DTN Early Word Livestock Comments      10/29 06:11
   Traders Show Increased Optimism

   The livestock complex closed higher Monday with live cattle showing the
least gains. Live cattle could not push through resistance while feeder cattle
are slowly trending higher. Hog futures posted new contract highs across the
board.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Mixed       Live Equiv: $232.99 +$0.01*

   Hogs: Higher          Futures: Higher     Lean Equiv: $107.84 +$3.01**

   *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 began lower Monday, as expected, due to the Cattle on Feed
report but eventually found greater buying interest as traders focused back on
the current fundamentals. Higher cash last week and the potential for no less
than steady cash this week provide continued support. However, support has not
been sufficient to push futures above technical resistance. Boxed beef was
mixed Monday with choice up $1.26 and select down $2.90. This may cause traders
to pause on their outlook for continued higher prices. Both domestic and
international demand may begin to waver at the higher prices. The packers were
able to purchase cattle ahead last week, but they are keeping up with demand
and with forward purchases nearly the same as the previous week. this is not
considered negative to the market. Thursday is the last trading day for October
live cattle futures.