DTN Early Word Livestock Comments      10/27 06:27
   Follow-Through Selling Expected

   Cattle futures were hit from different angles Friday with contracts limit
down. It was a dismal end to a difficult week. Hog futures showed little change
with traders uncertain of market direction.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Lower      Live Equiv: $272.69 +$1.98*

   Hogs: Lower             Futures: Higher     Lean Equiv: $108.98 +$3.07**

   *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:

   Cattle traders had been struggling throughout last week with the rhetoric
from the government over the high beef prices and statements they were going to
implement steps to reduce prices. Then, Secretary of Agriculture Brooke Rollins
was to meet with Mexico's agricultural minister about the potential of
reopening the border for feeder cattle imports despite her previous stance
about not doing that anytime soon. The pressure in futures triggered stops and
pushed both live and feeder cattle futures to their limits down. This opens up
expanded limits again Monday of live cattle at $10.75 and feeder cattle at
$13.75. Cash cattle traded $2.00 lower in both the North and the South, which
would have also added to the pressure had not futures already been limit down.
Boxed beef closed higher with choice up $2.62 and select up $3.23. This may
have little impact on the market Monday.