DTN Early Word Livestock Comments      04/13 06:20
   Cattle Futures Have Higher Cash Factored In

   There seems to be nothing to slow the cattle market. Renewed buying interest
pushed live cattle to new contract highs. Hog futures struggled into the close
as traders lacked conviction.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Mixed      Live Equiv: $282.66 +$0.11*

   Hogs: Higher            Futures: Higher     Lean Equiv: $104.78 +$1.32**

   *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:

   Limited cash trading activity took place last week, leaving the market in a
precarious position of uncertainty. It is uncertain over the volume of cattle
sales through Friday, as there was little information regarding transactions in
the South. However, some sales were reported on Saturday, with some live sales
in the North reported from $3.00 to $5.00 higher. This creates an interesting
scenario as boxed beef prices were lower on Friday. Choice declined $0.19, with
select down $0.23. The renewed increase in the crude oil price may have an
impact on demand as consumers adjust to higher fuel prices. The talks breaking
down with Iran over the weekend may indicate that higher fuel prices will
continue. The Commitment of Traders report showed fund traders increased their
net-long position in live cattle by 9,863 futures positions to 129,416
contracts. They added 268 futures contracts to bring their net-long position in
feeder cattle to 21,115.