DTN Early Word Livestock Comments      05/31 06:15
   Hog Futures May See Further Strength to Close Out the Month

   Cattle futures held well after China banned beef from a JBS plant in
Colorado. Even though futures showed weakness, prices rebounded from the lows
for a second day. Hog futures found buying interest after some contracts made
new lows indicating the selling pressure may have subsided.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady          Futures: Mixed     Live Equiv: $230.60 +$0.22*

   Hogs: Higher            Futures: Higher    Lean Equiv: $107.80 +$0.21**

   *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:

   It was the second consecutive day that selling put significant pressure on
cattle futures only to have the pressure subside as the day progressed. There
is concern over China banning beef from a JBS plant in Colorado leaving traders
uncertain over the length of the ban. Further testing is being conducted. There
was some light cash cattle trade $1.00 lower in the South on Thursday. This may
have set the stage for further trade today. No activity was reported in the
North. Boxed beef prices closed higher with choice up $0.42 and select of
$0.04. This will not have any significant influence on cash trade. Feeder
cattle futures closed lower for the second day eliminating the past week's
gains.