DTN Early Word Livestock Comments      03/26 06:28
   Traders to Position Ahead of the Hogs and Pigs Report

   Cattle futures tried to add to Tuesday's prices but ran out of steam with
the substantial drop in the choice boxed beef price. Hogs were mixed as
contracts flirted with the support level, with traders not yet feeling
comfortable about buying the break.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Lower     Live Equiv: $289.52 -$3.83*

   Hogs: Lower             Futures: Mixed     Lean Equiv: $102.36 -$0.57**

   *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:

   Cattle futures closed lower with pressure developing. The choice boxed beef
price fell nearly $8.00 in the morning report. The afternoon boxed report
showed choice down $8.22 with select up $0.99. Concern was developing over the
continued strength of demand due to escalating beef prices and improving packer
margins. Either consumers were going to reach a price resistance or slaughter
would increase to meet the continued demand. That question may have been
answered on Wednesday. However, one day's trade does not mean much in the big
picture. Traders have wavered in their anticipation of a steady to higher cash
cattle trade this week and see the potential for lower cash to develop. Today
is the last day to trade March feeder cattle.