DTN Early Word Livestock Comments      11/05 06:13
   Uncertainty at West Coast Ports Pressures Cattle Markets

   Negotiations resumed Wednesday after a temporary break for elections for the
Los Angeles and Long Beach ports. Strike threats pose a real threat for beef
exports as a large portion are handled through those two facilities. An
announcement overnight showed that their contract had another temporary
extension through 11:59 p.m. Friday, Nov. 6.

Robin Schmahl
DTN Contributing Analyst

                        Futures     Equiv
Cattle:     Steady      Lower       Live       $269.16     -$1.77 *
Hogs:       Lower       Lower       Lean        $76.06     -$3.14 **

   *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 markets resumed their spiral lower on Wednesday with feeder cattle
falling another $2.50-$3.125 and live cattle falling 15-85 cents. Morning trade
appeared like there was some buying interest, but markets quickly lost footing
by midday. As of Wednesday night, there was still no word on how negotiations
were going for the California ports. This is a major threat to beef markets on
top of an already poor performing week. Cash markets continue to trade lower as
it appears like packers have the upper hand. Producers in Iowa described the
struggle they've been having, trying to find a buyer for their cattle over the
last 30 days. It appears like the market is currently flush with cattle ready
for slaughter as they pack on the pounds waiting for shipment. The export data
released Wednesday showed lower beef exports with China down 78.2%, as well as
the current biggest buyer, South Korea down 1.4% and Japan was flat. Taiwan was
the one bright spot on the report, up 20%.