DTN Early Word Opening Livestock       05/20 06:34
   Cattle Futures Likely to Open Lower Thanks to On Feed News

   Look for live and feeder contracts to start out moderately lower this
morning, pressured by Friday's confirmation of larger than expected April
placement activity. On the other hand, lean hog futures seem ready to open on a
mixed basis thanks to a combination of residual selling interest and positive
fundamentals.

By John Harrington
DTN Livestock Analyst



Cattle: Steady-$1 LR   Futures: 25-50 LR  Live Equiv $141.62 - .07*
Hogs:  Cash Steady-.50 LR Futures: mixed  Lean Equiv $100.49 + .08**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue

GENERAL COMMENTS:

   In the past, the immediate business round before the long Memorial Day has
been know to be rocky for the cash cattle and boxed beef market as buyers slip
into slow motion to await the verdict of holiday demand and clearance.
Positively, packer margins are outstanding and the late-spring supply of ready
cattle remains relatively tight. Preliminary asking prices are likely to be
around $127-plus in the South and $203-plus in the North. Live and feeder
futures are set to open moderately lower, pressured by larger than expected
April placement and technical selling.