DTN Early Word Livestock Comments      07/14 06:05
   Cattle Futures Struggle to Find Support

   Cattle futures tried to turn the trend and run higher, but ran out of steam,
resulting in a mixed close for live cattle and lower feeder cattle futures.
Hogs came under pressure with traders deciding to sell recently established
long positions on fundamental concerns.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Lower    Live Equiv: $276.90 -$4.16*

   Hogs: Higher            Futures: Higher    Lean Equiv: $108.01 +$0.21**

   *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:

   There was little news to set market direction. Bulls need to continue to be
fed, and the lack of positive news recently has put pressure on the market. The
reality of low cattle supplies has been a reality for a long time and is not
sufficient to support the market itself. Demand is the key, and recently demand
has faltered, as seen in boxed beef. Monday was exceptionally bearish for boxed
beef, with choice falling $7.07 and select down $3.16. The continued weakness
is likely to result in lower cash again this week. Live cattle futures are
making a valiant effort to remain above support, but further pressure is likely
as traders decide the fundamentals are stronger than the technicals. Feeder
cattle futures moved in a $4.00 to $5.00 range during the day and ultimately
closed lower, sending another bearish message to traders.