River Valley MFA  - CLICK - MFA CONNECT

DTN Early Word Livestock Comments      10/29 06:24
   Livestock Futures May Show Stability

   It appears the liquidation phase may have run its course. Feeder cattle
spent a portion of the day trading limit down, but did not hold through the end
of Tuesday. Hog futures were unable to find support with continued pressure
stemming from the inability of cutouts to trend higher.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Mixed      Live Equiv: $275.01 +$0.52*

   Hogs: Higher            Futures: Mixed     Lean Equiv: $106.26 -$1.06**

   *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:

   Much of the selling pressure subsided in live cattle futures, with contracts
closing mixed Tuesday. No chart gaps remained for the day. Feeder cattle were
another story as futures opened substantially lower, leaving another chart gap.
Generally, chart gaps are filled at some point, but it may be a tall order in
the current market environment. Those who had been caught in the market and
were finally able to liquidate are unlikely to step back in anytime soon. Cash
cattle are expected to trade lower based on limited cash trading activity at
$10.00 lower on Monday and the large decline in futures. Boxed beef prices were
mixed with choice up $1.77 and select down $1.66.