DTN Early Word Livestock Comments      07/30 06:19
   Hog Futures May See Further Weakness Thursday

   Cattle futures posted gains Wednesday with optimism that cash may be no
worse than steady this week. However, lower boxed beef may suggest otherwise.
Hog futures took it on the chin as traders decided to liquidate despite good
packer interest.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Lower    Live Equiv: $266.23 -$1.43*

   Hogs: Lower              Futures: Mixed    Lean Equiv: $108.33 -$2.13**

   *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 extended their gains Wednesday as increased optimism over
possible steady cash permeated the market. Light cash trade earlier this week
was lower, but the feedlots have so far passed on those early bids as the week
progressed. After some strength in boxed beef earlier in the week, prices fell
back on Wednesday. Choice boxed beef declined $2.43, with select down $1.11.
This weakness may shake the confidence of traders over a return to stronger
demand. A tentative agreement has been reached between Cargill Meat Solutions
and the union representing more than 1,700 employees who have been locked out
of the Fort Morgan, Colorado, plant since May 20. It is one of the largest meat
processing companies in the U.S. While the plant was closed, cattle were
diverted to other Cargill plants.