DTN Early Word Livestock Comments      07/07 06:12
   Traders To Take a Wait-and-See Attitude

   Live cattle closed higher ahead of the holiday weekend as most of the cash
cattle trade developed at steady prices. That provided some confidence to
traders that maybe the slide was done. Hog futures were under pressure in the
near term as pork cutout prices declined during the week, indicating weakness
in demand.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Lower         Live Equiv: $284.23 -$2.92*

   Hogs: Higher           Futures: Mixed         Lean Equiv: $116.13 -$0.55**

   *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:

   Packers stepped up later on Thursday and purchased cattle for a full week of
slaughter. Most of the cash trade took place at steady money with the previous
week, with some business done at $2.00 lower in both the live and dressed
market. The August contract carries a substantial discount to cash, and it is
uncertain whether futures will increase or cash will decline by the end of
August. Packer margins have improved dramatically in June, with margins now
above $300 per head, rising from about $50 per head at the beginning of the
month. Boxed beef prices took a hit on Thursday, with choice down $5.11 and
select down $1.87. This may put pressure on futures Monday as beef demand may
slow after the holiday weekend. The port in Douglas, Arizona, will be reopened
Monday for the importation of cattle from Mexico.