DTN Early Word Livestock Comments      03/10 06:15
   Livestock Futures May Struggle

   Cattle futures plummeted for a second day, with contracts gaping lower on
the open on the news that the JBS plant strike is set to take place. Hog
futures closed lower but recovered from the lows earlier in the day. Packers
were actively looking for hogs.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Lower      Live Equiv: $286.65 +$3.00*

   Hogs: Higher            Futures: Higher     Lean Equiv: $107.35 +$3.05**

   *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 were under pressure for a second consecutive day. Lower cash
triggered the first round of selling on Friday, with cash trading $3.00 to
$4.00 lower. Over the weekend, the union representing JBS workers at the
Greeley plant gave the required seven-day notice that they were canceling the
contract extension. This opens the way for a strike on March 16. That did not
sit well with traders, resulting in the market leaving a huge gap on the open
as traders quickly moved to liquidate long positions. Some of the initial
losses were recovered, but a large price gap remained at the close of trading.
This may be difficult to overcome as the weakness may put pressure on cash
prices again this week. Boxed beef prices were higher on Monday, with choice up
$4.07 and select up $4.67. This may not be sufficient to support the market
today as uncertainty overshadows the market.