DTN Early Word Livestock Comments      07/03 06:15
   Lower Cash Cattle Trade Expected

   Cattle futures turned on their heels Wednesday and regained much of what was
lost on Tuesday. Traders looked past the news of cattle imports resuming from
Mexico and returned to market fundamentals. Hog futures exhibited bull
spreading again with nearby contracts closing higher.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Mixed         Live Equiv: $287.15 -$0.32*

   Hogs: Lower           Futures: Mixed         Lean Equiv: $116.68 -$1.55**

   *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 found footing Wednesday as traders digested the news of the
renewal of cattle imports from Mexico and bought the break. This resulted in
futures nearly recovering what had been lost Tuesday. However, further strength
may be limited due to Northern dressed cattle trading steady to $2.00 lower.
Cash trading today should follow suit, with most sales lower. Packers seem to
have surrounded themselves with sufficient supplies for the time being. Boxed
beef prices were mixed with choice down $0.74 and select up $0.25. Mixed boxed
beef prices have been the pattern lately and could indicate demand might be
slowing. The markets will be closed on Friday in observance of Independence Day.