DTN Early Word Livestock Comments      03/11 06:07
   Livestock Trading Activity Will Reflect Uncertainty

   Cattle futures were higher on Tuesday as traders digested the bearishness of
the lower cash trade last week and the potential for the JBS strike to take
place next week. Hog futures rebounded and took back the losses of Monday after
recovering from the spillover pressure.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower           Futures: Higher      Live Equiv: $288.99 +$2.34*

   Hogs: Lower             Futures: Higher     Lean Equiv: $105.13 -$2.22**

   *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:

   Both live and feeder cattle futures gaped open at the start of trading on
Tuesday. The price gaps that remained after the bearish open on Monday were
closed on the upside, but that left gaps below the market. Those gaps may
remain open today as cattle may see further strength due to the strength in
boxed beef and the rebound in crude oil. Boxed beef prices surged on Tuesday,
with choice up $3.38 and select up $3.15. Futures may see further strength as
they hold a significant discount to cash. Lower cash trade is expected this
week as packers have purchased a good amount of cattle for deferred delivery.
Buyers also will not be buying cattle from the JBS plant in Greeley as the
strike is expected to take place on Monday.