DTN Early Word Livestock Comments      05/15 06:28
   Follow-Through Weakness Anticipated Thursday

   Cattle futures made new highs Wednesday, but aggressive selling erupted and
contracts fell through the last two hours of trading. Hogs followed a similar
pattern with futures turning lower about the same time, likely due to spillover
pressure.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Lower       Live Equiv: $254.71 -$0.09*

   Hogs: Lower            Futures: Mixed      Lean Equiv: $102.71 +$0.12**

   *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 initially moved to new highs Wednesday, as it seemed the
strong uptrend would continue. However, the overbought status of the market and
record-high prices made traders nervous, and selling was triggered. Selling
pressure increased as the market moved lower and more traders decided to exit
due to the possibility of a larger price correction. Cash cattle have not yet
been traded for the week. Psychologically, this could pressure cash as feedlots
may want to move cattle more aggressively with the weakness of futures.
Memorial Day is a little over a week away, after which demand may slow. Boxed
beef prices were mixed with choice down $0.74 and select up $1.38, which should
not be a concern for traders.