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DTN Early Word Livestock Comments      06/21 06:16
   Traders Position Ahead of Cattle on Feed Report

   Traders seem to be focused on the Cattle on Feed report to be released after
the close Friday. Cash has not been established, but the few that traded may
indicate packers need to pay more. Hog futures fell apart as cash remains weak
and cutouts are variable.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Mixed     Live Equiv: $235.57  +$1.31*

   Hogs: Higher           Futures: Mixed     Lean Equiv: $103.70 +$0.18**

   *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:

   Cash cattle seldom trade before Friday when there is a Cattle on Feed report
and this week has been no exception. A few were traded Wednesday, but nothing
to indicate where the majority will trade. Without cash to provide direction,
the focus was on positioning ahead of the Cattle on Feed report to be released
Friday afternoon. The average estimate for on feed on June 1 is 98.9% of a year
ago. The range of estimates is 98.3% to 99.4%. Cattle placements in May are
estimated at 98.3% with a range of 95% to 102.4%. Marketings in May are
estimated at 100.3% with estimates ranging from 99.3% to 101.2%. This shows the
uncertainty of traders for the placement number due to the wide range. Boxed
beef was higher on Thursday with choice up $2.17 and select up $1.14.
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