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DTN Early Word Opening Livestock       09/26 05:58
   Cattle Futures Should Open Higher Thanks to Follow-Though Buying

   Live and feeder contracts seem set to open higher, boosted by the board's
firming action late Friday. On the other hand, lean hog futures are likely to
open lower, pressured by unusually large, early fall country receipts and
defensive carcass value.

By John Harrington
DTN Livestock Analyst

Cattle: Steady-$2 HR   Futures: 50-100 HR     Live Equiv $127.24  - .31*
Hogs:   Steady-$1 LR   Futures: 50-100 LR     Lean Equiv $ 82.08  -1.23**

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


   Trade volume in feedlot country last week seemed generally, light,
especially in the South. It will be critical to check mandatory accounting
later Monday, but it was our perception that selling interest dried up around
midday Friday when futures snapped off extreme session lows. At any rate, cash
activity Monday will be limited to the distribution of new showlists. Our guess
is that the late-month offering will be somewhat larger than last week. Live
and feeder futures should open moderately higher, supported by follow-through
buying and short-covering.
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