DTN Early Word Livestock Comments      05/02 06:25
   Markets May See Further Liquidation Thursday

   The news of the avian flu in cattle is running rampant with numerous
articles detailing concerns about the impacts this may have on people if it
becomes more widespread. Cattle futures sunk Wednesday under the weight of
these articles, taking hog futures down with them.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower          Futures: Lower   Live Equiv:   $217.30 -$0.89*

   Hogs: Lower           Futures: Mixed   Lean Equiv:   $103.90 -$0.77**

   *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:

   Market fundamentals did not mean anything Wednesday as selling ran rampant
due to numerous stories about concerns of the avian flu virus in milk and
possibly meat. No virus has been discovered in meat at this time, but some of
the articles fueled trader anxiety. Fund traders had been holding significant
long positions in the cattle markets and they may liquidate those positions.
One concern is the export market may fall off if other countries decide to take
precautions for even a limited time. Packers are not expected to be aggressive
this week with lower cash trade anticipated. Boxed beef prices were lower with
choice down $0.83 and select down $1.88. The one positive action Wednesday was
chart gaps remaining in later futures contracts were closed.