DTN Early Word Livestock Comments      06/20 06:19
   Cattle on Feed Report Friday Afternoon

   Cattle futures seem top-heavy but closed higher Wednesday. Traders remained
optimistic, but any negativity may send futures lower. Light cash trading took
place on Thursday. Hogs closed mostly higher on Wednesday but may struggle into
the end of the week.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Higher      Live Equiv: $285.10 +2.82*

   Hogs: Lower             Futures: Higher     Lean Equiv: $124.84 +0.70**

   *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 had the day off Thursday, providing time to reflect on the market
and assess the direction it will take from here. Technically, the market looks
to be top-heavy and may have difficulty moving back to the highs. Light cash
cattle trade took place Thursday, with live steers and heifers in Iowa at $231
and dressed at $376. Nebraska showed dressed sales at $376. This may have set
the stage for the cash trade Friday. Boxed beef prices were higher, with choice
up $4.92 and select up $1.85. The choice cutout value is at an incredible
$393.79. Traders will grapple with the technical and fundamental aspects of the
market Friday, as well as the Cattle on Feed report to be released after the
close. The average estimate for on feed as of June 1 is 98.8% of a year ago.
Placements in May are estimated at 94.2% and marketings are 90.1%.