DTN Early Word Livestock Comments      06/29 06:17
   Hog Futures May Show Further Short-Covering

   Cattle futures declined heading into the weekend. Cash cattle did not trade
as well as hoped, potentially indicating price resistance may be increasing.
Hog futures reacted positively to the Hogs and Pigs report with October and
later contracts posting triple-digit gains.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Lower      Live Equiv: $285.90 -$3.32*

   Hogs: Higher            Futures: Higher      Lean Equiv: $101.87 +$0.06**

   *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 had been hope that feedlots would again gain the upper hand and hold
for higher cash. That was true for Northern dressed cattle as cash was $1.00
higher; however, Southern live cattle traded $1.00 lower. We will know the full
impact of cash trade today, as the final number and prices will be released,
with more cattle likely trading later in the day on Friday. But it usually does
not change as early trade, even if it is light, usually sets the stage for the
rest of the trade. Feeder cattle backed away from potentially reaching contract
highs. Boxed beef prices took a large hit, with choice down $5.29 and select
down $3.16. The May Livestock Slaughter report showed cattle slaughter at 2.184
million head. This is the lowest May slaughter since 1960. The Commitment of
Traders report showed fund traders adding 2,778 long futures positions,
increasing the net-long live cattle position to 125,583. There were 2,339
positions added to feeder cattle, bringing the net-long position to 15,695.