DTN Early Word Livestock Comments      11/03 06:02
   Pork Cutouts Rebound Monday

   Monday was friendly for pork cutouts climbing $2.18 on the carcass to $72.65
and hams also jumped $3.73 higher. Futures had some small gains in the deferred
months but after the pressure the market has been under lately, any win no
matter how small is appreciated by producers.

Robin Schmahl
DTN Contributing Analyst

                        Futures     Equiv
Cattle:     Steady      Higher      Live       $270.12     +$0.81 *
Hogs:       Higher      Higher      Lean        $79.05     +$2.18 **

   *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:

   Monday did not have the close for live cattle that the market was hoping
for. Some early strength in the day made it seem like Friday's move lower was a
month-end move only. Unfortunately, futures lost ground by the close. Feeder
cattle did manage to hang on to some small gains, closing $0.65 to $1.025
higher. Cash markets were weaker last week and much of it is due to a temporary
surge in available cattle ready to slaughter. It is said that in 2-3 weeks, the
market will have worked through this heaviness in available fats.