DTN Early Word Livestock Comments      05/16 06:18
   Cattle Liquidation May Temper Into The Weekend

   The feeder cattle and some live cattle contracts gapped lower on the open
Thursday and never looked back. The liquidation continued with the August
through November feeder cattle contracts closing more than $6.00 lower. Hog
futures uncovered some support with deferred contracts moving to new highs.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Mixed       Live Equiv: $255.68 +$0.97*

   Hogs: Lower           Futures: Higher      Lean Equiv: $105.29 +$2.58**

   *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:

   Traders were intent on liquidating contracts at the beginning of the day
Thursday. Feeder cattle and some live cattle contracts gapped lower on the open
and continued lower. It is difficult to assess whether the liquidation will
supersede the light cash trade cattle trade of $1.00 higher on Thursday.
Feedlots are not willing to give up on holding cattle for higher cash, but the
report is that some cattle being purchased are already for deferred delivery.
If this does not pressure cash this week, it almost certainly will next week.
That realization may increase sales even if cash is lower, as holding them may
result in lower cash trade next week. Boxed beef prices were higher, with
choice up $0.54 and select up $3.33. Feeder cattle showed "Katie-bar-the-door"
liquidation with contracts falling $10.00 to $11.00 over the past two days.