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DTN Early Word Livestock Comments      07/29 06:30
   African Swine Fever Confirmed in Dominican Republic

   Cattle held well Wednesday in the anticipation of higher cash trade this
week. Boxed beef continues to march higher. The confirmation of African swine
fever in the Dominican Republic sent concern through the market, causing hog
futures to plummet. The sell-off was likely not warranted, but a knee-jerk
reaction that may be difficult to overcome.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher     Futures: Mixed        Live Equiv:    $203.28 +$2.26*

   Hogs: Lower        Futures: Mixed       Lean Equiv:    $131.78 +$1.48**

   * based on formula estimating live cattle equivalent of gross packer
revenue. (The Live Cattle Equiv. 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:

   Live cattle futures tried valiantly Wednesday to regain what was lost
Tuesday, but to no avail. Cash did not provide any solid direction, but the few
that did trade were $1.00 to $3.00 higher. Packers are reaping greater benefit
from higher boxed beef prices but will be reluctant to pass this along by
increasing their bids. Feedlots have been holding firm with higher asking
prices, which they fully expect to get by the end of the week. There is some
concern developing over the rise of COVID cases again and how that might impact
demand. Some renewed restrictions may result in some impact on demand, but
there is no indication of another economic shut down. Thus, this is something
to think about, but not dwell on. Weekly export sales will be released Thursday
morning, which may provide some initial market direction until there is more
volume of cash cattle traded.
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