DTN Early Word Livestock Comments      05/01 06:20
   Weekly Export Sales May Influence Trading

   Most livestock contracts retraced on Wednesday. Cattle futures took a
breather from their overbought status and the expiration of the April live
cattle contract. Hog futures tried to regain some recent losses, but buying
interest dried up, and contracts fell.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Lower      Live Equiv: $250.54 -$1.91*

   Hogs: Higher           Futures: Mixed      Lean Equiv: $102.16 +$0.02**

   *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:

   Live cattle posted triple-digit losses through the December contract, as the
market may have been influenced by the closing of the April contract and its
overbought status. The front-month June contract declined $1.80, but not until
it initially made a new contract high. It is difficult to say whether there may
be larger price corrections in store or if this was just a round of
profit-taking due to traders being cautious over the extremely high prices.
Boxed beef prices were lower on Wednesday with choice down $2.95 and select
down $1.80. The weakness of the boxed beef will be of little consequence unless
it continues, which could indicate demand weakness. The weekly export sales
report will be released Thursday and will be an important indicator of the
impact of tariffs. Cash cattle are expected to see some light trade with higher
prices anticipated.