DTN Early Word Livestock Comments      07/06 06:07
   A Cautious Beginning Is Expected in Livestock Markets

   Cattle futures showed further weakness with traders showing continued
disappointment over the weakness in cash and boxed beef. Hog futures again
showed spread trading as uncertainty surrounds the market potential at the end
of the year.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Mixed      Live Equiv: $283.13 -$2.55*

   Hogs: Higher            Futures: Higher      Lean Equiv: $102.56 -$0.35**

   *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 continued their descent on Thursday with further selling due
to the cash cattle weakness. Southern live cattle had further sales averaging
$3.00 lower, with Northern dressed cattle $5.00 lower. The weakness last week
may have set the stage for prices to retest the lows from June 4. The weakness
in boxed beef may add to the pressure. Boxed beef prices on Thursday were
lower, with choice down $4.19 and select down $2.26. Now that holiday demand is
behind, and summer weather impacts beef demand, further weakness in boxed beef
prices may continue. Cattle supplies remain low, but demand will dictate prices.