DTN Early Word Livestock Comments      05/05 06:08
   Government Investigation May Impact Livestock Futures

   The livestock complex was lower across the board on Monday. Traders were
searching for something to provide support, but found none. The pressure is
unlikely to continue today.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady           Futures: Mixed      Live Equiv: $290.17 +$1.97*

   Hogs: Higher             Futures: Mixed     Lean Equiv: $103.68 -$0.23**

   *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 decline for a third consecutive day as traders expressed
caution in the market after making new contract highs in live cattle last week.
Significantly higher cash trade last week did not provide further support to
the market, as it had been factored in. Even though the expectation is for cash
to be steady this week, traders are liquidating some positions. The action
could indicate a top has been established in the market. However, that has been
said numerous times over the past two years, and yet new contract highs are
again made. Boxed beef prices were strong, with choice up $2.45 and select up
$3.55. USDA and the Department of Justice are investigating the beef industry
concentration, with the large packers under scrutiny. A major settlement
announcement is expected later this week. The U.S. Attorney General indicated
that he will be announcing a historic settlement that will directly affect the
prices of proteins like chicken, pork and turkey. It is uncertain what that
means, but it might have been one reason for the weakness.