DTN Early Word Livestock Comments      04/21 06:20
   Traders Will Begin Week With Caution

   Traders had an extra day to assess the Cattle on Feed report with Friday's
holiday. The report could be considered somewhat neutral and may not have much
influence on the market Monday. Hogs held onto higher prices on Thursday, but
may extend gains Monday due to the large cutout increase.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Mixed       Live Equiv: $242.32 -$0.86*

   Hogs: Higher          Futures: Higher      Lean Equiv: $102.77 +$4.18**

   *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:

   The Cattle on Feed report did not show anything significantly out of
expectations on Thursday. Placements were higher than analyst expectations at
105%, but cattle marketed were also higher than expectations at 101%. This
leaves it mostly neutral. Ongoing demand will be the determining factor for
cattle prices moving forward. The strong increase in cash last week, with
prices $4.00 to $7.00 higher, certainly supports the market and will have
feedlots holding for more this week. International demand remains good with the
tariffs old news and not impacting the market. Boxed beef prices Friday were
lower with choice down $1.38 and select down  $0.84. The Commitments of Traders
report showed fund traders liquidating 14,353 live cattle futures, reducing
their net-long positions to 103,264 contracts. They sold 2,328 feeder cattle
futures, reducing their netlong position to 26,951 contracts.