DTN Early Word Livestock Comments      07/15 06:27
   Traders to Begin Week With Caution

   Cattle futures were higher Friday despite cash cattle continuing to trade
lower. The lower cash had been factored in, leaving little reason for further
downside. Hog futures closed mixed with August closing the gap between it and
July. Cutouts increased significantly Friday.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower         Futures: Mixed       Live Equiv: $234.78 -$0.03*

   Hogs: Steady         Futures: Higher       Lean Equiv: $104.75 +2.70**

   *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:

   Cash cattle traded Friday as they had earlier in the week. Southern cattle
traded as much as $4.00 lower for the week with Northern dressed cattle $2.00
lower. The market had this factored in allowing for futures to bounce Friday.
Traders will be cautious to begin the week as boxed beef prices are not
providing much support with prices mixed Friday. Choice cuts were up $0.41 with
select down $1.07. Lower boxed beef put the pressure on the market last week
and may again this week. Reduced demand may keep packers less willing to pay up
for cattle. The WASDE report was friendly to the cattle markets with USDA
estimating higher prices. It must be remembered these are estimates and will
change from month to month. Feeder cattle prices were lower at some auctions
last week likely due to the hot weather and less desire to purchase and haul
the animals. The Commitments of Traders report showed fund traders increasing
their net-long live cattle position by 252 futures contracts to 68,963
contracts. Funds reduced their long positions in feeder cattle by 1,400
contracts to a net long of 2,205 contracts.