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DTN Early Word Livestock Comments      08/24 06:24
   Cattle Futures May Show Volatile Trade

   Most cattle contracts closed higher as traders balanced positions ahead of
the report, the border reopening for cattle from Mexico and more beef to be
imported into the U.S. Hog futures closed higher as short positions were
covered in case bullish news developed.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Mixed      Live Equiv: $281.60 -$2.39*

   Hogs: Lower            Futures: Higher      Lean Equiv: $104.97 +$1.44**

   *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:

   Cash cattle traded lower for the week. Northern dressed cattle were as much
as $10.00 lower while Southern live cattle traded as much as $3.00 lower than
the previous week. Cash had fallen around $35.00 over the past number of weeks,
moving some feedlots into the red. The news on Friday of President Trump
announcing the elimination of all quotas on imported beef as well as tariffs
had already been anticipated; there was an actual number associated with it.
Trump indicated he will sign an executive order to import 300,000 metric tons
of beef over the next 90 days and promised to reduce ground beef prices by 25%.
There is no indication as to where the beef will come from. Boxed beef prices
fell on Friday with choice down $4.24 and select down $2.42. The Cattle on Feed
report was neutral to bullish but may not have much impact. On feed as of Aug.
1 was 102.0% with an average estimate of 102.5%. Placements in July were 89.0%
with an estimate of 93.5%. Marketings in July were 93.0% with an estimate of
92.5%. The Commitment of Traders report showed fund traders as net sellers of
2,982 live cattle futures contracts, reducing their long position to 62,967.
They were net sellers of 641 contracts in feeder cattle, reducing their
net-long position to 10,261.