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DTN Early Word Livestock Comments      06/11 06:20
   Higher Cash Should Support Cattle Futures

   Cattle futures experienced a significant price swing Tuesday, with live
cattle moving over $3.00 and feeder cattle over $4.00 from low to high. Light
cash trade turned the market higher. Hog futures had some spread unwinding on
stronger cash and cutouts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Higher       Live Equiv: $270.97 +1.54*

   Hogs: Lower           Futures: Mixed      Lean Equiv: $116.70 +0.59**

   *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 traded in the red Tuesday morning but quickly turned higher
at midday as some light trading took place in Texas at $5.00 higher than last
week. Cash was anticipated to be higher this week, but for trade to begin on
Tuesday is unusual, indicating packers may remain aggressive this week. This
may set the stage for the rest of the week. Current live cattle futures hold a
significant discount to cash that will either need to be made up or cash will
need to fall. The fundamentals would suggest prices will need to increase.
Boxed beef was higher with choice up $4.51 and select up $0.91. Boxed beef
prices are again trending higher after mixed prices last week. New contract
highs continue to be made for feeder cattle, with prices in the country
steadily increasing.