DTN Early Word Livestock Comments      04/08 06:13
   Livestock Traders Uncertain Over Cash Strength

   The cattle market ran out of steam on Tuesday, with profit-taking likely the
culprit in an overbought market. After all, it has had an impressive run
higher. Hog futures were mixed, with traders weighing potential market strength
against weak fundamentals.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Lower      Live Equiv: $284.41 -$3.05*

   Hogs: Higher             Futures: Mixed     Lean Equiv: $103.90 +$1.22**

   *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:

   It is uncertain whether the development of the two-week ceasefire agreement
with Iran and the reopening of the Strait of Hormuz will affect the cattle
market. If there is an impact, it would be due to the potential for fuel prices
to decline, taking some of the financial pressure off consumers. However, that
certainly does not mean that there would be a surge in beef demand. The market
is a whole lot bigger than that, and high beef prices will continue. Packers
continue to maintain slow slaughter speeds, but it is not helping their
margins. Boxed beef prices plummeted on Tuesday, with choice down $5.30 and
select down $2.04. Cash trade is not expected to surface today, which might
leave the market choppy as traders may wait for cash to establish market
direction.