DTN Early Word Livestock Comments      05/04 06:08
   Hog Futures Need to Hold Support

   The livestock complex was lower across the board. Cattle futures had higher
cash already factored in. After making new highs, some traders took profits
ahead of the weekend. Hog futures declined as fundamental support remains
elusive.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Mixed      Live Equiv: $288.20 -$0.32*

   Hogs: Lower              Futures: Higher    Lean Equiv: $103.91 +$0.91**

   *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 pushed to new contract highs on Friday, but they slipped as
sellers became more aggressive ahead of the weekend. Strong cash cattle trade
dominated the week, with cash trade having already developed on Tuesday. This
carried throughout the week with Southern live cattle trading as much as $10.00
higher and Northern dressed cattle up to $14.00 higher. Boxed beef prices were
lower on Friday, with choice down $0.41 and select down $1.12. However, that
does not change the fact that beef demand is strong, and packers need to step
up slaughter. It is doubtful that cash this week will repeat last week's
performance, but cash prices may remain steady. The Texas Department of
Agriculture confirmed a New World screwworm case about 119 miles from the Texas
border near Zapata, Texas. This will assuredly keep the border closed
indefinitely. The Commitment of Traders report showed the fund traders as net
sellers of 1,256 live cattle contracts, reducing their net-long position to
131,560. They reduced their long position in feeder cattle by 1,740 contracts
to a net long of 18,608.