DTN Early Word Livestock Comments      05/15 06:21
   Follow-Through Buying Expected Wednesday

   Livestock futures were positive across the board Tuesday as demand seemed to
show signs of improving. Feeder cattle led the charge with gains of more than
$4.00 effectively ending the downtrend. Hog futures closer higher, but could
not hold the initial strong gains.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Higher    Live Equiv: $223.28 +$4.06*

   Hogs: Higher            Futures: Mixed    Lean Equiv: $107.33 -$0.93**

   *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:

   Live cattle futures tested the top end of the trading range Tuesday. The
strength of boxed beef may result in some follow-through buying which could
push the market higher. Boxed beef showed impressive gains on Tuesday with
choice up $5.44 and select up $6.64. We seldom see that kind of strength in
boxed beef. This pushed choice back above $300 again. This changed the cash
cattle outlook this week as stronger demand may require packers to be more
aggressive with their cattle purchases. Feedlots will gain more confidence to
hold. Of course, one or two days of good boxed beef prices do not mean demand
has changed course, but it does indicate potential demand may not be as bad as
feared.