DTN Early Word Livestock Comments      08/27 06:19
   Livestock Futures Struggle to Find Support

   Cattle futures made a valiant attempt to regain some losses, but the
strength earlier in the day could not hold into the close. The October live
cattle and the nearby feeder cattle contracts closed slightly lower. Hog
futures posted minor gains, but it may have been mostly short-covering as
fundamentals are not conducive to a change in trend.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Mixed      Live Equiv: $281.95 -$2.71*

   Hogs: Lower            Futures: Lower     Lean Equiv: $102.56 -$2.12**

   *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:

   The outlook for cash cattle trade does not look positive again this week.
Early light cash trade took place at lower prices than last week, likely
setting the stage for the rest of the week. Packers have the upper hand and are
using it to their advantage. They already have some cattle purchased ahead for
deferred delivery and will likely continue that trend to maintain an adequate
supply, eliminating the need to be aggressive in the cash market. Boxed beef
prices fell, with choice down $3.40 and select down $6.30. Thursday is the last
trading day for the August feeder cattle contract, with September becoming the
lead month. It will be interesting to see whether President Trump listens to
the voice of cattle associations and Farm Bureau to reverse the decision to
allow imports of 300,000 metric tons of beef for 90 days. Concerns have also
been raised about the ability to inspect the large volume of beef in a short
period.