DTN Early Word Livestock Comments      09/18 06:11
   Traders May Adjust Positions Ahead of Cattle on Feed Report

   Cattle futures were under substantial pressure on Thursday as traders would
rather liquidate positions ahead of the Cattle on Feed report than take a
chance on it. Frankly, hog futures held well despite cash and cutout weakness.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Higher      Live Equiv: $273.36 -$2.43*

   Hogs: Higher           Futures: Higher     Lean Equiv: $94.57 +$1.19**

   *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:

   The proverbial rug was pulled from under the cattle the past two days.
Futures closed at the lowest level in two weeks. Last week's strong cash prices
and Thursday's initial trade at steady cash are not providing continued
support. Light trade took place for Northern dressed cattle at steady money
with last week. However, the greater concern is that boxed beef prices are not
performing well. Choice boxed beef fell $3.66 and select declined $2.69 on
Thursday. Could it be that consumers are concerned about the tariff-free beef
that is to be imported over 90 days that beef demand is being affected? The
Cattle on Feed report will be released at 2 pm. Central Time today. Estimates
are for cattle on feed on September 1st at 101.89% of a year ago, with a range
of estimates of  101.4% to 102.3%. Placements in August are at 96.8%, with a
range of estimates of 93.9% to 98.4%. Cattle marketed is estimated at 96.1%
with a range of 95.3% to 96.4%.