DTN Early Word Livestock Comments      05/19 06:19
   Livestock Futures May Bounce

   Cattle futures opened higher and traded higher for a period of time, but
even the positive news of China renewing registrations was not enough to
maintain support. Hog futures were very strong to begin trading, but selling
pressure increased, moving contracts into negative territory.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Higher      Live Equiv: $290.98 +$1.64*

   Hogs: Higher            Futures: Higher      Lean Equiv: $104.81 +$0.80*

   *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:

   Cattle opened higher on the news that beef plant export licenses will be
renewed to China, with some other plants being added, plus their commitment to
purchase $17 billion of agricultural products for each of the next three years.
However, that failed to maintain support for the market. It makes one wonder if
the market is not establishing a top. Bullish news failed to push the market
higher. Boxed beef prices showed no indication of weakness, with choice up
$2.89 and select up $0.98. Increased retail demand for the Memorial Day weekend
has been met, which may impact boxed beef demand and prices for the rest of the
week. Then it will be up to product movement to determine ongoing price
support. Packers may not be as aggressive this week, as next week is a
holiday-shortened week with reduced slaughter.