DTN Early Word Livestock Comments      04/28 06:23
   High Cash Prices Should Support Market

   Live cattle futures closed last week mixed, as most cash cattle trade was
pushed until after the futures markets closed. Cash traded higher, which should
influence trading Monday. Hog futures were surprisingly strong as the one-day
weakness was reversed on Friday.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Higher      Live Equiv: $245.80 +2.17*

   Hogs: Lower           Futures: Mixed      Lean Equiv: $103.59 +$1.96**

   *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:

   Cash cattle trade pushed higher with most of the business after the futures
market closed Friday. Feedlots held out and were rewarded with live and dressed
cattle trading from $2.00 to $4.00 higher. The April and June live cattle
contracts closed at new highs, with April leading the way. Record-high prices
continue to be established in live and feeder cattle cash and futures. It does
not feel like the market has reached a point of resistance for beef prices or
feeder cattle being purchased. Packers have been slowing slaughter pace, but
that has yet to back-up cattle in the country to where feedlots want to move
cattle. The higher weights have only resulted in packers purchasing fewer
animals, but still receiving the same tonnage of beef. Tighter supplies and
strong demand support the market. The Commitments of Traders showed fund
traders as net buyers of 12,089 live cattle futures contracts, bringing their
net-long position to 115,353. Traders were net buyers of 2,548 feeder cattle
contracts, bringing their net-long position to 27,171.