DTN Early Word Livestock Comments      05/09 06:16
   Further Gains Expected in Cattle Futures

   Cattle futures pushed to new contract highs Thursday as stronger than
anticipated cash cattle trade developed. Feeder cattle futures led the way
higher. Hog futures could not find solid direction, with contracts closing
mixed. Continued weakness was seen in pork cutouts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Higher      Live Equiv: $253.46 -$0.10*

   Hogs: Lower            Futures: Mixed     Lean Equiv: $100.05 -$1.04**

   *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:

   Both live cattle and feeder cattle futures moved to new contract highs
Thursday after taking a breather Wednesday. Support stemmed from Southern cash
cattle trading $1.00 to $2.00 higher while Northern dressed cattle traded $6.00
higher. Packers were unable to surround themselves with sufficient cattle last
week and likely are in the same position this week. Packers have been slowing
the slaughter pace to hopefully back up cattle and improve margins, but that
has been to no avail. Beef prices continue to surge higher as demand remains
strong. Boxed beef prices were mixed on Thursday, with choice up $1.47 and
select down $0.80. This will have little impact on traders as the trend remains
up. The negative aspect of the market is that weekly export sales were dismal
at only 7,600 metric tons (mt), down 41% from the previous week. The high
prices and tariffs are having an impact on international demand.