DTN Early Word Livestock Comments      03/30 06:12
   Hog Futures May See Follow-Through Strength

   Livestock futures were higher, making an impressive end to last week. Cash
cattle traded steady, with slaughter holding a slow pace. Traders found
something in the hog market to trigger buying interest, resulting in futures
gapping higher on the open and extending the gains.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Mixed     Live Equiv: $288.96 +$1.16*

   Hogs: Higher             Futures: Higher     Lean Equiv: $102.64 +$1.33**

   *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 traded steady for the week, which was enough to generate buying
interest in futures. There had been a discount to cash, and that allowed room
for futures to move higher. Slaughter increased from the previous week, running
about 520,000 head. This is a good sign due to the Greeley plant remaining on
strike. Slaughter is continuing despite the disruption. Slaughter and carcass
weights will remain a big topic moving forward. The reduction in slaughter and
record-large carcass weights have been favorable for packers. Cash business is
expected to take place earlier this week due to the holiday-shortened trading
week due to Good Friday. Boxed beef prices were mixed, with choice up $3.12 and
select down $1.79. The Commitment of Traders report showed fund traders
increasing their long live cattle position by 4,450 futures contracts to a net
long of 107,593. They added 188 contracts to feeder cattle, increasing their
net-long position to 19,562.