DTN Early Word Livestock Comments      05/26 06:17
   Directionless Trading Anticipated

   Cattle just could not get anything going Wednesday even though there was
further weakness in corn. It was more apparent that cash was going to remain
lower for the week, keeping the market under wraps. Hogs tried to push higher
early in the day but fell back as cash and cutouts did not show much promise.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower       Futures: Mixed     Live Equiv:    $194.90 -$0.70*

   Hogs: Steady        Futures: Mixed     Lean Equiv:    $114.69 -$1.17**

   *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:

   Live cattle opened higher Wednesday but could not hold onto those gains.
Fundamentals are just not strong enough to trigger any widespread buying
interest in traders. Weaker cash this week continues to leave June at a
discount to cash with one month remaining for the contract. A lot can happen
over the next month with the trade holding a discount, believing further
weakness may develop. Packers have been able to purchase needed supply without
difficulty, allowing for them to purchase a couple of weeks ahead of time.
Boxed beef was lower with choice down $0.72 and select down $1.29. Feeder
cattle closed mixed Wednesday, unable to gain from weaker corn prices. Further
weakness in corn developed overnight but that may not have a large impact on
activity today. Thursday is the last trading day for the May contract with
August taking over as front-month. Weekly export sales are not expected to have
a significant impact on the market.