DTN Early Word Livestock Comments      10/30 06:05
   USDA Announces $472.5 Million Food Purchase

   USDA announces Agricultural Marketing Service (AMS) Section 32 purchases to
buy $472.5 million worth of food from American-grown and American-raised
producers, and $41 million of pork was included in the announcement.

Robin Schmahl
DTN Contributing Analyst

                        Futures     Equiv
Cattle:     Steady      Lower       Live       $270.53     -$1.80 *
Hogs:       Higher      Higher      Lean        $77.46     -$1.76 **

   *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:

   While beef was left out of USDA's announcement Thursday morning about
purchasing American-grown and raised food products, cattle markets did get an
announcement of their own later in the afternoon. USDA Rural Development
announced a loan guarantee for a new beef processing facility in Dimmitt,
Texas. USDA's Business and Industry Guaranteed Loan Program (B&I Program) will
use funds to support construction of a locally owned USDA inspected 400 head
processing facility.