DTN Early Word Livestock Comments      04/06 06:38
   Cattle Futures Supported by Strong Cash

   Cattle futures closed higher on Thursday, and rightly so, with cash cattle
trading substantially higher later in the day. Packers had to step up and pay
more for cattle. Hog futures struggled to find footing and ended the day in
negative territory.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher           Futures: Mixed      Live Equiv: $286.24 -$1.28*

   Hogs: Higher             Futures: Higher     Lean Equiv: $105.03 +$1.76**

   *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:

   Cattle futures closed on Thursday, posting six days of consecutive gains.
Traders anticipated higher cash trade, and they were rewarded. Packers had to
step up to purchase cattle, resulting in Northern dressed cattle trading as
much as $13.00 higher, with southern live cattle at $9.00 higher. Boxed beef
prices on Friday were lower, with choice down $1.80 and select down $1.51. The
margins that packers gained over the past few weeks disappeared, rendering
their efforts to slow the cattle slaughter useless for the long term. The
cattle supply is just too tight and demand remains strong. Workers at one of
the nation's largest meatpacking plants in Greeley have agreed to return to
work and halt a three-week strike after negotiations are set to resume,
according to an announcement by labor union representatives on Saturday. The
Chinese government confirmed foot-and-mouth disease in two herds, and it was
reported on April 2 that local governments in Xinjiang and Gansu implemented
culling and disinfection measures following the discovery. The Commitment of
Traders report showed the fund traders adding 11,960 long futures positions to
increase their total long positions to 119,553. They added 1,285 long feeder
cattle positions, moving their total long positions to 20,847 contacts.