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DTN Early Word Livestock Comments      06/17 06:16
   Aggressive Buying of Futures Expected to Continue Monday

   Traders aggressively bought futures after higher cash for the week was
confirmed by strong trading activity Friday. The June contract had to keep up
with cash as it moved closer to settlement. Hog futures reversed as
short-covering ahead of the weekend erupted after first making new contract
lows.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Higher     Live Equiv: $233.97  +$1.79*

   Hogs: Higher            Futures: Higher     Lean Equiv: $107.24 +$4.38**

   *Based on the forula 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 traders had been waiting for something to support the market and they
got it Friday as cash traded higher. Thursday showed light trade at higher
prices and was confirmed Friday with Southern cattle trading $1.00 higher and
Northern dressed trading $4.00 higher. This was the catalyst needed for traders
to buy into the market. The strength began on the open with futures gapping
higher and they never looked back. Along with higher cash, boxed beef prices
were also strong with choice up $1.58 and select up $4.56. Demand remains
strong with packers needing to purchase cattle and maintain a strong slaughter
pace. The Commitments of Traders report showed funds selling 3,571 live cattle
futures contracts with their net-long positions totaling 53,071 contracts.
Funds were net sellers of 358 feeder cattle futures contracts with their
net-long positions at 2,978 contracts.
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