DTN Early Word Livestock Comments      10/21 06:11
   Market Uncertainty Increases Caution

   The cattle market digested the comments from President Trump last week and
decided it was not going to change much for the beef industry. Live cattle did
not follow through to the downside Monday, with further weakness in feeder
cattle being limited. Hog futures were mixed Monday, with traders uncertain
over continued weakness or the potential for liquidation having ceased.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Higher      Live Equiv: $268.23 +$1.77*

   Hogs: Higher             Futures: Mixed       Lean Equiv: $108.28 -$0.62

   *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:

   The impact of the comments by President Trump about the government taking
steps to reduce beef prices was a kneejerk reaction, as traders were uncertain
about what that could mean. The news was digested over the weekend, and it was
decided it likely would not change much, as the supply of cattle is tight and
the importation of more beef from Argentina is not likely going to have much
impact. However, the uncertainty may keep a lid on the upside price potential
in the near term. It is uncertain what cash cattle will trade for this week,
but the strength last week might indicate cash could be higher again. Boxed
beef prices showed strength Monday, with choice up $2.41 and select up $3.19.
Feeder cattle futures were not as confident with the January and later
contracts closing lower.