DTN Early Word Livestock Comments      05/07 06:15
   Strong Product Values May Support Futures

   Live cattle futures had minimal losses in contracts Monday, other than the
front-month June. Feeder cattle were under more pressure with triple-digit
losses. Hog futures could not find sufficient buying interest to move futures
to positive territory. The June contract fell and closed below support.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Higher   Live Equiv:   $220.18 +$2.70*

   Hogs: Higher            Futures: Higher  Lean Equiv:   $105.39 +$1.38**

   *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:

   Traders began the week with caution and concern over demand. Slaughter was
higher last week but that provided no guarantee it would continue. Higher cash
the previous week was unexpected but gave feedlots hope that cash will be no
worse than steady this week. However, packers purchased cattle for deferred
delivery again last week which may keep them less aggressive this week even if
they maintain a higher slaughter pace. Boxed beef prices were strong Monday
with choice up $4.56 and select up $2.10. Feeder cattle showed pressure as
buyer resistance has developed with feeder cattle prices showing some weakness.