DTN Early Word Livestock Comments      04/01 06:10
   Cattle Futures May Test Contract Highs Wednesday

   Cattle futures extended gains, pushing substantially higher Tuesday. The
June and August live cattle contracts closed the chart gaps and are knocking on
the door of the contract highs. Hogs succumbed to selling pressure as earlier
strength waned, falling back as underlying support remains uncertain.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Mixed     Live Equiv: $290.98 +1.10*

   Hogs: Steady             Futures: Mixed     Lean Equiv: $102.33 -$1.32**

   *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 were the recipients of strong buying interest Tuesday,
resulting in the June and August contracts closing the chart gaps that had
remained since Oct. 17. Tight cattle supplies may tighten further as there is
evidence of increased cattle sales from some areas facing a feed shortage.
After the large price decline in October and November, it was anticipated the
top may have been established for the market; but here we are with the June and
August closing the gaps and knocking on the door of new contract highs. The
strong stock market on Tuesday likely influenced the strength. Boxed beef
prices on Tuesday were higher, with choice up $1.39 and select up $1.92. More
discussion is surfacing regarding the possibility of reopening the border with
Mexico for cattle imports, according to the Secretary of Agriculture Brooke
Rollins. There is no set date for any port to reopen, but there is a
possibility of another phase in strategy, with the port in Douglas, Arizona,
being the farthest from the New World screwworm cases. Further assessment is
ongoing.