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DTN Early Word Livestock Comments      04/14 06:32
   Market Uncertainty Remains Prevalent

   Cattle appear to be in trouble technically, but fundamentally, there is good
reason to believe the recent weakness of futures will be temporary. Strong
demand should provide support. Hogs have had a much-needed price retracement to
relieve the extreme overbought market. It is unclear if current cash is
sufficient to cause traders to aggressively buy back into the market Wednesday.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher   Futures: Lower    Live Equiv:   $200.75 -0.57*

   Hogs:  Steady  Futures: Higher   Lean Equiv:  $119.03 +2.39**

   * 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:

   Cattle futures do not look healthy after the past few days and especially
since June and August contracts closed below support of the 20-day moving
average. Traders have not found a reason to step back into the market. Boxed
beef was mixed, providing some cause for concern. It is unclear what bids and
offers will be posted for cash, but these should surface Wednesday. Feedlots
are a bit unnerved by the substantial decline of futures after the strong
increase of cash last week. Feedlots will ask higher prices, but will they
receive them? Packers are hoping to see some interest in selling at last week's
prices or only $1.00 or $2.00 higher rather than a repeat of last week. Packers
will need to purchase cattle as demand remains strong even though boxed beef
settled mixed Tuesday. The strong increase of corn prices Tuesday may keep
feedlots interested in moving cattle rather than play the waiting game.
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