DTN Early Word Livestock Comments      04/02 08:11
   Traders Focus On Current Demand Rather Than Tariffs

   Cattle futures posted strong gains Tuesday as traders have decided the
tariffs may not have much impact on beef prices. Demand remains strong as boxed
beef soared. Hogs found buying interest Tuesday, moving futures back into the
sideways trading range. Packers are expected to be more aggressive later in the
week.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Higher        Live Equiv: $249.00 +$4.00*

   Hogs: Higher         Futures: Mixed        Lean Equiv: $101.33 -$1.94**

   *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 experienced strong gains on Tuesday with contracts reaching
back near their highs. Traders seemed more focused on cattle supplies and good
demand rather than tariffs. It will take some time to see the impact on
international demand. Domestic demand remains strong as boxed beef prices
continue to increase. Prices jumped $6.96 for choice and $2.06 for select.
Strong consumer demand may keep feedlots holding for higher cash as initial
offers are $2.00 higher than last week. However, it is uncertain how aggressive
packers need to be, as they had purchased some cattle ahead. Feedlots have been
holding cattle the past few weeks as cash has been strong, but now they may be
more aggressive in moving those cattle rather than holding out another week.
Feeder cattle led the charge on Tuesday as demand for feeder cattle in the
country remains strong.