DTN Early Word Livestock Comments      05/21 06:17
   Cash Expectations May Provide Limited Volatility

   Cattle futures did not provide much excitement Tuesday as traders are
uncertain over the strength of cash and the upcoming Cattle on Feed report.
Hogs followed a similar pattern with futures mixed at the close. There was
limited volatility in deferred contracts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower         Futures: Mixed       Live Equiv: $261.26 +$2.11*

   Hogs: Higher          Futures: Mixed      Lean Equiv: $106.34 -$0.57**

   *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 were content to let the cattle market drift Tuesday, uncertain over
price direction for the rest of the week. Cash is a concern as packers seem to
have purchased an amount of cattle ahead. This may leave them in a position to
offer less money to feedlots. However, packers may pay steady money for cattle
and continue to purchase for deferred delivery this week to put them in a
better position next week after the Memorial Day weekend. The market continues
to be supported by strong boxed beef prices. Boxed beef on Tuesday showed
choice up $3.94 and select up $0.85. Feeder cattle futures followed live cattle
with limited interest until further direction is seen.