DTN Early Word Livestock Comments      05/23 06:16
   Limited Cash Cattle Trade So Far This Week Points to Higher Prices

   Traders renewed their confidence in the cattle markets, becoming aggressive
buyers Thursday. Cash cattle trade has been light, but higher. Boxed beef
prices continue to increase. Hog futures were mixed, with nearby lower and
deferred contracts higher. Weekly exports showed China as a buyer.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Mixed       Live Equiv: $263.21 +$0.83*

   Hogs: Lower            Futures: Mixed      Lean Equiv: $106.09 +$0.23**

   *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:

   The cattle complex found strong buying interest Thursday as limited cash
trade points to higher prices and boxed beef continued to increase. More cash
sales were expected Thursday, but that did not happen. Limited trade points to
higher cash this week. Cash activity will take place and finish ahead of the
3-day weekend. Packers may need to raise bids to obtain the cattle they need,
as the feedlots remain unwilling to part with cattle at lower prices. Boxed
beef prices continue to climb, with choice up $1.38 and select up $0.67. The
Cattle on Feed report will be released this afternoon. The estimates are for
on-feed numbers as of May 1 at 98.5% of a year ago, with the range of estimates
from 98.3% to 99.0%. Placements are estimated at 96.9% and a range of 95.4% to
$104.0%. Marketings in April at 96.7% and a range of 96.0% to 97.1%.