DTN Early Word Livestock Comments      07/29 06:14
   Cattle Futures May Trade Sideways Wednesday

   Live cattle futures closed higher Tuesday as much of the bearish news had
been factored in. Feeder cattle diverged with nearby issues significantly
higher while later contracts declined. Hog futures regained much of the losses
of Monday as demand optimism remains.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Mixed    Live Equiv: $267.66 +$1.11*

   Hogs: Lower              Futures: Mixed    Lean Equiv: $110.46 -$0.54**

   *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:

   Live cattle futures rebounded Tuesday, nearly eliminating the losses of
Monday. Boxed beef prices seem to be finding support, which could influence
cash cattle prices. There has been some cash trade already this week with
Southern live cattle trading at $228 and Northern dressed cattle at $360. These
trades were both lower than last week. However, trading activity was light and
bids at those levels on Tuesday were passed. Boxed beef prices were mixed with
choice up $2.97 and select down $1.64. It seems boxed beef is finding some
support, which may influence cash trade this week. Feeder cattle futures had a
large divergence between the nearby and deferred contracts. The nearby
contracts showed strong gains as the reopening of the U.S border to Mexican
cattle will not overwhelm the supply anytime soon, but it could have an impact
on the supply later in the year and next year. This kept deferred contracts
lower.