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DTN Early Word Livestock Comments      05/22 06:19
   Further Strength in Cattle Futures

   Cattle are on a roll and trending higher. Higher boxed beef indicates strong
demand and packers will need to supply it. Hog futures remained under pressure
with lower lows again made. Cutouts continue to struggle.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher           Futures: Higher    Live Equiv: $229.79 +$0.57*

   Hogs: Higher             Futures: Higher    Lean Equiv: $106.55 -$1.08**

   *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 opened higher Tuesday and closed higher with August live
cattle above $180, the highest close since March 22. The February contract
closed above $190. Demand continues to support the market with boxed beef
showing further strength with a gain of $0.32 for choice and $1.52 for select.
This will give feedlots confidence to hold out for more this week. The Cattle
on Feed report will be released Friday after the close with traders likely
beginning to turn their attention to it Wednesday. Traders are facing two
aspects of the market that will impact trading activity --  the Cattle on Feed
report and the three-day weekend. The Friday of Memorial Day weekend generally
has significantly lighter trade as the attention is focused on the kick-off
weekend of the summer. Then there is the report that will not be traded until
next week on Tuesday. Traders may reduce their risk ahead of the weekend. The
estimates for the report are for on-feed number May 1 of 99.1% of a year ago.
Placements in April at 93.3% and marketings at 109.5%.
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