DTN Early Word Opening Livestock       10/21 06:19
   Early Week Trade Searches for Direction

   Following late-week pressure in all livestock markets, traders are expected
to cautiously enter the market Monday morning with mixed expectations. Limited
market direction is expected early Monday, although prices may remain scattered
in a mixed range.

By Rick Kment
DTN Livestock Analyst



Cattle: Steady   Futures: Mixed   Live Equiv: $139.90 +0.09*
Hogs:   Lower    Futures: Mixed   Lean Equiv: $ 81.80 +0.75**

*   based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue

GENERAL COMMENTS:

   Cash cattle trade late last week remained mixed when trade finally developed
on Friday. Trade in the North sold at generally $1 per cwt higher, with most
sales at $108 per cwt. Southern trade traded steady to $1 per cwt lower than
the previous week. The slaughter reductions at the Cargill plant in Kansas
still dark at the end of the week, limiting the cash cattle market in the area
on a short-term basis. The current expectation is that the plant will be
operational this week with reports pointing to early in the week. Even with two
plants down in Kansas at this point, the fact that cattle supplies have backed
away from fall highs, should limit the long-term pressure in the market given
that the Cargill plant is able to resume production in the near future. Futures
trade slipped lower Friday as traders continue to focus on a potential
correction developing following the strong upward market shift over the last
six weeks. It is uncertain if traders will remain content with the moderate
pressure developing in live cattle trade Friday, as trade may wander within a
narrow-to-moderate range the next couple of weeks. The ability to move and hold
prices above $114.50 per cwt in December contracts would be needed to help
stimulate additional long-term buyer support through the cattle complex. Feeder
cattle futures led the market lower late last week with the same cautionary
focus on traders looking for a light-to-moderate price correction. The
increased availability of young calves on the market through the next month
will continue to add uncertainty to the upward support in feeder cattle trade
through the end of October. Monday slaughter runs are expected at 113,000 head.