DTN Early Word Livestock Comments      05/24 06:20
   Futures May Consolidate

   It was finally a day to see positive trade in all livestock markets. Cattle
did a classic rebound after a negative Cattle on Feed report. Hogs continued
higher, extending last week's strength.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower       Futures: Mixed     Live Equiv:    $195.67 +$1.28*

   Hogs: Steady        Futures: Mixed     Lean Equiv:    $114.67 -$0.06**

   *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:

   Cattle rebounded after being oversold into the Cattle on Feed report. The
market was overdone to the downside, resulting in the general pattern of moving
in the opposite direction of what the report would indicate. Gains were not
very impressive as the market continues to deal with the strong potential of
lower cash again this week. Sure, futures are holding a discount to cash; but
that might be warranted. Showlists are higher this week, which provides packers
the ability to bid lower as they certainly are not short bought on cattle. The
Cold Storage report showed beef supplies up 18% from a year ago. The Commitment
of Traders report showed funds as net sellers of 4,321 contracts, bringing
their net-long positions to 25,628 contracts.