DTN Early Word Livestock Comments      05/03 06:17
   Further Strength Likely in Cattle Friday

   Cattle futures received positive news from numerous avenues Thursday,
pushing contracts higher. Maybe traders can put the avian flu concerns behind
them for now. Hog futures struggled throughout Thursday, resulting in a mixed
close.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Higher   Live Equiv:   $216.91 -$0.39*

   Hogs: Higher           Futures: Mixed   Lean Equiv:   $103.70 -$0.11**

   *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 had a strong open and higher trade throughout Thursday. Initial
support came from good beef exports totaling 22,500 metric tons (mt), which was
a marketing year high. Then there was the announcement that no avian flu matter
was found in ground beef that had been tested. On top of that, cash cattle
began trading $1.00 to $2.00 higher. What was there not to like about the
fundamental news? Traders supported the market aggressively, but maybe not as
aggressively as one would have thought based on not finding traces of avian flu
in ground beef. There remains the matter of consumer perception and whether
this will put the concern of the avian flu in beef behind us. It certainly is a
step in the right direction. The weakness of boxed beef remains a concern with
choice down $0.64 and select down $0.09.