DTN Early Word Livestock Comments      07/17 06:18
   Hog Futures to Maintain Renewed Support Friday

   Live cattle futures broke below support, adding to the already negative
market so far this month. Feeder cattle futures are on their way to do the
same. Hogs held onto the strong gains from Wednesday as fundamental support
improves.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Lower    Live Equiv: $271.32 -$2.16*

   Hogs:   Lower           Futures: Higher   Lean Equiv: $108.88 +$0.96**

   *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 made a paltry attempt to rebound with a slightly higher
opening on Thursday, but buyers were overwhelmed by the bearish market. Live
cattle fell below support, opening the way for further liquidation of longs.
The August live cattle contract has not posted a higher close since June 26.
The weakness of cash cattle put pressure on the market. Dressed cattle
continued to trade as much as $10.00 lower with live cattle as much as $11.00
lower than last week. Feedlots are selling to avoid the potential for further
losses next week. Boxed beef remained weak, with choice down $2.90 and select
down $3.49. The U.S. has implemented a 25% tariff on Brazilian imports.
However, some items have been exempted, such as beef, coffee, rare earth
minerals, and energy products. The price of certain weight classes of feeder
cattle has been holding well, but that may come to an end as pressure mounts on
the cattle complex.