DTN Early Word Livestock Comments      11/04 06:21
   Futures May Have Limited Upside

   Cattle futures are on a roller coaster with volatile trade. It may be
difficult for futures to trend higher, but prices may remain supported. Hog
futures were mixed Monday, with traders uncertain if prices have found a
bottom.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed      Live Equiv: $274.91 +$0.82*

   Hogs: Higher            Futures: Higher     Lean Equiv: $107.89 -$0.30*

   *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 seem to have digested the recent events that cast a shadow over the
market. The uncertainty triggered massive liquidation and a substantial price
retracement. This moved futures from being overbought to slightly oversold in a
short time. It may be difficult for traders to regain their previous
bullishness, but the fundamentals of the reduced cattle supply and continued
consumer demand should support the market, allowing prices to rebound somewhat.
Traders will remain uncertain over what the government may come up with next,
but the bottom line is cattle numbers are tight and will remain that way. Boxed
beef prices were higher, with choice up $1.12 and select up $1.28. The decline
of cash cattle last week had the packers more aggressive with their purchases
as they were able to purchase a good amount for deferred delivery.