DTN Early Word Livestock Comments      03/26 06:17
   Traders Look Ahead to Hogs and Pigs Report

   Cattle futures were under significant pressure during the day Tuesday as
follow-through selling took place. However, the selling subsided, resulting in
the trimming of earlier losses. Hogs found minor support, but the highs earlier
in the day were just a memory by the close.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher        Futures: Higher        Live Equiv: $243.16 +$4.09*

   Hogs: Lower          Futures: Mixed         Lean Equiv: $103.33 +0.18**

   *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:

   The action of cattle futures Tuesday suggests the selling pressure may have
subsided and the market correction may have been sufficient for the time being.
Traders seemed to be itching to buy the market in anticipation that packers
will need to step up again this week. Boxed beef had a phenomenal day with
choice up $8.09 at $335.19 and select up $0.47 at $314.05. Many people are
wondering just how high beef prices can go. It will be up to demand to
determine that level. The market's job is to find a price at which demand will
slow, and that has not yet happened for beef. Feeder cattle are in strong
demand as prices continue to escalate in the country. Cash trade has not taken
place this week, but initial feedlot offers are $2.00 higher. Those may be
raised if boxed beef prices continue higher this week.