DTN Early Word Livestock Comments      06/23 06:24
   Traders Torn Between Cattle on Feed Report, Lower Cash

   Traders did not want to support the market ahead of the Cattle on Feed
report Friday and sold some positions due to cash weakness. Hog futures
remained supportive on strong pork demand and trader interest in remaining long
the market.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower            Futures: Lower      Live Equiv: $284.14 -$0.90*

   Hogs: Higher             Futures: Higher     Lean Equiv: $128.00 +$3.16**

   *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:

   Cash cattle declined in both categories after an impressive run higher.
Surprisingly, traders did not liquidate more heavily than they have, but time
will tell. The Cattle on Feed report was neutral to friendly, with placements
being the supportive category of the report. Placements were 92% of a year ago
and 2.9% below the average estimate. That will keep the supply of cattle tight
through the year. On-feed numbers were right in line with the estimate at 99%.
Marketings were at 90% and slightly below the estimate of 90.3%. The offsetting
influence to the friendly report was the lower cash trade last week. Northern
dressed cattle sold $4.00 lower at $376 while Southern live cattle sold $5.00
lower at $231. Lower cash last week may be the focus this week rather than the
Cattle on Feed report. The Commitments of Traders report will be released
Monday due to last week's holiday.