DTN Early Word Livestock Comments      05/16 06:10
   Higher Corn to Pressure Cattle

   Live cattle just could not find solid support, even though corn futures
closed lower on the day. Feeder cattle capitalized on that with contracts
rebounding from the lows. Hog futures had strong buyer interest as Friday
progressed with June, July and August contracts posting triple-digit gains.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower       Futures: Lower    Live Equiv:    $192.88 +$0.49*

   Hogs: Higher        Futures: Mixed    Lean Equiv:    $108.59 +$2.54**

   *Based on formula estimating live cattle equivalent of gross packer revenue.
(The Live Cattle Equiv. 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:

   June live cattle futures was the only contract able to post a gain on Friday
as it already has a discount to cash. However, later contracts made new recent
lows, moving futures back to the levels last seen in November 2021 for the
August contract. The concern over demand has been rearing its ugly head as
consumers look at their grocery bill along with filling up their car with gas.
Although boxed beef prices were mixed Friday with choice up $1.75 and select
down $0.46, the outlook for summer demand seems a bit more bearish. Packers
were able to purchase cattle at steady to $0.50 lower cash last week, adding to
the cattle they have already purchased ahead. The jump of corn futures
overnight, due to spillover from wheat as India halts their exports of wheat to
fight soaring inflation in the country, will have a negative impact on the
cattle complex.