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DTN Early Word Livestock Comments      10/08 06:14
   Strong Demand Supports Livestock

   Most futures contracts were higher in the livestock complex Monday with
feeder cattle showing the greatest gains. Boxed beef prices surged. Cash hogs
were higher along with cutouts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher        Futures: Higher       Live Equiv: $223.63 +$2.02*

   Hogs: Higher         Futures: Higher     Lean Equiv: $102.05 +$1.74**

   *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:

   Live cattle futures spent some time in negative territory but were able to
close Monday positive for the day. Traders may be hesitant over the upside
price potential for cash. The fact that packers did not purchase many head for
deferred delivery provides confidence that higher prices may be obtained. Boxed
beef prices surged with choice up $3.35 and select up $1.72. There have been
back-to-back days of good boxed beef prices which has added to the support for
higher cash prices. Futures contracts for next year continue to make higher
highs and are nearly at a level of technical resistance. The current pasture
and rangeland conditions are not very good, which may continue to curtail
heifer retention and the growth of cattle numbers.

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