DTN Early Word Livestock Comments      02/03 06:07
   Follow-Through Buying Is Expected

   Cattle futures were off to the races on Monday with contracts pushing
through resistance. Higher cash last week and the prospect for higher cash this
week is keeping buying active. Hog futures pushed to new contract highs in the
May and later contracts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Higher     Live Equiv: $270.84 +$1.96*

   Hogs: Higher             Futures: Mixed     Lean Equiv: $101.48 +$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:

   Cattle futures pushed higher as traders became aggressive on the heels of a
stronger cash cattle trade last week. Feedlots are in the driver's seat and
will continue to hold for higher cash. Packers have not been able to surround
themselves with many cattle. The Cattle Inventory report showed the lowest
amount of cattle in feedlots since 2018. The Cattle on Feed report a few weeks
ago showed the continued tightening of feeder cattle inventories. This does not
indicate cattle supplies will be increasing anytime soon. Packers continue to
face the fact that reduced slaughter is not going to boost supplies. It is
uncertain what is going to break this cycle and increase the incentive for herd
rebuilding. Boxed beef prices were higher on Monday, with choice up $2.65 and
select up $2.97.