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DTN Early Word Livestock Comments      11/04 06:17
   Fund Traders Hold Record-Long Hog Futures Positions

   Cattle futures rebounded nicely from the lows on Friday, likely due to the
desire to liquidate recent sold positions ahead of the weekend. The
fundamentals did not suggest a change in trend. Hogs had a positive day and
week with new contract highs again Friday.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower         Futures: Mixed      Live Equiv: $227.66 -$0.70*

   Hogs: Lower          Futures: Higher     Lean Equiv: $109.88 +$0.84**

   *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:

   Last week was not a positive week for cattle and the initial outlook for
this week does not look supportive. Cash cattle did well, considering the
weakness of boxed beef and the need for feedlots to move some cattle. Southern
cattle traded steady with Northern dressed cattle ranging as much as $3.00
lower. Futures did correct from being overbought, but weakness also came from
the steady decline of boxed beef prices. Boxed beef closed on Friday with
choice down $3.26 and select down $0.34. It may be difficult for futures to
shake last week's weakness unless there is positive evidence of demand.
Restaurant traffic is lighter than usual as consumers struggle with high food
prices and have changed their eating habits to compensate. This may mean
reducing the consumption of higher-priced beef. The Commitments of Traders
showed fund traders increasing their long positions in live cattle futures by
7,691 contracts, bringing their net-long position to 100,516 contracts. They
sold 524 contracts in feeder cattle, reducing their net-long futures position
to 7,751 contracts.
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