DTN Early Word Livestock Comments      11/03 06:52
   Cattle Futures May Continue to Struggle

   Cattle futures will have a difficult time turning the trend higher. The
damage has been done to the emotional stability of the market. Price rallies
are likely to be short-lived in the near term. Hog futures continue to struggle
with support remaining elusive. Traders cannot find consistent strength in
fundamentals.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Mixed      Live Equiv: $274.09 -$0.25*

   Hogs: Higher            Futures: Higher     Lean Equiv: $108.19 +$1.67*

   *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:

   The trade had anticipated lower cash for the week, but when the bulk of cash
activity took place, selling pressure developed. Cash followed the pattern of
lower prices early in the week with Southern live cattle trading $4.00 lower
and Northern dressed cattle $9.00 to $11.00 lower. The October live cattle
contract went off the board, adjusting higher to move in line with cash. The
other contracts closed with triple-digit losses. The December contract is the
lead month and is carrying a discount to where the October contract went off
the board. Boxed beef prices slipped on Friday with choice down $0.14 and
select down $0.87. Packers have been reducing slaughter to prop up boxed beef
and back up cattle to pay less for supplies. Feeder cattle futures were around
$2.00 to $3.00 lower. Feeders and calves continue to show lower prices at
auctions.