DTN Early Word Livestock Comments      08/19 06:06
   Strong Boxed Beef May Provide Support

   Traders were cautious over the impact of slaughter resuming at the Fort
Morgan plant and its impact on the market. Exceptionally strong boxed beef had
minimal impact. Hog futures took it on the chin with new contract lows. The
market is struggling to find support.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Higher      Live Equiv: $285.01 +$6.15*

   Hogs: Higher            Futures: Mixed      Lean Equiv: $106.16 +$0.37**

   *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:

   The resumption of processing at the Fort Morgan plant and the exceptional
strength in boxed beef on Monday resulted in cattle futures opening higher and
trading in positive territory on Tuesday, but the early strength waned,
resulting in limited price gains by the close. Boxed beef prices were
exceptionally higher again on Tuesday, with choice up $11.58 and select up
$2.03. Boxed beef prices are regaining ground very quickly. It is difficult to
say whether the strength in boxed beef will be sufficient for packers to bid
aggressively for cattle this week or if they will hold and try to improve their
margins further. The Cattle on Feed report will be released on Friday and may
limit futures movement ahead of the report. Cash trade may also be delayed
until then.