DTN Early Word Livestock Comments      08/03 06:14
   Uncertainty May Dominate Livestock Futures

   Cattle traders reduced some of their exuberance seen much of the week as the
market corrected to be more in line with cash. Hog futures bounced after two
brutal days of losses, but will need to see renewed demand to regain more of
the losses.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher            Futures: Mixed    Live Equiv: $265.73 +$1.18*

   Hogs: Higher              Futures: Mixed    Lean Equiv: $106.70 -$1.49**

   *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 rebounded nicely during the week as the market corrected from
its oversold technical condition. Cattle futures seem to have factored in most
of the negative news. This gave feedlots confidence to hold for higher cash
despite boxed beef struggling for much of the week. Packers needed to purchase
cattle and stepped up to the plate. Southern live cattle traded $1.00 to $3.00
higher, with Northern dressed cattle trading as much as $3.00 higher. Northern
dressed sales were rather light, which may leave packers short-bought coming
into the week. Boxed beef prices were higher, with choice up $0.88 and select
up $4.90. The Commitment of Traders report showed fund traders reducing their
long futures position in live cattle by 8,656 contracts to a net long of
67,025. They reduced their long futures position in feeder cattle by 358
contracts to a net long of 8,987.