DTN Early Word Livestock Comments      05/27 06:08
   Further Choppiness Expected in Livestock Markets

   Cattle futures had little negative reaction to the Cattle on Feed report.
Futures tried to make a strong increase during the day, but ran out of steam.
Hog futures took it on the chin again with deferred contracts under significant
pressure.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Higher      Live Equiv: $291.33 +$2.33*

   Hogs: Higher            Futures: Higher      Lean Equiv: $105.39 +$2.59*

   *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 defied the bearishness of the Cattle on Feed report, pushing
higher early in the day, but hit resistance, triggering further selling. The
recent decline had already factored in most of the negativity, but traders saw
little reason for the market to rebound. However, beef movement seems to have
been strong over the holiday, with boxed beef prices substantially higher.
Choice boxed beef was up $2.63, with select up $5.30. This may provide support
today, as cash is expected to be steady this week. Feeder cattle futures
mirrored live cattle with early strength running out of steam.