DTN Early Word Livestock Comments      09/26 06:28
   Traders Find Little to Get Excited About

   There was not much volatility in the livestock complex Wednesday. Cattle
traders are waiting for cash activity and hog traders are looking ahead to the
Quarterly Hogs & Pigs report.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Mixed       Live Equiv: $218.56 -$2.60*

   Hogs: Lower          Futures: Mixed      Lean Equiv: $100.15 +$0.14**

   *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 traders did not have much to go on, leaving Wednesday's trading
activity lethargic. The focus is on the cash market and what the packers must
do to purchase cattle. They did not purchase many ahead for deferred delivery
last week, leaving them in a position that they may need to be aggressive.
However, the weakness of boxed beef is a cause for concern as it indicates
demand remains slower than desired. The packers do not have much profit margin
and will try to do what they can to maintain what little they have. Boxed beef
prices Wednesday took a hit with choice down $3.72 and select down $3.59. It
will be up to feedlots whether they want to hold cattle over for another week
or if they will be content with steady prices.