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DTN Early Word Livestock Comments      09/22 06:19
   Follow-through Strength Expected for Livestock

   Cattle futures gapped higher as traders reacted to the Cattle on Feed report
and the discount futures are carrying to cash. Hogs found buying interest
likely from spillover from cattle, strong grain prices, and because they are
oversold.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Higher      Live Equiv: $276.30 +$2.80*

   Hogs: Higher           Futures: Higher     Lean Equiv: $95.94 +$1.93**

   *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:

   Traders reacted to the lower placements on the Cattle on Feed report. Some
had thought that higher on-feed numbers and lower marketings would offset lower
placements. However, traders generally react based on which side of the
estimates the actual numbers fall. The reaction was violent, as futures gapped
higher and short covering was triggered. There will likely be follow-through
strength today, with prices potentially retesting the recent highs, but caution
will be exercised as chart gaps generally are filled. Boxed beef was higher on
Monday, with choice up $4.41 and select up $2.51. If the strength of boxed beef
continues, a case could be made for higher cash trade this week.