DTN Early Word Livestock Comments      05/14 06:20
   Traders May Hold For Cash Direction

   Traders were not as aggressive in cattle futures Tuesday as they were on
Monday. The market may drift until there is an indication of cash prices. Hogs
were higher Tuesday as there seems to be renewed optimism over demand.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Mixed       Live Equiv: $254.80 +$0.81*

   Hogs: Higher           Futures: Higher      Lean Equiv: $102.59 +$0.51**

   *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:

   Traders turned cautious Tuesday after Monday's strength. They may wait until
cash cattle trade before significantly moving futures. New contract highs were
confined to 2026 contracts, with February and April nearly reaching $210.
Packers were able to purchase a higher number of cattle for deferred delivery
last week, which may allow them to be less aggressive this week. However, if
demand remains as it has been, they may need to bid higher to obtain the volume
they need for slaughter. Boxed beef prices were mixed on Tuesday with choice up
$1.96 and select down $0.76. However, with the gains in futures already this
week, there is little reason to believe feedlots will let cattle go at lower
prices.