DTN Early Word Livestock Comments      03/17 06:13
   The Bounce in Cattle Futures May Be Short-Lived

   Cattle futures seemed to have the strike at the JBS plant factored in and
decided to buy the fact. Futures are lower than cash and boxed beef remains
strong. Hog futures showed limited volatility, but found buying interest after
the liquidation ran its course.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Mixed      Live Equiv: $294.60 +$2.97*

   Hogs: Higher            Futures: Higher     Lean Equiv: $106.40 +$0.25**

   *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:

   Traders were not concerned about the strike at the JBS plant as it seems to
have been factored into the market. Cattle futures opened steady to higher on
possible contrarian trading activity. Futures are significantly below cash,
which may have had an influence, even though cash is expected to be lower again
this week. Boxed beef prices continue to escalate as the reduced slaughter pace
has supported prices. Choice boxed beef increased $4.74, with select up $2.97.
This has improved the packer margins significantly. With improved margins, they
may begin to increase the slaughter pace. However, with the strike at the JBS
plant, it may be difficult to increase overall slaughter. Boxed beef prices may
reach a threshold with consumers as they grapple with higher fuel prices.