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DTN Early Word Opening Livestock       08/31 06:10
   Cattle Futures Likely to Open Moderately Higher

   Look for live and feeder cattle contracts to open moderately higher,
supported by follow-through buying and hopes of stabilizing cash. Lean hog
contracts should be mixed in the early going thanks to spillover selling on one
hand and short-covering on the other.

By John Harrington
DTN Analyst



Cattle: Cash Steady          Futures 10-30 HR    Live Equiv $162.96 - .38 *
Hogs:   Cash Steady-$1 LR    Futures Mixed       Lean Equiv $89.35 - .23 **
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue

GENERAL COMMENTS:

   Cattle market watchers are set start another week with the most recent
snapshot of cash business only partially developed. While the Northern trade on
Friday was light to moderate with most dressed sales at $228 (roughly $4
lower), Southern biz never seemed to get off the ground (some dressed deals
were evident late at $231). It will be interesting to see what the mandatory
summary for the week says when the data is released near midday. With that
confusion in mind, Monday's action should be typically slow with the
distribution of showlists about the only thing on the agenda. Our guess is that
the pre-holiday offering will be about steady with last week. Initial asking
prices should be around $150 in the South and $232-plus in the North. Live and
feeder futures seem geared to begin moderately higher thanks to residual buying
and cash premiums.
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