DTN Early Word Livestock Comments      06/11 06:09
   Another Ban on Cattle Movement

   Cattle futures were able to extend their gains due to the expectation for no
worse than steady cash trade this week. Hog futures tried to claw their way
higher, but buying interest ran out with deferred contracts making new lows.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed      Live Equiv: $288.56 +$0.06*

   Hogs: Lower             Futures: Higher     Lean Equiv: $102.57  Unch**

   *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:

   News about the New World screwworm has been a daily occurrence. Canada
banned the importation of Texas cattle and now Mexico has joined them. Mexico
is halting most livestock imports from the United States, including cattle,
pigs, and sheep. There is not much livestock that moves from the U.S. to
Mexico, but the ban has been implemented. So far, the market has digested the
news of the past week and decided it was not bearish. The bearish aspect would
be if beef demand were to decline. Cash cattle have not traded so far this
week, as feedlots have not jumped to sell cattle aggressively due to the news.
The expectation is for cash to trade steady to higher. Boxed beef prices were
mixed on Wednesday, with choice up $0.38 and select down $1.23.