DTN Early Word Livestock Comments      04/30 06:20
   Feedlots Will Hold For Higher Cash

   There seems to be no stopping cattle futures from making new contract highs.
Boxed beef prices posted large gains again Tuesday as slower slaughter has only
increased prices. Hogs fell back in contracts through October as the market
lacks solid fundamental support.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Higher      Live Equiv: $253.49 +$2.49*

   Hogs: Higher           Futures: Mixed      Lean Equiv: $102.14 -$1.03**

   *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 continue to reach for the stars with traders trying to pick a
top continually being run over. Record-high prices dominate the market. Many
believe prices are too high and expect a decline at any time; but that idea has
been prevalent for some time, yet prices continue to rise. Packers are trying
their best to limit slaughter, hoping it will back up cattle in the country and
cause feedlots to offer cattle more aggressively. All it seems to have done is
tighten retail supplies, causing boxed beef prices to rise. Choice boxed beef
price jumped $5.49, moving it to $348.26. Choice boxed beef has increased by
$11.71 over the past two days. Select boxed beef declined $1.30. We can be sure
feedlots will not be willing to sell cattle this week for anything less than
steady cash. Wednesday is the last trading day for April live cattle. Feeder
cattle prices continue to rise as demand remains strong.