DTN Early Word Livestock Comments      08/14 06:13
   Negative News Pressures the Market

   The expectation of lower cash prices and Tyson's announcement of plant
closures rattled the confidence of bullish cattle traders Thursday. Hog futures
declined due to continued weakness of cutouts and the need to close the chart
gaps.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Lower      Live Equiv: $273.58 +$1.71*

   Hogs: Lower             Futures: Mixed      Lean Equiv: $107.16 -$1.23**

   *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:

   Cattle were hit with negative news Thursday as Tyson announced the closure
of their beef processing facility in Joslin, Illinois. This facility employs
2,500 people and can process nearly 3,000 animals per day. This announcement
was made without warning and most employees' last day was Thursday. Not only
this facility, but Tyson is putting their Pasco, Washington, facility up for
sale and are phasing out the Eagle Mountain, Utah, case-ready facility. Packers
have been running in the red for quite some time and measures are being taken
to reduce the losses. This increases the negativity in the maket. This is not
supportive of cash prices. This news may have been factored in due to the
weakness of the past two days. Boxed beef prices were mixed on Thursday with
choice up $3.62 and select down $0.57.