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DTN Early Word Livestock Comments      04/23 06:12
   Follow-Through Price Strength Expected Tuesday

   Livestock futures were higher across the board Monday with cattle traders
reacting to the Cattle on Feed report and hogs moving higher due to strong cash
and continued strength of cutouts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Higher  Live Equiv:   $219.54 +$0.30*

   Hogs: Higher          Futures: Higher  Lean Equiv:  $107.66 +$1.61**

   *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 gapped higher in the open Monday and never looked back. The bullish
implications of the Cattle on Feed report provided the fodder needed for
traders to buy aggressively into the market. The concerns about impact on beef
demand due to avian flu in dairy cattle were put on the back burner and this is
possibly becoming old news. It has not been discovered in beef cattle and it is
not a threat to the beef supply. The market seems to be moving back to the
fundamentals of tight cattle numbers that likely will be seen throughout this
year. The downside to price potential is packers continue to reduce processing
speeds in an attempt to back up cattle and improve margins. Boxed beef prices
were higher with choice up $0.26 and select up $1.04.
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