DTN Early Word Livestock Comments      03/27 06:24
   Caution May Dominate Early Trading

   Friday was a good end to the week for live cattle and hogs. Both closed in
positive territory with hogs posting the greatest gain. Feeder cattle struggled
due to higher corn futures.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Higher     Live Equiv:   $207.95 -$1.46*

   Hogs: Steady           Futures: Mixed      Lean Equiv:    $88.32 +$0.74**

   *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:

   Cash cattle closed out the week mixed as it traded earlier in the week.
Cattle in the South traded $1.00 lower while cattle in the North were $1.00 to
$2.00 higher. There was some give and take by both packers and feedlots.
Packers are trying to preserve margins due to boxed beef prices struggling
recently. On Friday, boxed beef was lower with choice down $2.90 and select
down $0.14. It will be interesting to see how many cattle were again purchased
for deferred delivery. Feeder cattle were under pressure due to strong corn
prices. March feeder cattle were higher due to it moving toward the last day of
trading on Thursday and the anticipation of where the contract would settle.
The CFTC has now finally caught up on the Commitment of Traders report with the
most recent being released. Funds sold 28,789 live cattle contracts last week,
reducing their net-long futures positions to 62,677. Funds were net sellers of
3,361 feeder cattle futures, reducing their net-long positions to 6,536
contracts.