MFA Agri Services  2200 Clinton Rd Sedalia, MO 65301
Sedalia 660-826-7097 - Cole Camp 660-668-3222 - Windsor 660-647-3123  
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DTN Early Word Livestock Comments      05/01 06:22
   Cattle Futures May See Further Pressure From Uncertainty Wednesday

   The cattle complex came under substantial pressure Tuesday, mainly from the
concern over testing ground beef to see whether there is any evidence of the
H5N1 virus. The uncertainty triggered the liquidation of futures. Hog futures
closed mixed with traders uncertain over cash and demand.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Lower        Futures: Mixed    Live Equiv:   $218.19 -$1.62*

   Hogs: Higher        Futures: Higher   Lean Equiv:   $104.67 -$0.24**

   *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 cattle market has been reactive to any information that has developed
over the discovery of the H5P1 avian flu virus in dairy cattle. The uncertainty
of whether it would impact beef cattle has been hanging over the market. USDA
announced it would test ground beef in more highly concentrated dairy areas to
see whether the H5N1 virus matter is present. This increased the anxiety of
traders and triggered liquidation. There has been no announcement of any test
results but the "what if" is all it took to increase the selling. Feedlots may
want to move cattle more aggressively this week but may find packers will not
be aggressive to purchase. Boxed beef prices did not provide any support with
choice down $3.16 and select down $0.26.