DTN Early Word Livestock Comments      06/02 06:19
   Hog Futures Face Further Pressure

   Cattle futures regained most of the losses on Friday, leaving the market in
a choppy, sideways pattern. The New World screwworm (NWS) has become a greater
threat. Hogs broke through support, increasing the technical weakness of the
market.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Lower       Live Equiv: $289.77 +$0.65*

   Hogs: Higher           Futures: Higher      Lean Equiv: $106.39 +$0.30**

   *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 began the week with optimism as the overall fundamental picture of
the market is bullish if things remain as they are. The drought in much of
cattle country is a concern and may limit or eliminate any rebuilding of the
beef herd. Only 29% of the nation's pastures are rated good to excellent, which
is the worst rating over the past 10 years. However, this could pressure prices
in the near term if liquidation increases. More cattle would come to the
market, leaving packers less aggressive in the cash market. There have been
various reports of the spread of the New World screwworm (NWS). There was a
report of a case within 25 miles of the Texas border. Texas House
Representative Don McLaughlin reported in a news release on Monday that he had
received reports that NWS is just one mile from the border. Boxed beef prices
were mixed on Monday, with choice up $1.36 and select down $0.09.