DTN Early Word Livestock Comments      05/02 06:22
   Cattle Futures May Push to New Highs

   There is no ceiling on cash as packers aggressively purchase cattle. They
were short-bought and may remain that way as they may buy only what they need.
Hog futures were mixed at the close Thursday as traders seemed uncertain of
which way the market would move in the near term.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Higher      Live Equiv: $250.03 -$0.51*

   Hogs: Steady           Futures: Mixed      Lean Equiv: $102.01 -$0.15**

   *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 seems to be no ceiling to what consumers are willing to pay for beef.
Export sales were 25% higher than the previous week, with international
interest continuing. Packers stepped up aggressively with Southern live cattle
trading $4.00 to $6.00 higher and Northern dressed cattle $8.00 to $10.00
higher. Record-high cash cattle and feeder cattle prices are a sight to behold.
It will eventually run its course, but a price ceiling is nowhere to be seen.
Boxed beef prices were mixed on Thursday, with choice down $2.14 and select up
$2.26, but that will have little consequence on the overall market. It is
doubtful packers will purchase many cattle for deferred delivery this week,
with the large price increases leaving them short-bought moving into next week.
Feeder cattle opened higher on Thursday, but could not hold the gains as
continued trade was less exuberant.