DTN Early Word Livestock Comments      06/17 06:15
   Beef Demand Supports Futures

   Cattle futures uncovered substantial buying interest on Tuesday, with live
cattle making a run toward contract highs. Traders see that the recent news has
not impacted demand, providing confidence to own futures. Hog futures struggled
with nearby contracts under pressure.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Mixed      Live Equiv: $291.82 +$2.33*

   Hogs: Lower             Futures: Mixed     Lean Equiv: $102.16 -$1.55**

   *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 opened near where they closed on Monday and moved
substantially higher from there. News of the New World screwworm has not
impacted beef demand. Cattle supplies remain tight and will remain that way for
some time to come. Traders do not seem concerned about the Cattle on Feed
report that will be released after the close on Thursday and ahead of a
three-day weekend. Or traders may feel the report will be bullish and want to
buy into the market ahead of it. The average trade guess for the report is for
on feed at 102.3% of a year ago. Placements at 92.8% and marketings at 89.0%.
Boxed beef prices were higher, with choice up $4.53 and select up $0.44. The
strength this week of boxed beef and the increase in futures may result in
packers having to pay higher prices for cattle.