DTN Early Word Livestock Comments      04/29 06:05
   Higher Cash Will Support Cattle Futures

   Traders set their sights on contract highs in live cattle and achieved it
and then some. Feeder cattle were strong, but are still below contract highs.
Early cash pushed the market higher. Hogs moved in the other direction with the
market struggling to find support.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher           Futures: Mixed      Live Equiv: $288.11 -$0.29*

   Hogs: Higher             Futures: Mixed     Lean Equiv: $104.50 -$0.97**

   *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:

   Cattle futures increased substantially on Tuesday, fueled by cash trade
taking place. Cash was reported at $4.00 higher in the South. It is unusual to
see cash cattle trade this early in the week. This indicates packers are
short-bought and need to procure cattle to fill slaughter schedules. Cash
prices may increase further as feedlots will hold out for higher prices. Even
though their margins are negative, they need to satisfy demand. Boxed beef
prices were mixed, with choice down $0.66 and select up $0.18. Live cattle
futures moved to new contract highs in all but the April contract, which will
cease trading on Thursday. Feeder cattle were strong but did not achieve new
highs. Feeder cattle traded higher in the country in response to the strength
in futures over the past few days.