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DTN Early Word Opening Livestock       07/27 06:04
   Cattle Paper Set to Open With Moderate Strength

   Live and feeder futures seem geared to open moderately higher, supported by
spillover buying and improving carcass value. On the other hand, lean hog
contracts seem likely to begin somewhat lower, checked by defensive
fundamentals and technical bearishness.

By John Harrington
DTN Livestock Analyst



Cattle: Steady-$2 HR   Futures: 25-50 HR   Live Equiv $135.05  + .95*
Hogs:   Steady-$1 LR   Futures: 25-50 LR   Lean Equiv $ 92.06  -2.38**

* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue

GENERAL COMMENTS:

   Cattle buying interest should slowly start to take form Wednesday with
preliminary bids around $183 to $185 in the North and $113 to $114 in the
South. Yet it's unlikely that such cautious efforts will generate any selling
interest, given recent board behavior suggesting that a significant seasonal
market bottom is at hand. Our guess is the initial asking prices will be around
$190 plus in the North and $118 plus in the South. Live and feeder futures
should open moderately higher, supported by follow-through buying and the
premium status of recent feedlot sales.
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