DTN Early Word Livestock Comments      04/22 06:15
   Hog Futures May Show Further Strength Wednesday

   Cattle futures retreated further Tuesday, closing at the lowest level since
April 1. Higher consumer prices may be impacting demand. Hogs had a strong day
with the nearby contracts gapping higher on the open and not looking back.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Lower      Live Equiv: $286.42 +$2.09*

   Hogs: Lower              Futures: Higher     Lean Equiv: $105.58 -$0.86**

   *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:

   Selling pressure Tuesday may have been due to the discovery of the New World
screwworm on a calf just 60 miles from the U.S. border. It could have been from
the impact of high fuel prices on consumer buying power. It could have been the
liquidation of contracts due to live cattle being near record-long positions on
the recent Commitments of Traders report. It could be due to select boxed beef
prices moving above choice as consumers are purchasing more, less-expensive
cuts of beef. It could have been influenced by the Justice Department's
antitrust division examining whether large suppliers manipulated the market,
resulting in higher beef prices. Any one of these, or a combination of them,
could have influenced the market. Boxed beef prices increased on Tuesday, with
choice up $2.62 at $386.18 and select up $3.59 at $387.20. Packers continue to
reduce slaughter in an attempt to improve margins.