DTN Early Word Livestock Comments      10/22 06:23
   Livestock Traders Will Remain Cautious

   It appears the cattle complex has considered the potential for government
intervention in the cattle market and decided it would not have much impact.
Hog futures found strength likely due to an oversold market and not because of
a change in fundamentals.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Higher      Live Equiv: $269.39 +$1.16*

   Hogs: Steady             Futures: Mixed       Lean Equiv: $106.79 -$1.49

   *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 showed increased buying interest from traders as the
government's intervention in beef prices does not appear it will have a
significant impact on the overall market. However, traders will be cautious as
the recent rhetoric should not be dismissed completely. It may be challenging
for futures to recover from recent losses. Cash cattle have not yet traded this
week, but trade is likely to be no worse than steady prices with last week.
Boxed beef prices were mixed on Tuesday with choice up $2.75 and select down
$0.89. Packers continue to maintain a slower slaughter pace in an attempt to
improve margins. Their margins have dropped to the low levels they had been in
May. Feeder cattle futures rebounded with caution, even though demand from
feedlots remains strong.