DTN Early Word Livestock Comments      04/16 06:12
   Traders to Position Ahead of the Cattle on Feed Report

   Cattle futures were unable to extend the gains of Tuesday, with deferred
contracts posting greater losses. Traders may have been positioning ahead of
the Cattle on Feed report on Friday. Hog futures were again unable to post
gains as traders remain unwilling to become aggressive buyers due to
disappointing fundamentals.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Mixed     Live Equiv:   $282.61 -$0.86*

   Hogs: Higher            Futures: Mixed     Lean Equiv:   $101.38 -$3.46**

   *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 were unable to extend their gains from Tuesday due to no cash
cattle trade and lower boxed beef prices. Traders may also have started looking
ahead to the Cattle on Feed report, which will be released on Friday, and begun
positioning themselves before its release. The trade estimates are for on feed
as of April 1 at 99.7%. Placements in March are estimated at 93.3%. Marketings
are estimated at 93.6%. Wherever the numbers fall may result in a reaction next
week, but even if it is bearish, it may not have any lasting impact on the
market. This has been the pattern with numerous previous reports. Cash cattle
have not yet traded this week and are unlikely to today. Boxed beef declined on
Wednesday, with choice down $1.22 and select down $1.22.