DTN Early Word Livestock Comments      05/20 06:21
   Live Cattle Struggle With Technical Resistance

   Feeder cattle provided support to the cattle complex, dragging live cattle
futures higher. May feeder cattle go off the board on Thursday. Hog futures
again moved in the other direction with no interest in spillover trading. June
futures fell below support, potentially influencing further weakness.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Higher      Live Equiv: $293.50 +$2.52*

   Hogs: Lower             Futures: Mixed       Lean Equiv: $103.33 -$1.48*

   *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:

   Live cattle futures were somewhat reluctant to increase, but the strength of
feeder cattle pulled them higher. June live cattle futures hold a discount to
cash, which may not be maintained for very long. Cash is expected to be steady
this week, which may result in higher trade to narrow the gap. However, there
may be some apprehension due to the Cattle on Feed report being released on
Friday. Boxed beef prices showed strong gains, with choice up $3.61 and select
up $3.35. Retail demand remains strong as consumers prefer beef and are willing
to pay for it. The May feeder cattle contract goes off the board on Thursday,
with August then taking over as the lead month.