DTN Early Word Livestock Comments      07/01 06:05
   Mixed Trading Ahead of Extended Weekend

   Live cattle chopped around yesterday finally managing to close higher but
not after establishing a lower high and lower low. Feeder cattle posted a
strong day reacting to the weakness of corn. Hogs were higher for a time but
disappointment with cash and demand pressured futures.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower       Futures: Mixed       Live Equiv:    $195.27 -$0.48*

   Hogs: Steady         Futures: Higher      Lean Equiv:    $115.11 -$1.31**

   *Based on formula estimating live cattle equivalent of gross packer revenue.
(The Live Cattle Equiv. 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:

   Live cattle futures were able to close higher in most contracts, but
certainly nothing to get excited about. Most cash trading is finished for the
week leaving little to go on other than the strength of feeder cattle. Feeder
cattle jumped on weakness of corn. Other than that, feeder cattle also had
little to go on as auctions this week generally showed mixed price activity.
Boxed beef prices were again lower with choice down $0.88 and select down
$0.24. Weekly export sales were much better than the previous week at 17,000
MT, up 52%. China continues to be a consistent buyer. Futures are expected to
drift today into the holiday weekend.