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DTN Early Word Opening Livestock       06/17 06:19
   Limited Activity Sparks Additional Weakness

   Firm pressure late last week in all livestock futures is likely to bring
about follow-through selling Monday morning. The weaker tone in hog futures has
traders searching for longer-term support levels.

By Rick Kment
DTN Analyst

Cattle: Steady              Futures: Mixed   Live Equiv: $143.34 -0.44*
Hogs:   Steady to $1 Lower  Futures: Lower   Lean Equiv: $ 88.20 +0.18**

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


   Cash cattle trade late last week appears to have been extremely light, which
should leave packers extremely short-bought for this week. This is not new for
most packers, as they seem to be able to maintain steady procurement levels
even though negotiated trade numbers remain light. The lack of active trade
last week could spark earlier movement this week as packers try to pull cattle
forward through the last half of the month. That being said, most of the
activity Monday is likely to be showlist distribution and inventory taking,
with bids and asking prices undeveloped. Mixed trade is expected in live and
feeder cattle futures early Monday morning following moderate to firm pressure
through the end of last week. Traders will continue to focus on the direction
of corn prices. Feed prices have the most direct impact on feeder cattle
production costs as traders and buyers utilize break-even levels to estimate
purchase prices of cattle moving to feedyards. The expectation that cattle
supplies will continue to remain strong through the rest of the year is also
adding underlying pressure to the entire complex.
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