DTN Early Word Livestock Comments      07/25 06:18
   Friday Is a Double-Report Day

   Cattle futures pulled back Thursday as anticipated due to traders
positioning ahead of two major reports Friday. The market remains bullish, but
the reports may increase volatility next week. Hog futures held their own again
on Thursday, closing mixed as the market consolidates.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Mixed        Live Equiv: $266.99 +$0.56*

   Hogs: Higher           Futures: Mixed        Lean Equiv: $123.50 +$0.30**

   *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 futures closed lower Thursday as anticipated with traders positioning
ahead of the reports. Both the Cattle on Feed report and the bi-annual Cattle
Inventory report will hold significant importance. Analysts estimate cattle
on-feed numbers at 99.1% of a year ago, with a range of 99.0% to 100.0%.
Placements are estimated to average 98.1% with a range of 96.8% to 101.0%.
Marketings are estimated at 96.1% with a range of 95.9% to 96.9%. The bi-annual
Cattle Inventory report will show inventory as of July 1. Due to the report
having been discontinued last year, the numbers will be compared to two years
ago. The estimates are for all cattle and calves at 98.1%. Beef replacement
heifers are estimated at 97.0% with a range of 95.4% to 100.0%. Dairy
replacement heifers at 100.6% with a range of 98.5% to 102.9%. The annual calf
crop is estimated at 97.8%. A light volume of cattle traded on Thursday at
$1.00 higher, likely setting the stage for the week. Boxed beef prices closed
higher with choice up $0.57 and select up $1.61.