DTN Early Word Livestock Comments      05/13 06:26
   Livestock Futures May Settle Back

   The livestock complex received positive news over the weekend, pushing
futures higher on Monday. Cattle received strength from the sharply higher
stock market and the closing of Mexican cattle imports. Hogs were supported by
the 90-day pause of tariffs with China.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Mixed      Live Equiv: $253.99 +$1.91*

   Hogs: Higher           Futures: Higher      Lean Equiv: $102.08 -$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:

   June live cattle gapped open and held much of its gains on Monday. It
reached back to the high at which the April contract was when it went off the
board. All live cattle contracts closed at new contract highs. The sharply
higher stock and equity markets provided support. Further support came from the
WASDE report, which showed USDA's estimate for steer prices in the second
quarter up $13 from the April report to an average of $217; the third quarter
up $10, averaging $216; and the fourth quarter up $13, averaging $220. Boxed
beef prices were higher, with choice up $2.17 and select up $4.06. Feeder
cattle futures gapped higher in all contracts, with the August and September
contracts closing $6.07 higher. The closing of the Mexican border for cattle
imports provided the catalyst to trigger the aggressive buying interest.