DTN Early Word Livestock Comments      09/18 06:18
   Lower Boxed Beef Pressuring Futures

   It appears cattle futures have run out of steam as the weakness on Wednesday
nearly eliminated the gains of the week. The expectation for lower cash and
weak boxed beef provides the pressure. Hog futures had nothing positive to
influence traders with the continued weakness this week.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Lower      Live Equiv: $280.88 -$3.65*

   Hogs: Lower            Futures: Lower    Lean Equiv: $116.95 -$1.30**

   *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:

   Cattle futures may have run out of steam as boxed beef prices continue to
show weakness. Demand may be slowing as consumers reduce beef consumption after
the summer months. There may be limited downside as cattle supplies will remain
tight, but the impact of reduced demand may result in a significant price
correction. Boxed beef prices were lower Wednesday with choice down $4.44 and
select down $6.80. The weakness of boxed beef is likely to result in lower cash
this week. The Cattle on Feed report will be released Friday. During weeks when
the report is released, cash trading activity usually waits until the day of
the report. The average estimate for on-feed numbers on Sept. 1 is 99.1% of a
year ago. Placements in August are estimated at 91.0% and cattle marketed at
87.1%.