DTN Early Word Livestock Comments      08/25 06:19
   Cattle Futures May Show Further Weakness

   Cattle futures could not hold up under the news of more beef being allowed
into the U.S. quota- and tariff-free for 90 days to increase the ground beef
supply and the reopening of the border for cattle from Mexico. Hog futures
showed minor weakness with limited price movement throughout the day.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Higher      Live Equiv: $282.39 +$0.79*

   Hogs: Lower            Futures: Mixed      Lean Equiv: $106.94 +$1.97**

   *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:

   Traders were positive at the open, as the lower placement number on the
Cattle on Feed report provided early strength. However, that was short-lived as
uncertainty gained the upper hand and the market fell back after the first 10
minutes of trade and never looked back. The announcement by President Trump
over the weekend was to import 300,000 metric tons of beef over the next 90
days, with a promise to reduce ground beef prices by 25%. There was no
indication as to where the beef would come from or how logistically this could
be accomplished in that short of time frame. It feels more like a gesture to
create uncertainty rather than reality. The U.S. border was reopened for
Mexican cattle at the Douglas, Arizona, port. It is uncertain how many cattle
will cross during the next few weeks or months and what impact that will have
on the current market. Other ports will reopen over time. Traders found it
difficult to find any bullish support during the day. Choice boxed beef was
unchanged from Friday at $385.69, with select increasing $3.70 to $365.02.