DTN Early Word Livestock Comments      09/12 06:28
   Cash Cattle Expected to Trade Lower

   Live cattle futures regained more of the losses, while feeder cattle traders
found the confidence to buy back into the market. The large decline on Tuesday
was a knee-jerk reaction to the statement about lower beef prices by President
Trump. Hogs closed mixed with spread trading, supporting nearby contracts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Mixed      Live Equiv: $290.05 -$3.18*

   Hogs: Lower             Futures: Mixed     Lean Equiv: $119.14 -$1.60**

   *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 fundamentals of the cattle market are overriding President Trump's
statement on the implementation of his policies, which is expected to lower
beef prices for consumers. That will not change the fundamentals of the market
or increase cattle numbers anytime soon. Traders have digested the statement
and viewed the market decline as a buying opportunity. Further cash cattle
trade did not develop on Thursday as packers are holding bids at lower prices,
and feedlots are hoping to get higher prices. However, the stage may have been
set earlier in the week with some light cash cattle trade at $5.00 to $8.00
lower. Boxed beef prices have been showing weakness with lower prices in both
categories on Thursday. Choice boxed beef declined $4.85, with select down
$3.73. Export sales were lower than the previous week at 12,100 metric tons
(mt).