DTN Early Word Livestock Comments      05/06 06:16
   Mixed Trading Activity Expected Monday

   The cattle complex closed the week mixed with June live cattle and nearby
feeder cattle futures lower. Hog futures could not hold their head above water,
ending a dismal second half of the week.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Higher   Live Equiv:   $217.48 +$0.57*

   Hogs: Steady           Futures: Mixed   Lean Equiv:   $104.01 +$0.22**

   *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 traded higher for the week with Southern cattle gaining $2.00
and Northern cattle increasing $1.00. June live cattle futures are at a
discount to cash as traders remain concerned over the level of demand through
May and June. Cattle futures did not rebound as much as anticipated once it was
confirmed the H5N1 virus was not found in ground beef. It is going to take
solid demand to turn the trend back up. That was lacking again in boxed beef
with choice up by $1.30 and select down $0.33. The Commitments of Traders
report showed funds reducing their net long live cattle positions by 640
contracts to a current net-long position of 39,473 futures contracts. Funds
were net sellers of 172 contracts, reducing their net-long positions in feeder
cattle to 4,629 contracts.