DTN Closing Livestock Comment 10/22 16:28
   Feedlot Placements Below Expected Levels

   The biggest surprise in the Oct. 1 USDA Cattle on Feed report was
lower-than-expected cattle placements in September. Total placements are 97% of
year-ago levels, not only well below the 101.4% expected, but well below the
entire estimated range. Markets leading up to the report posted significant
weakness, creating potential market swings next week.

By Rick Kment, DTN Contributing Analyst

   GENERAL COMMENTS:

   From Friday to Friday, livestock futures scored the following changes: Oct
live cattle off $1.87, Dec live cattle off $2.65, Oct feeder cattle off $2.15,
Nov feeder cattle off $4.53, Dec lean hogs off $4.95 and Feb lean hogs off
$4.70. Sharp losses in cattle futures developed as traders tried to prepare for
the afternoon Cattle on Feed report. Triple-digit losses were seen in both live
cattle and feeder cattle markets, with the most significant pressure in
deferred feeder cattle trade. Hog futures were unevenly mixed as traders tried
to stabilize the market following earlier-week losses. On-feed numbers were
fractionally below estimated levels, although the major shift was seen in
lower-than-expected cattle placement numbers. This is likely to spark early
week support in all cattle trade Monday morning. Hog prices moved higher on the
National Direct Afternoon Hog Report in moderate trade, adding $0.20 with a
weighted average of $65.63 on 6,607 head. December corn is up 5 3/4 cents per
bushel, and December soybean meal is up $3.40 per ton. The Dow Jones Industrial
Average is up 73 points, and the NASDAQ is down 125 points.