DTN Early Word Livestock Comments      08/11 06:13
   Livestock Futures May Extend Gains Tuesday

   Cattle futures closed higher in most contracts Monday, but the gains lacked
conviction. The strength in choice boxed beef may be what is needed to provide
support. Hog futures posted nice gains but could not hold the highs.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Higher    Live Equiv: $271.65 +$3.17*

   Hogs: Higher             Futures: Mixed     Lean Equiv: $108.82 +$0.31**

   *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:

   Live cattle futures closed higher across the board Monday, but the gains
lacked conviction. Cash cattle traded higher last week, but traders may want to
see another week of stronger cash before moving futures higher to be in line
with cash. Buying interest in futures Tuesday might stem from the strength of
choice boxed beef on Monday. Choice boxed beef jumped $7.06. However, select
declined $1.53, keeping a little caution over price strength. Feeder cattle
futures were mixed with the August and September contracts closing lower while
later contracts posted moderate gains. The demand at auctions has tempered to
some extent due to the extreme dry conditions being experienced in many parts
of cattle country. Poor pasture conditions are limiting demand and prices.