DTN Early Word Livestock Comments      05/12 06:15
   Mexican Cattle Imports Suspended

   Cash cattle traded higher, but futures did not continue higher on Friday.
Traders did not want to get too carried away at these high prices. Hog futures
closed mixed despite positive cash and cutout prices.


Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady         Futures: Higher      Live Equiv: $252.08 -$1.38*

   Hogs: Lower            Futures: Higher      Lean Equiv: $103.40 +$3.35**

   *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:

   June live cattle gained $3.58 for the week, with May feeder cattle up $3.03.
Although live cattle futures closed lower in all but the June contract, new
highs were made before selling pressure got the upper hand. That may change
Monday as Secretary of Agriculture Brooke Rollins announced on Sunday the
suspension of live cattle, horse, and bison imports from Mexico, effective
immediately. The threat of the New World Screwworm has been spreading
northward, moving closer to the U.S. border. Cattle futures are expected to
increase on the news as fewer cattle will be available to add to the beef herd.
Boxed beef prices were lower Friday with choice down $1.92 and select down
$2.03. However, this may not have any impact on the market. The Commitments of
Traders Report showed fund traders adding 3,118 live cattle contracts,
increasing their net-long position to 125,611. They added 1,457 feeder cattle
contracts, increasing their net-long position to 28,320.