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DTN Early Word Opening Livestock       10/24 06:23
   Cash Cattle Values Surge Higher

   Strong gains developed in the cash cattle market starting Thursday
afternoon. It is expected that cash market interest will continue to be seen
through much of Friday, although given the strong price jump over week ago
levels, it is uncertain how many cattle packers will be willing to buy.

By Rick Kment
DTN Analyst

   Cattle:  Cash: $4 to $7 Higher    Futures 50 cents Higher    Live Equiv
$169.62 - $0.95*
Hogs:   Cash: $1 to $2 Lower     Futures: 50 to 90 Lower    Lean Equiv $108.53

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


   Light cash trade developed through the afternoon Thursday in all areas with
live basis listed at $170 per cwt. This is a $4 to $6 per cwt rally over last
week levels indicating just how much packers need to access cattle heading into
the weekend. The Cattle on feed report will be released Friday afternoon,
although it is still uncertain just how much trade will need to be done by the
end of the day in the cash business. There is expected to need to be some
additional cattle moved during the day Friday, but it is still sketchy of just
how active trade was late Thursday and how much longer packers checkbooks will
remain open at these price levels. Futures are expected to see some moderate
follow through buyer support early Friday, with pre report positioning likely
to be seen through the session.
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