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DTN Early Word Opening Livestock       06/18 06:03
   Meat Futures Seem Staged to Open Week with at Least Moderate Strength

   Lean hog contracts are set to open higher, supported by positive
fundamentals and follow-through buying. The cattle complex should also open
with a firm undertone thanks to residual buying interest and cash premiums.

By John Harrington
DTN Livestock Analyst

Cattle: Steady-$2 LR Futures: 50-100 HR Live Equiv: $144.45 + 0.15*
Hogs:   $1-2 HR      Futures: 50-100 HR Lean Equiv $ 89.36 + $1.76**

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


   As far as we can tell, relatively few steers and heifers traded last week
with buyers and sellers haven't great difficulty in finding terms of
compromise. A limited number sold in the South late Friday at $112-113, $2-3
lower than the previous week. Needless to say, it will be very interesting to
see what develops this week given a strange combination of larger showlists and
short bought packers. Having said that, activity today should be limited to the
distribution of new showlists. Live and feeder futures seem set to open
moderately higher based on follow-through buying and cash premiums.
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