DTN Early Word Livestock Comments      05/13 06:07
   Cattle Futures May See Further Pressure

   Cattle futures opened higher and then moved higher before liquidation was
triggered, and futures fell back. Positive news was overshadowed by
profit-taking. Hog futures fell, taking back the gains on Monday and then some,
with June moving to a new low.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Lower      Live Equiv: $289.96 -$0.32*

   Hogs: Higher             Futures: Higher    Lean Equiv: $101.94 -$1.46*

   *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 futures opened higher on Tuesday, likely off the news that President
Trump was to delay the signing of the executive order to eliminate tariffs on
beef for 200 days due to the 16% surge in beef imports over the past year. Beef
imports are projected to reach as much as 6 billion pounds this year. This
would be a record volume. However, the uncertainty created in just two days was
too much for fund traders to feel comfortable holding all of their long
positions. So, even though cash is expected to remain steady or increase this
week, uncertainty has gained the upper hand. Boxed beef prices were lower, with
choice down $0.49 and select down $0.22. There may be follow-through selling
today, adding to the recent volatility.