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DTN Early Word Livestock Comments      09/27 06:12
   Rebound Likely, But May Be Limited

   The livestock complex felt the pressure from the outside markets Monday
regardless of any positive fundamentals. Higher cattle futures did not last
long as selling erupted, permeating throughout the contracts. Hogs fell out of
bed with prices plummeting below chart support without blinking an eye.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Higher      Live Equiv:   $184.50 +$0.46*

   Hogs: Higher          Futures: Higher     Lean Equiv:   $109.54 +$0.53**

   *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:

   The continued meltdown of the financial markets spilled over into
commodities with prices lower across the board. A recession is looming, and
traders were afraid of the impact on markets. Cattle spent some time in
positive territory but retreated as pressure continued to build. Cash cattle
did not trade as expected, but it may be difficult for feedlots to achieve
higher cash this week due to the recent circumstances. The slightly negative
Cattle on Feed report, along with the potential for lower demand as consumers
grapple with higher prices, may increase the resolve of packers to hold or
reduce bids. Boxed beef was mixed Monday with Choice down $0.79 and Select up
$4.04. With stock futures higher overnight, cattle may see a bounce.
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