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DTN Early Word Livestock Comments      10/05 06:20
   Hog Futures May Struggle to Find Buyers

   Livestock futures could not hold early gains as more aggressive selling
pressure surfaced as Tuesday progressed. Some pressure on the cattle complex
could be explained, but the substantial selling that erupted in hogs was a
mystery.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher     Futures: Mixed      Live Equiv   $184.27 +$1.17*

   Hogs: Higher      Futures: Higher      Lean Equiv:  $106.13 -$1.64**

   * based on formula estimating live cattle equivalent of gross packer
revenue. (The Live Cattle Equiv. 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 financial markets had a banner day with the stock market closing 825
points higher Tuesday. However, that was not enough to maintain early gains in
livestock futures. Boxed beef certainly was positive with choice up $2.10 and
select up $0.60. Cash cattle have not yet traded, leaving uncertainty over cash
potential. The general idea is that cash will trade higher as slaughter pace
continues to run strong and packers need to purchase for the week and to try
and keep ahead of the market by continuing to purchase some for differed
delivery. Feeder cattle reacted negatively to a supported grain market.
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