DTN Early Word Livestock Comments      10/23 06:25
   Livestock Market Uncertainty Fosters Liquidation

   The rhetoric from the government has created much uncertainty for traders,
triggering liquidation. Feeder cattle closed limit down with expanded trading
limits today. Hog futures were mixed, with nearby contracts showing weakness
and later contracts showing slight gains.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Mixed      Live Equiv: $269.24 -$0.15*

   Hogs: Lower             Futures: Mixed       Lean Equiv: $105.95 -$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:

   Cattle traders are uncertain what is going to take place based on government
reports. On one hand, President Trump indicated that steps will be taken to
reduce beef prices with the main point being the increase in beef imports. On
the other hand, the administration is taking steps to support the cattle
industry through other means and encourage beef production. This uncertainty
may be sufficient to reduce prices substantially as liquidation in the market
may continue. Former President Ronald Reagan, in his critique of government
overreach, famously said the nine most terrifying words are "I'm from the
government, and I'm here to help." It is uncertain what the impact of the
futures market over the past week will have on the cash cattle trade. Boxed
beef prices were mixed on Wednesday, with choice cuts down $1.28 and select up
$1.04.