DTN Early Word Livestock Comments      06/24 06:17
   Mixed Trading Activity Ahead of Report

   It was a weird Thursday for the cattle complex with live contracts under
pressure while feeders posted strong gains. Higher cash prices in the North
failed to generate buying interest. Hogs took a beating as slower slaughter and
demand concerns increased trader anxiety.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady       Futures: Mixed       Live Equiv:    $196.36 -$1.19*

   Hogs: Lower         Futures: Higher      Lean Equiv:    $117.81 -$1.38**

   *Based on formula estimating live cattle equivalent of gross packer revenue.
(The Live Cattle Equiv. 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 just could not generate sufficient buyer interest to pull
futures into positive territory Thursday. It seemed the goal was to close the
chart gap left from last week, but once that was accomplished selling continued
as stops were triggered. Friday, traders are staring at the Cattle on Feed
report that will be released after the close. This may keep trading activity
subdued prior to the weekend. June live cattle have one more week remaining of
trade, and it is confusing indeed that futures are below cash. This week has
been interesting in the cash market as Southern cattle have traded steady to as
much as $2.00 lower than the previous week. However, Northern dressed cattle
increased $2.00 to $4.00 Thursday as packers stepped up to the plate. Boxed
beef was lower again with choice down $1.91 and select down $1.05. Beef in cold
storage during the month of May totaled 519.8 million pounds, up 25% from a
year ago.