DTN Early Word Livestock Comments      06/17 06:12
   Strong Demand Provides Support

   The price retracement in cattle futures was short-lived Monday, with
contracts nearly regaining the losses of Friday. Demand remains strong. Hog
futures moved to new contract highs with strong support from cash and cutouts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher           Futures: Higher      Live Equiv: $277.77 +2.93*

   Hogs: Higher             Futures: Higher     Lean Equiv: $125.34 +1.42**

   *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:

   The cattle market showed resiliency on Monday as the concern that developed
from steady cash and an overbought market dissipated. Demand remains incredibly
strong. This should provide confidence to feedlots to hold for higher cash this
week. The steady cash seen for Northern dressed cattle last week was thought to
be a warning shot across the bow, but the strong boxed beef prices Monday may
put that idea to rest. Boxed beef prices were higher, with choice up $4.23 and
select up $3.97. There seems to be no stopping demand, and packers must
maintain slaughter to meet that demand. Packers purchased 25% of the cattle
last week for deferred delivery, but that has not made any difference over the
past two months and is not expected to make a difference this week. Feeder
cattle are in demand with feedlots paying exorbitant prices.