DTN Early Word Livestock Comments      10/30 06:15
   Futures Movement Thursday May Determine Cash Cattle Prices

   Cattle futures were oversold Wednesday and also found support after the news
that cattle imports from Mexico will not resume anytime soon. Hog futures made
a valiant attempt to hold gains, but were unable to find solid support.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Higher    Live Equiv: $276.24 +$1.23*

   Hogs: Lower             Futures: Mixed     Lean Equiv: $106.48 +$0.22*

   *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 cattle market was desperately searching for something to stem the
liquidation Wednesday and found it when the Secretary of Agriculture Brooke
Rolllins confirmed cattle imports from Mexico will not resume anytime soon. The
reopening of the border was one of the bearish points that put pressure on the
market. How much impact beef imports from Argentina will have is questionable,
but it is a factor that will still need to be considered. Cash cattle did not
trade Wednesday. If cattle futures are stronger Thursday, feedlots may wait
until Friday to sell cattle. If there is weakness, they may be willing to sell
cattle today. Boxed beef closed higher with choice up $1.73 and select up $1.79.