DTN Early Word Livestock Comments      06/30 06:06
   Hog Report May Support Futures

   Feedlots hoped for higher cash this week but were unable to get it. Packers
dug in and were not willing to pay more for cattle resulting in steady to lower
trade. Hogs closed mixed in anticipation of the Hogs & Pigs report. Cash and
cutouts were higher.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower       Futures: Mixed       Live Equiv:    $195.75 -$1.65*

   Hogs: Steady         Futures: Higher      Lean Equiv:    $116.42 -$3.09**

   *Based on formula estimating live cattle equivalent of gross packer revenue.
(The Live Cattle Equiv. 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:

   Feedlots were resolved to hold out for steady to higher cash early in the
week. Steady cash was obtained in some areas of the South along with $1.00
lower as well. The North saw generally $1.00 lower trade. Packers had
sufficient cattle purchased ahead and were unwilling to bid higher to fill in
the rest of their needs ahead of the July 4th weekend. After two very strong
weeks of cash gains, feedlots decided steady to slightly lower cash was not all
that bad for now. Boxed beef took a hit with choice down $2.26 adding to the
decline Tuesday and effectively eliminating the strong gain seen on Monday.
Select cuts declined $2.50. Export sales will need to be good to keep prices
from drifting lower. Today is the last day to trade June live cattle with
August taking over as front month on Friday.