DTN Early Word Livestock Comments      08/05 06:11
   Hope Remains for Higher Cash

   Cattle futures began lower on Tuesday, but found support as the day
progressed. Boxed beef prices are finding support. Hog futures closed higher,
but the fundamentals are not providing specific price direction.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher           Futures: Higher    Live Equiv: $269.85 +$1.85*

   Hogs: Higher             Futures: Mixed     Lean Equiv: $106.52 -$1.08**

   *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 futures uncovered buying interest after opening lower and trading
lower early in the day. No cash cattle trade has taken place, but it is likely
cash will be higher. Boxed beef prices were higher in both categories, possibly
indicating the seasonal lull is behind, and stronger demand is returning. Of
course, it will take more than one day of both choice and select boxed beef
being higher. Choice boxed beef gained $2.92, with select up $2.05. Meatpackers
who have been locked out of work for more than 70 days rejected the latest
union-recommended contract offer from Cargill Meat Solutions in Fort Morgan,
Colorado. Both sides will be back at the bargaining table. The cattle usually
processed at this facility will continue to be diverted to other locations.
Feeder cattle were strong in the nearby contracts but showed limited strength
in later contracts. The May contract closed lower for the day.