DTN Early Word Livestock Comments      04/17 06:09
   Traders Continue to Position Ahead of Cattle on Feed Report

   Cattle futures showed weakness on Thursday due to a combination of being
overbought and traders positioning ahead of the Cattle on Feed report. Hogs
closed lower as it has been the path of least resistance.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Lower     Live Equiv:   $282.36 -$0.25*

   Hogs: Lower            Futures: Higher    Lean Equiv:   $102.92 +$1.54**

   *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 combination of an overbought market and traders positioning ahead of the
Cattle on Feed report likely sent the market lower. Some influence may have
been from limited dressed cattle sales in the North at $1.00 lower. It was not
sufficient to anticipate lower cash sales for the week, but it did create some
caution for traders. There was some positioning ahead of the Cattle on Feed
report, as some exposure was being reduced and profits were being taken. It is
better to be safe than sorry. The Cattle on Feed report is estimated to show
the on-feed number at 99.7% of a year ago. The range of estimates is 99.1% to
100.1%. Placements are estimated at 93.3% with a range of 89.8% to 95.4%.
Marketings are estimated at 93.6% with a range of 92.3% to 95.3%. Boxed beef
prices posted minor losses, with choice down $0.41 and select down $0.10.