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DTN Early Word Livestock Comments      07/24 06:06
   Traders Look Ahead to the Cattle on Feed Report

   Much of the trading activity in cattle futures on Thursday was positioning
ahead of the Cattle on Feed report Friday. Lower cash had been factored in and
was not a focus. Hog futures closed mixed as traders determined whether there
will be continued fundamental strength.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Mixed    Live Equiv: $267.25 -$0.69*

   Hogs: Lower            Futures: Higher    Lean Equiv: $111.03 +$0.98**

   *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 were covering some of their short positions ahead of the Cattle on
Feed report that will be released Friday. It did not seem to make much
difference that cash cattle traded lower, as that was not the focus. The
reality of lower cash may have an influence later Friday or at the beginning of
next week. Southern live cattle traded as much as $8.00 lower while dressed
cattle traded $12.00 to $15.00 lower. Feedlots have not been able to gain the
upper hand over the past three weeks, with cash plummeting more than $30.00 in
some cases. Boxed beef prices again closed lower, with choice down $0.63 and
select down $1.82. The average trade estimates for the Cattle on Feed report
are for on-feed numbers as of July 1 at 102.2% with a range of 101.1% to
103.3%. Placements in June at 98.8% with a range of 93.7% to $106.0%.
Marketings in June at 97.0% with a range of 94.9% to 98.0%. Analysts are
uncertain about the number of placements, with the range being exceptionally
wide. This is likely due to the uncertainty of how many have been pulled from
poor pasture conditions and moved into feedlots.