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DTN Early Word Opening Livestock       07/24 06:16
   Meat Futures to Open in Opposite Price Directions

   Look for the cattle complex to open significantly higher, supported by
follow-through buying and ideas of another round of impressive feedlot
strength. Conversely, lean hog futures should open substantially lower,
pressured by residual selling and struggling fundamentals.

By John Harrington
DTN Analyst

Cattle: Cash $2-$4 HR        Futures 50-150 HR       Live Equiv $174.06 + .79*
Hogs:   Cash Steady-$1 LR    Futures 100-150 LR      Lean Equiv $141.37 -
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue


   Based on the sizzling sample of cash cattle sales seen here and there on
Wednesday (e.g., $255 basis Nebraska; $160 basis Iowa), we assume significant
trade volume will eventually develop at sharply higher prices sometime Thursday
and/or Friday. Just when you think this summer's bullish curiosity is about to
run out of gas, a new wave of unexpected potential swells in the near horizon.
Asking prices are around $160-plus in the South and $255-plus in the North.
Live and feeder futures are set to open significantly higher with the former
probably gapping to new historical highs the moment pit trading begins.
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