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DTN Early Word Opening Livestock       06/26 05:59
   Look For Cattle Futures to Open Under Pressure Linked to Negative on Feed

   Live and feeder cattle contracts should open significantly lower, initially
checked by the larger than expected May placement and long liquidation. Lean
hog futures seem likely to open higher, supported by falling carcass value and
bull-spreading interest.

By John Harrington
DTN Livestock Analyst

Cattle: Steady-$2 LR   Futures: 100-200 LR   Live Equiv $157.10  -1.26*
Hogs:   Steady-$1 HR   Futures: 50-100 HR    Lean Equiv $106.68  +1.67**

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


   As feedlot managers move into the final week of June, and the second
quarter, they are hoping that the cash market can somehow find a way to pull
out the bearish tailspin of the last two weeks. A crucial first step would no
doubt involve the stabilization of live and feeder futures. For that to happen,
we may first have to quickly digest the June 1 Cattle on Feed report, which
some saw as somewhat disappointing in terms of larger than expected May
placement. Cash activity will be limited to the distribution of new showlists.
The late-month offering is likely to be somewhat larger than last week. Asking
prices may not be well defined until midweek or so. Live and feeder futures
should open lower, pressured by on feed implications and long liquidations.
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