DTN Early Word Livestock Comments      08/26 06:23
   Fundamental Support Remains Elusive

   Cattle futures have not been able to shrug off the recent negativity in the
market. Light cash trade shows weaker cash developing. Hog futures were unable
to find support and set new contract lows as pork products show weakness.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Higher      Live Equiv: $284.65 +$2.26*

   Hogs: Lower            Futures: Mixed      Lean Equiv: $104.68 -$2.26**

   *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:

   Light cash cattle trade took place on Tuesday, indicating significantly
lower prices may be experienced again this week. Packers are taking advantage
of the market's bearishness to buy at lower prices, while boxed beef increases,
improving margins. Boxed beef prices on Tuesday were higher, with choice up
$2.84 and select up $3.96. The cattle market is caught in a downdraft with live
cattle futures closing at the lowest level since Dec. 1, 2025. Feeder cattle
futures have followed the same pattern and are near closing a chart gap that
has remained open since then. However, it is uncertain whether closing the
chart gap would turn technical traders into aggressive buyers in the current
market environment. Reports are that 700 head of cattle from Mexico moved into
the U.S. on the first day the border was reopened. There were no reports as to
the age and weight classes of those cattle.