DTN Early Word Livestock Comments      08/21 06:20
   Traders Look Ahead to the Cattle on Feed Report

   Cattle futures tried to make a run higher again but could not hold the
entire gains. Futures closed over $1.00 off their highs. Traders will turn
their attention to the Cattle on Feed report Friday. Hog futures continued to
struggle as demand seems to have slowed and support remains elusive.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Higher      Live Equiv: $283.99 -$2.51*

   Hogs: Lower            Futures: Mixed      Lean Equiv: $103.53 -$1.09**

   *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 are trying to find support. Overall, traders remain bullish,
but the market needs to show sufficient reason for them to turn aggressive
buyers. There may be strength Friday as short-covering may take place ahead of
the Cattle on Feed report released this afternoon. The estimates for the report
are for on-feed numbers on Aug. 1 at 102.5% of a year ago with a range of
102.3-102.9%. Placements in July at 93.5% with a range of 92.3-95.1%.
Marketings in July at 92.6% with a range of 92.2-93.4%. This is the first time
in quite a while that the range of estimates for placements has been this
narrow. Cash cattle are expected to trade lower Friday as packers remain
unaggressive. Boxed beef prices on Thursday were lower, with choice down $5.06
and select down $0.43.