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DTN Early Word Opening Livestock       09/30 06:17
   Cattle Futures Staged to Open Moderately Higher

   Live and feeder contracts should begin with a firm undertone, girded by
residual buying interest and a degree of cash optimism. Lean hog futures should
also open some higher, supported by follow-through buying and light bull
spreading.

By John Harrington
DTN Livestock Analyst



Cattle: Cash Steady-$2 HR     Futures 25-50 HR        Live Equiv $163.56 + .48*
Hogs:   Cash Steady-$1 HR     Futures 10-30 HR        Lean Equiv $128.89 +
$2.06**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue

GENERAL COMMENTS:

   Tuesdays are typically quiet in cattle country and we expect that to be the
commanding norm this morning. If there is a surprise it could stem from the
fact that packers appear to be extremely short bought given their limited
procurement last week. On the other hand, if feedlot managers were tough to
deal with on Friday, they're likely to be even more bullishly stubborn this
morning given the new roll the board seems to be on. Look for preliminary
asking prices to be around $162 in the South and $253 to $255-plus in the
North. Look for cattle futures to open moderately higher, supported by
follow-through buying and short-covering.
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