DTN Early Word Livestock Comments      07/08 06:06
   Demand Uncertainty May Foster Further Weakness

   Livestock futures closed lower except for the front-month August feeder
cattle and lean hog contracts. Hogs continued their choppy pattern while cattle
showed further liquidation.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Mixed      Live Equiv: $282.14 -$0.35*

   Hogs: Higher            Futures: Higher      Lean Equiv: $104.41 +$1.66**

   *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 August, October and December contracts made new lows as liquidation
continued. Feeder cattle showed a similar pattern but did not make new lows.
Nevertheless, the weakness continued as demand seems to be struggling. Boxed
beef prices were mixed, with choice down $0.71 and select up $0.02. Hot weather
generally slows beef consumption, and this year seems to be no exception. There
has been no interest in cash trading activity, with packers expected to hold
for lower prices. The New World screwworm seems to be a fact of life in the
U.S., with 32 recorded cases so far and only 18 cases remain active. This has
not been responsible for the recent weakness seen in the market.