DTN Early Word Livestock Comments      07/09 06:12
   Follow-Through Buying to Begin the Day

   Cattle futures found solid buying interest from traders, pushing all cattle
contracts to new highs. Hogs did not follow suit, closing mixed with
uncertainty over the cash price and returning cutout weakness.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed         Live Equiv: $285.86 +$1.21*

   Hogs: Higher           Futures: Higher        Lean Equiv: $117.93 -$1.48**

   *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 opened higher and never looked back as traders became
increasingly aggressive throughout the day. New contract highs were set in all
cattle contracts. The August contract is quickly reducing the discount it had
to cash. Cash cattle have not been traded so far this week, with the
anticipation of no better than steady prices. However, with the surge in
futures, feedlots might hold for higher prices. Boxed beef increased in both
categories, with choice up $2.06 and select up $0.93. Demand for beef remains
strong with good movement over the weekend. Feeder cattle prices are on the
rise with increased prices paid at auctions.