DTN Early Word Livestock Comments      03/06 06:22
   Cattle Markets Grapple With Uncertainty

   Live cattle were able to find some strength while feeder cattle backed away
from the strength on Wednesday. Traders are uncertain of the direction of cash.
Hog contracts through July took back what they gained, while later contracts
continue to push to new highs.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Lower     Live Equiv: $283.84 -$0.81*

   Hogs: Lower            Futures: Higher     Lean Equiv: $105.00 +$0.60**

   *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:

   Cash cattle have not yet traded, keeping traders uncertain over the strength
of cash. Boxed beef prices were mixed, with choice down $1.68 and select up
$0.26. The potential JBS plant strike is a cloud hanging over the market. As if
the beef industry does not have enough uncertainty to grapple with, the "Family
Grocery and Farmer Relief Act" was introduced on Thursday. It would require
meat companies with product lines from more than one species to divest and
limit their production to one species. Sen. Chuck Schumer, D-N.Y., introduced
the bill on Thursday. Any foreign-owned meatpacking company would be required
to sell its operations. The bill also would limit the number of cattle a packer
could slaughter from a feedlot of more than 24,000 head to a maximum of 10% per
day. At first glance, it seems this could increase beef prices to consumers
rather than reduce them. This may heighten uncertainty and increase volatility.