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     Perryville, Farmington Bulk Plant, & Ste. Genevieve, MO.

DTN Early Word Livestock Comments      09/16 06:03
   Livestock Fundamentals Show Little to Get Excited About

   Livestock futures showed red across the complex as trader support was
elusive. Cattle futures may have been the recipient of quick profit-taking
after the recent strength. Hogs continued their freefall with new contract lows
across the complex.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed      Live Equiv: $276.20 +$0.77*

   Hogs: Higher           Futures: Mixed     Lean Equiv: $94.53 -$2.28**

   *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:

   After the opening, cattle futures fell back as traders liquidated long
positions to bank profits after the recent increase. Although cash cattle
prices may be higher this week, demand fundamentals are lacking. Boxed beef
prices were higher on Tuesday, with choice up $0.77 and select up $1.81; it was
little consolation after a period of mixed boxed beef prices. Even with the
decline in futures on Tuesday, the trend is still up, as the weakness only
erased Monday's gains. The Cattle on Feed report will be released on Friday.
Estimates are for cattle on feed on September 1st at 101.89% of a year ago.
Placements in August are at 96.8%. Cattle marketed is estimated at 96.1%.