade this week showed the potential for
significantly lower prices again. Higher bids are not likely due to further
significant weakness in boxed beef. Boxed beef prices on Thursday showed choice
down $3.77 and select down $3.49. Feeder cattle prices have been lower at
auctions following the beef market. Calf prices have been decreasing, impacting
beef-on-dairy prices and an income stream for dairy farms.