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DTN Early Word Livestock Comments      05/01 06:12
   The New Farm Bill Contains Various Livestock Provisions

   The April futures contract is history, with June live cattle and May feeder
cattle now the lead months. Cash trade remained exceptionally strong on
Thursday, and any sales today will follow suit. Hog futures eliminated
Wednesday's gains, making one wonder why the market ran higher in the first
place.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher           Futures: Mixed      Live Equiv: $288.52 +$1.13*

   Hogs: Higher             Futures: Mixed     Lean Equiv: $103.00 -$0.43**

   *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:

   The April live futures contract went off the board at $258.47. The June
contract is now the lead month and is over $4.00 lower. The strength of the
cash cattle trade this week may result in this discount being quickly
eliminated. However, traders may wait until they see the interest in cash trade
next week. This week has been exceptionally strong with Southern cash sales
averaging $9.00 higher and Northern dressed cattle as much as $14.00 higher.
Boxed beef closed higher with choice up $1.47 and select up $1.92. The House of
Representatives passed a new farm bill, which will move on to the Senate. In
the bill, there are proposals that would reshape the meat industry, such as
beef labeling transparency, international trade, expansion of small meat
processors, state inspection authority, and consumer information about
alternative proteins.