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DTN Early Word Livestock Comments      04/02 06:37
   Liquidation Is Possible Ahead of Extended Weekend

   Livestock futures were higher across the board. The June and August live
cattle futures pushed to new contract highs. The potential easing of fuel
prices seemed to impact the market positively. Hog futures were moderately
higher with limited reason to move significantly one way or the other.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher           Futures: Lower      Live Equiv: $291.08 +0.10*

   Hogs: Higher             Futures: Higher     Lean Equiv: $101.66 -$0.67**

   *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 June and August live cattle contracts moved to new contract highs
Wednesday, with feeder cattle moving into, but not closing, their chart gaps.
Cattle futures increased for five consecutive days, as it seems evident the
cattle herd will not be rebuilt anytime soon. The easing of fuel futures prices
may have also had an impact. However, that has quickly reversed overnight due
to the implications of President Trump's speech last night. Crude oil futures
are sharply higher and may impact trade Thursday. Cash cattle have not yet
traded for the week, but should be no worse than steady. With the significant
increase in futures this week, packers will likely need to be aggressive to pry
cattle from feedlots, as showlists are rather light. Boxed beef prices were
lower on Wednesday, with choice down $1.07 and select down $0.34. However, that
should not have any negative impact on the market. The impact on futures could
be from some liquidation ahead of the three-day weekend, as traders may want to
reduce some of their long positions.