DTN Early Word Livestock Comments      06/16 06:24
   Cattle Remain Supported

   Cattle futures found support on the open. Plant closings and the New World
screwworm have been taken in stride and deemed not bearish for the market. Hog
futures fell back with the October through February contracts making new lows.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed      Live Equiv: $289.49 +$2.32*

   Hogs: Higher           Futures: Higher     Lean Equiv: $103.71 -$0.27**

   *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 rebounded as traders do not believe the New World screwworm
and the small plant closings will have any negative impact on the market. Beef
demand remains strong, and there is little indication of a surge in available
cattle or herd rebuilding. The U.S. and Iran have a preliminary peace agreement
to end the war and lift the blockade of the Strait of Hormuz. Crude oil prices
have fallen significantly over the past three days, which will lower fuel
prices. Consumers will have more disposable income, which may keep beef demand
strong. Boxed beef prices were higher on Monday, with choice up $3.12 and
select up $3.69. The market is holding support, which may provide traders with
the confidence to buy into the market. Feeder cattle surged higher as demand at
auctions remain strong, with a premium being paid for cattle.