DTN Early Word Livestock Comments      09/02 06:09
   Feed Costs Are More Than Concerning

   This week's cattle markets have been quiet compared to the volatility
brought on by the news headlines last week. In the meantime, hogs tested
resistance after some small wins to close out August.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Mixed       Live Equiv: $278.78 +$2.34*

   Hogs: Higher          Futures: Lower       Lean Equiv: $97.90 +$0.25**

   *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:

   September was the start of the new initiative to import foreign ground beef
at discounted rates for the American consumer. The impact of up to 300,000
metric tons hitting our market is still yet to be seen, but the initial shock
and selloff seem to have worn off now that September is here. Mexican cattle
are now slowly crossing the border, which has also weighed on the market, as
we've seen with the weakness in the cash trade. The biggest concern in the
market Wednesday is the sharp spike in the cost of feed. Soybean meal and corn
have taken off like a rocket, giving way for concern over ration mixes and
costs.