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DTN Early Word Livestock Comments      10/15 06:18
   Feedlots Gain Confidence to Hold For Higher Cash

   The cattle market continued its incredible resilience Tuesday. Trading lower
for a brief period before traders became aggressive buyers, pushing futures to
new highs. Hog futures gapped lower on the open and never looked back.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher           Futures: Higher      Live Equiv: $265.36 +$0.33*

   Hogs: Higher             Futures: Mixed     Lean Equiv: $109.96 +$0.17**

   *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:

   Live cattle futures have made higher highs for the past eight consecutive
days. It is unlikely this will be sustained, but it is uncertain how much
further it will increase. For every buyer, there is a seller, and the sellers
keep getting run over. Feeder cattle provided incredible support, with
contracts closing over $4.00 higher. Feedlots seem to be in a frenzy to find
cattle to stock their operations and continue to pay higher prices for what is
available. This has been leading live cattle higher. The strength so far this
week will keep feedlots holding for higher cash as they know packers need
cattle to supply continued strong demand. Boxed beef did not show strong gains,
but gains nevertheless, with choice up $0.51 and select up $0.80. Fundamentals
remain bullish and will continue to remain that way for a time.