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DTN Early Word Livestock Comments      05/25 06:29
   Lower Corn May Support Cattle

   Live cattle struggled Tuesday with futures only able to close mixed. Feeder
cattle took advantage of lower corn futures, posting triple-digit gains with
more possible Wednesday. Hog futures took a breather Tuesday, bouncing
significantly into the close.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower       Futures: Mixed     Live Equiv:    $195.60 -$0.07*

   Hogs: Higher        Futures: Higher    Lean Equiv:    $115.86 +$1.19**

   *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 just could not muster sufficient trader interest to push futures
to strong gains. Traders are taking a wait-and-see attitude over just how cash
will shake out this week. There was some light trade in the South $1.00 lower
than last week, but nothing that traders could hang their hats on. Packers are
not expected to be aggressive this week, so it will be up to the feedlots as to
at what price they will be willing to part with their cattle. The weakness of
corn Tuesday and, again, weakness overnight might give feedlots more confidence
to hold for steady cash. Boxed beef was mixed with choice down $0.63 and select
up $1.12. Feeder cattle may see further gains as overnight corn futures show
further weakness. The potential corn export agreement between China and Brazil
may reduce export demand and price, making feeding cattle a bit less expensive.
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