DTN Early Word Livestock Comments      05/14 06:11
   Livestock Futures May Show Further Strength

   It was a crazy day for cattle futures on Wednesday. Futures climbed steadily
shortly after the market opened, with live cattle leading the way. Hogs posted
a similar pattern with the price rally beginning at the open and rising sharply.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Mixed      Live Equiv: $288.25 -$1.71*

   Hogs: Higher             Futures: Higher    Lean Equiv: $102.45 +$0.51*

   *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 market was driven by some light Northern cash sales at $410,
$7.00 higher than last week. It is incredible to see cash trade over $400.
There is a strong possibility that cash could even trade higher before the week
is done. Some light trade took place in the South at the beginning of the week
at $2.00 to $3.00 higher, but nothing has occurred since. It looks like those
prices may be higher than that when trade develops. Futures posted substantial
price ranges on Wednesday, with live cattle $6.00 to $7.00 and feeder cattle
around $10.00. Interestingly, live cattle futures showed stronger gains than
feeder cattle, but the discount to cash was significant and it needed to be
reduced. Boxed beef certainly did not shine on Wednesday, with choice down
$2.05 and select down $2.69.