DTN Early Word Livestock Comments      06/06 06:21
   Cattle Futures May Hold Friday

   Cattle futures exploded Thursday with traders buying with both hands. The
substantial increase in cash fueled the frenzy. Contracts left a gap on the
open and never looked back. Hog traders were rather oblivious to the strength
in cattle and futures closed mixed with mixed fundamentals.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Higher      Live Equiv: $267.86 +$0.81*

   Hogs: Lower            Futures: Mixed      Lean Equiv: $113.94 +$1.50**

   *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:

   Cattle futures gapped open Thursday and never looked back. All contracts
made new highs as traders were unafraid to purchase aggressively at these high
prices. The higher cash trade from Wednesday spurred the strength, which
received greater support as cash cattle traded substantially higher on
Thursday. Packers stepped up to the plate and paid $8.00 to $10.00 more for
Southern live cattle and $13.00 more for Northern dressed cattle. Traders added
to the initial strength of futures with greater gains in the nearby contracts.
There seems to be no stopping this market, with supplies remaining tight and
demand holding. The lower weekly export volume did not influence the market.
Boxed beef prices were mixed with choice up $1.69 and select down $0.11.