DTN Early Word Livestock Comments      06/30 06:08
   Cash Cattle May Trade Early

   Cattle futures were under pressure from the start and remained that way
throughout the day. There is a possibility that follow-through selling could
continue. Hog futures reversed the direction of trade on Friday. Futures
rebounded from support but closed lower in deferred contracts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Higher      Live Equiv: $286.66 +$0.76*

   Hogs: Higher            Futures: Higher      Lean Equiv: $104.16 +$2.29**

   *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 followed through on Friday's weakness. The reaction might
have come from the weakness in boxed beef on Friday or that Southern live
cattle traded $1.00 lower last week. There is also the possibility that the
market is tired, and without continued new bullish news, a period of
liquidation might take place. However, fundamentals remain supportive, and a
retracement may be short-lived. Today is the last day for the June live cattle
contract, with August taking over as the lead month and carrying a substantial
discount to the expiring June contract. Boxed beef prices were higher, with
choice up $0.41 and select up $2.60.