DTN Early Word Livestock Comments      05/16 06:21
   Traders Wait for Cash Activity Thursday

   Cattle futures were able to post moderate gains Wednesday as traders seem to
be waiting for cash activity to surface. That will determine whether live
cattle will break out of its range. Hog futures closed mixed with June showing
the most pressure.

Robin Schmahl
DTN Contributing Analyst



   Cattle: Steady          Futures: Higher    Live Equiv: $224.68 +$1.40

   Hogs: Lower            Futures: Mixed     Lean Equiv: $107.52 +0.19**

   *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:

   The June live cattle contract holds a discount to cash and cash trading this
week will determine whether June will break above the sideways trading range or
remain entrenched in it. Cattle have not yet traded, leaving traders guessing
as to what will take place. Higher boxed beef prices could increase packer bids
but they may continue to hold back as reduced slaughter is improving margins.
Demand will need to be met but cattle weights are higher, requiring few cattle
for the required tonnage. Boxed beef prices were higher with choice up $2.38
and select up $0.49. It may take more than higher boxed beef prices to increase
packer bids. There are sufficient cattle available for demand. Weekly export
sales will be released Thursday, but may not have much influence.