DTN Early Word Livestock Comments      05/30 06:18
   Traders May Begin Week With Caution

   Live cattle futures closed in positive territory with all contracts posting
new highs. Demand continues to remain strong in the face of tightening
supplies. Feeder cattle could not follow the same pattern, closing lower as
traders positioned for the weekend. Hogs plummeted with no short-covering
taking place as cash continued lower.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Mixed    Live Equiv:   $224.17 +$2.05*

   Hogs: Steady          Futures: Mixed    Lean Equiv:   $89.28 +1.06**

   *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:

   Higher cash cattle last week propelled live cattle futures to new contract
highs. It is amazing to see strong beef demand as prices continue to rise at
the retail and food service level. Consumers continue to work beef into their
food budget. Tightening beef supplies keep packers needing to step up to the
plate. There was a report that some packers had purchased cattle for delivery 2
to 3 weeks out and then took them for delivery a couple days later as they
needed cattle. This may limit the amount of cattle that are purchased and
available with time. Boxed beef was strong Friday with choice up $3.99 and
select up $0.38. The Commitment of Traders report showed funds adding 2,003
long futures, bringing their net-long futures position to 101,040 contracts.
Feeder cattle long positions increased by 2,085 contracts to a net long 15,987
futures contracts.