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DTN Early Word Livestock Comments      05/28 06:24
   Livestock Futures Expected to Show Further Gains

   Cattle futures found strong buying interest that remained throughout the
day. The discount to cash may support the market. Hog futures bounced likely
from the oversold status, but supportive fundamentals remain uncertain.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Higher       Live Equiv: $292.02 +$0.69*

   Hogs: Higher           Futures: Higher       Lean Equiv: $104.89 -$0.50*

   *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:

   There was no specific news that caused the strength in cattle futures on
Wednesday. Some light cash trade took place at even money with last week, which
may have provided some support due to the discount the market carries to cash.
A steady or higher cash trade would provide traders with the confidence to
eliminate some of the futures discount. Boxed beef prices were mixed, with
choice up $1.82 and select down 1.01. Feeder cattle futures outpaced live
cattle as traders turned optimistic. Even with the strong gains, the August and
September contracts failed to close the chart gaps that remained above the
market. Those are likely to be closed today as follow-through buying is
expected.