DTN Early Word Livestock Comments      03/05 05:59
   Hog Futures May Continue to Make New Highs

   Cattle futures exploded on Wednesday with live cattle contracts gaping
higher on the open and never looking back. Futures recovered most of last
week's losses in live cattle, with feeder cattle making a valiant effort to do
the same. Traders turned their focus back to fundamentals. Hog futures pushed
higher, resuming the uptrend with new highs in the July and later contracts.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed      Live Equiv: $284.65 +$0.64*

   Hogs: Higher            Futures: Higher     Lean Equiv: $104.40 +$0.12**

   *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:

   Try as one might throughout the day, there was nothing to find that was
responsible for the substantial increase in cattle futures. It seemed as if
traders had digested the bearishness of last week and decided to focus on the
fundamentals. Uncertainty still exists, but traders gained the confidence to
push prices higher. The strength in boxed beef prices continued on Wednesday,
with choice up $0.52 and select up $1.77. Increasing boxed beef prices will
require packers to increase the slaughter pace to meet the demand, and they do
not have many cattle on hand. Feedlots may hold out for higher cash now that
futures contracts have nearly regained the losses of last week. Cash cattle
have not yet traded, but the sentiment of the market has turned bullish.