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DTN Early Word Livestock Comments      05/29 06:26
   Strong Product Prices Should Support Futures Wednesday

   Cattle futures had a cautious opening Tuesday and then struggled before
finding renewed buying interest. Feeder cattle futures did not share the same
sentiment, showing strength as a reaction to the Cattle on Feed report. Hogs
struggled the entire day, testing support from The February low.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed     Live Equiv: $229.77 +$1.18*

   Hogs: Higher            Futures: Higher    Lean Equiv: $109.25 +$4.26**

   *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.


   The Cattle on Feed report provided support to cattle futures Tuesday. Feeder
cattle were the recipients of strong buying interest from traders. The August
contract gained over $4.00 with later contracts not far behind. Live cattle
futures did not exceed the highs last week, but the market is supported with
June futures holding a discount to cash and continued gains in boxed beef.
Choice cuts gained $1.67 with select cuts up $1.71 on Tuesday. Strong demand
should keep packers aggressive with slaughter and buying in the country. This
will give feedlots confidence to hold for higher cash again this week. Feeder
cattle pushed higher as the report showed numbers will remain tight.
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