DTN Early Word Livestock Comments      05/05 06:21
   Traders Should Continue to Support Market

   It was a strong close to the week with traders supporting livestock futures
Friday. Cattle pushed higher on firm cash. Hogs rebounded after liquidation ran
its course.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Higher      Live Equiv: $250.13 +$0.10*

   Hogs: Steady          Futures: Higher      Lean Equiv: $103.93 +$1.92**

   *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:

   New contract highs in cattle have been nearly an everyday occurrence and are
not expected to be over. The strength of cash last week was a sight to behold
after the previous week's strength. Southern live cattle traded $5.00 to $6.00
higher, with Northern dressed cattle trading $8.00 higher. It is doubtful
packers purchased many cattle for deferred delivery last week, which may set
the stage for higher cash this week. Traders will watch boxed beef prices to
see how well they perform. Boxed beef prices were mixed Friday, with choice
down $0.27 and select up $1.07. It is difficult to determine whether feeder
cattle are leading the complex or are following live cattle, but August feeder
cattle futures are not far from reaching $300 and could achieve that this week.
The Commitments of Traders report showed fund traders adding 7,140 live cattle
futures contracts, bringing their net-long position to 122,493. The funds
reduced their net-long feeder cattle position by 308 futures contracts to
26,863.