DTN Early Word Livestock Comments      06/13 06:22
   Higher Cattle Prices May Be Factored In

   The cattle market continued to consolidate Thursday, giving the impression
traders may be getting a little uncomfortable at these price levels. However,
steady to higher cash should provide support. Hogs closed slightly higher,
tempered by the low weekly export sales.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher         Futures: Higher       Live Equiv: $274.17 +1.45*

   Hogs: Lower           Futures: Higher      Lean Equiv: $120.32 +1.42**

   *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:

   Cash cattle traded on Thursday, but traders were a little disappointed that
Northern dressed cattle traded steady compared to last week. Southern live
cattle showed more activity at $5.00 higher, but the focus was on the dressed
trade and the overbought market. It isn't very likely liquidation will be
triggered as boxed beef prices remain supportive and weekly export sales jumped
71% from the previous week, totaling 15,300 metric tons. Boxed beef prices were
higher, with choice up $1.96 and select up $2.32. Boxed beef prices have been
higher the entire week, providing support to the market. Though it looks like
the market might be consolidating and could retrace, the downside might be
limited. USDA increased its estimates for steer prices on the WASDE report,
also providing optimism.