DTN Early Word Livestock Comments      05/08 06:20
   Hogs Struggle to Find Solid Support

   Livestock futures were higher Tuesday with hog futures showing minor gains
while cattle showed mostly triple-digit gains. Some optimism showed over
improved demand with strong product prices on Monday. Traders felt a little
better about the cash potential.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Higher    Live Equiv: $220.59 +$0.41*

   Hogs: Lower            Futures: Mixed    Lean Equiv: $102.98 -$2.41**

   *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:

   The strength of boxed beef Monday supported the potential for increased
demand from the packers for cattle this week. Traders feel cash will be at
least steady with last week and supportive of the market. However, the movement
of boxed beef in one day does not mean a change in trend. Boxed beef prices on
Tuesday were mixed with choice down $0.29 and select up $2.59. Even though the
weakness of choice cuts was minor, it does keep demand in check. The support
may come from the increasing chain speed requiring packers to purchase more
cattle. The avian flu in dairy cattle seems to be old news as no threat to the
food supply has been found.