DTN Early Word Livestock Comments      10/22 06:18
   Cattle Futures May Drift Sideways Tuesday

   Traders were unsure of continued strength in the cattle market and held back
aggressive buying Monday. Boxed beef prices continue to exhibit strength. The
February and April lean hog contracts closed at new contract highs as traders
anticipated higher prices.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady       Futures: Higher      Live Equiv: $233.51 +$1.52*

   Hogs: Higher         Futures: Higher      Lean Equiv: $104.13 +$1.65**



   *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 could not generate trader interest to buy the market Monday.
Even though boxed beef prices have been increasing, there is concern whether
strong demand will continue due to the higher prices. Boxed beef on Monday was
higher with choice up $2.21 and select up $2.01. Boxed beef has been on a roll
over the past few weeks with prices increasing almost daily. Feedlots will hold
for no less than steady money and may not sell cattle any sooner than Friday
hoping for the continued strength of boxed beef. The Cattle on Feed report will
be released Friday and it is too early to see traders positioning themselves
ahead of the report. Some recent auctions have shown some weakness in feeder
cattle prices, but overall prices remain supported and are expected to remain
that way through the end of the year.