DTN Early Word Livestock Comments      10/02 06:13
   Hog Futures are Poised to Renew the Uptrend on Wednesday

   Live cattle futures closed in positive territory Tuesday, but feeder cattle
futures remained under pressure. Feeder cattle may be the anchor limiting
upside potential or they will rebound to catch up to live cattle. Hogs found
greater support from cash and cutouts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Mixed     Live Equiv:   $219.95 +$1.17*

   Hogs: Higher         Futures: Higher    Lean Equiv:   $102.54 +$0.69**

   *Based on formula estimating live cattle equivalent of gross packer revenue.
(The Live Cattle Equiv. 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:

   December live cattle closed at the highest level since July 31 Tuesday and a
new high for this move. Traders are feeling a little more confident over cash
prices this week as further support was seen in boxed beef. Choice cuts
increased by $2.09 with select cuts up $0.77. This moved choice back above $300
again. It is too early to tell, but cutouts may begin to trend higher. This,
along with stronger futures, will provide the confidence needed for feedlots to
hold out for higher prices. That seems a strong possibility as the packers do
not have many cattle purchased ahead. Cash trade is not expected Wednesday as
solid offers have not yet been established. Feeder cattle traders are not quite
as optimistic, remaining less enthusiastic so far this week.