DTN Early Word Livestock Comments      05/12 06:07
   Trump's Executive Order Increases Volatility in the Cattle Market

   Cattle futures opened higher and moved up on the optimism that the market
will remain supported. However, the move by the Trump administration quickly
turned the market lower. Hog futures responded positively to the higher cash
and cutouts of Friday, opening higher and posting a nice rebound.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Higher          Futures: Mixed      Live Equiv: $290.28 +$2.77*

   Hogs: Higher            Futures: Higher     Lean Equiv: $103.40 -$0.58**

   *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:

   Packers were interested in getting their hands on some cattle early this
week, with some light trade taking place in the South at $2.00 to $3.00 higher.
Whether this will carry through the rest of the week is anyone's guess.
However, it should provide support to the market. What impacted the market on
Monday was the Trump administration signing executive orders to temporarily
suspend tariff-rate quotas on all beef-exporting nations for 200 days,
according to the Wall Street Journal. This will open the door for a substantial
increase in beef imports. There were also two other orders signed to help
rebuild the herd by giving additional loans to ranchers and easing restrictions
on wolves and electronic ear tags in cattle. This is going to increase market
volatility to a greater degree through the rest of the year. Boxed beef prices
were significantly higher on Monday, with choice up $2.83 and select up $6.48.