DTN Early Word Livestock Comments      06/06 06:13
   Cattle Futures May See Early Pressure

   Cattle were able to hold moderate gains Monday, partly in response to lower
corn and partly due to stronger boxed beef. Spread trading took place in hogs
with pressure on nearby contracts, while October and later contracts were
higher.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Mixed    Live Equiv:   $230.69 +$3.34*

   Hogs: Higher          Futures: Higher   Lean Equiv:    $96.15 +$4.34**

   *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 moved to new contract highs and closed at new contract highs as
demand remains strong. Boxed beef prices were strong with choice up $4.26 and
select up $5.80. This may give feedlots more incentive to hold out for higher
cash again this week. However, with higher showlists being posted, it is
possible feedlots may just be willing to take advantage of the current strong
cash price and sell cattle at steady money. Packers paid substantially higher
cash for cattle last week and were still able to defer 28% of the purchases.
However, as we saw the previous week, that may not mean much if they pull some
of those cattle ahead again. Feeder cattle continue to keep pace with the
strength of live cattle. They are also supported on their own with continued
higher prices paid at auctions.