DTN Early Word Livestock Comments      08/18 06:08
   Fort Morgan Beef Facility to Resume Operations

   Cattle futures began the day with strength, but after a short period of
time, prices eroded, resulting in a mixed close. Hog futures could not find
sufficient interest to move the needle much by the close. Cash and cutouts
continued to struggle.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Higher      Live Equiv: $278.86 +$5.15*

   Hogs: Higher            Futures: Mixed      Lean Equiv: $105.79 -$1.15**

   *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 began trading higher with traders aggressive, most likely from short
covering. Once that ran its course, futures continued to slide, resulting in a
mixed close. The bullish news after the close should result in stronger prices
Tuesday. Workers at the Fort Morgan, Colorado, beef plant voted to ratify a
five-year agreement. Employees will return around Aug. 24, with harvest to
resume the week of Sept. 7. The Fort Morgan plant can harvest up to 4,700 head
per day. Boxed beef prices exploded on Monday with choice up $4.27 and select
up $13.02. I cannot remember the last time a boxed beef category showed that
much strength in one day. The combination of these items should provide support
to the market Tuesday. Feeder cattle prices in the country remained soft in
response to the recent pressure on cattle futures.